Marketing Doctor Says:

Historic Brand Decision By Exxon Is A Good One

This has been a big week for branding news (or news with a strong branding angle).  The tomato crisis is still growing; airlines are doing radical cost-cutting (possibly at the cost of their brands) and the Budweiser takeover is making waves (30,000 Bud drinkers signed an online petition to keep the company American-owned). 

 But here’s a short note on Exxon’s big news: they’re planning on getting out of the gasoline station business. 

 Given the brand’s long history in the market this is really historic.  Here’s the story. 

 I recently argued for the rebranding of gasoline (here) but clearly Exxon is going in a different direction and away from using these stations as branding platforms.  And you know what?  Even when I wrote that post I knew I was reaching a bit –chalk it up to some sentimentality for the old Esso stations creeping into this old brander’s heart.  I guess the days of putting a tiger in your tank really are over!  

 
Fact is, retail is a tough business in the best of times and now is clearly not the best of times for gasoline stations.  Certainly from a dollars and cents perspective it makes sense to move away from a lackluster profit center.  Not only that.  By jettisoning those stations, Exxon can keep going in the direction of becoming the global energy brand without the baggage of the guy at the Exxon pump upset at them for the prices being so high.  There are better ways of re-enforcing their changing brand in the consumers mind than with a “service” station (especially when these days of high prices and little or no service, it is the consumer feeling like he or she is doing the serving).

 
The articles about this change say that the company will continue to manage their brand (or more precisely the Exxon-Mobil brand) at the many stations that are not owned by the company.  Though you’ve got to wonder how that will work in practice.  Brand management in the retail environment is best done with strong, central guidance, vision and energy.   

 
Overall, though, this is a great company that has done a wonderful job of branding in the past.  I think they made a tough call here, but with a smart long-term branding logic behind it.  And I wouldn’t be surprised if we see the Exxon-Mobil stations that are left making some big brand adjustments in the not too distant future.

 
And, remember, it’s always easier when you keep marketing and branding in mind!