The ORLEN brand enters the Lithuanian and Latvian markets.
THE ORLEN BRAND ENTERS THE LITHUANIAN AND LATVIAN MARKETS
Launching 120 owned-stations, gaining a 20% share in the consolidated Lithuanian-Latvian markets and launching the ORLEN Lietuva and ORLEN Latvija brands are the three pillars of PKN ORLEN’s retail strategy in the Baltic states. The premium brand will come with enhanced quality VERVA fuels, new standards in non-fuel products, and hospitality.
PKN ORLEN has set ambitious goals for its retail strategy in Lithuania and Latvia. The company is planning to become the regional leader while ensuring long-term value growth and financial efficiency.
NEW STATION CHAIN
Building the retail chain in Lithuania and Latvia will be achieved in three phases which, over a five-year perspective, will enable the company to gain a 20% share in the consolidated markets of the two countries.
In the pilot phase to the end of 2008, PKN ORLEN will focus on acquiring selected stations or station chains and preparing for construction investments. In the second phase, planned for 2009-2010, the company will continue the acquisition process, but the focus will be on launching newly-built stations. The final phase will be dedicated to strengthening the chain's position in the Baltic markets and finalizing its construction plans. The schedule assumes that, by 2012, the company will have acquired approximately 20 stations in Lithuania and 25 in Latvia. During this time, the joint Lithuanian-Latvian market will see 75 newly-built stations. Throughout the acquisition and construction process, the company will also continue to develop its franchise system. Under this, the company is planning to sign 75 contracts with external partners by 2012. Upon completion of these plans the company will be operating a network of approximately 230 stations in the Baltic region and achieve its planned 20% share in the Lithuanian-Latvian markets.
NEW BRAND
The specifics of the Lithuanian and Latvian markets, as well as consumer expectations expressed in market studies, have indicated the need to introduce one service station brand, unlike the Polish, Czech and German markets, where the respective PKN ORLEN chains are operated on the basis of two brands - a premium and an economy offering. In the Baltic states, the chain will be represented by the premium standard, expressed as the ORLEN name followed by the name of the country, i.e. ORLEN Lietuva and ORLEN Latvija. These brands will be positioned as "high quality at an affordable price”.
The ORLEN Lietuva brand will be introduced first, replacing the existing Ventus brand. This decision is the result of market studies which indicate that the ORLEN brand is accepted and trusted by Lithuanian customers. It is associated with a guarantee of high quality products and services. The 34 existing Ventus stations will be rebranded.
INNOVATIVE OFFERING
All stations comprising the ORLEN Lietuva chain will offer a new fuel standard – unleaded 95 and 98 petrol and diesel. The key element in the offering will be the differentiated Verva fuels, which represent supreme quality and advanced technology. ORLEN Lietuva stations will carry Verva 95 petrol and Verva Diesel. After two years of presence in Poland, VERVA is the most recognizable premium fuel brand, ahead of brands such as V-Power, Ultimate or Suprema.
Stores offering nonfuel products will be located in the majority of ORLEN Lietuva stations (95% - 100%) and will be presented in a new, customer friendly format. The chain will also carry an innovative food offering represented by the “stop cafe BISTRO” brand.
