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Supported by theAustralian Institute of PackagingSupported by apics LtdSupported by the NRABABY KINGDOM TARGET CALTEX PETSTOCK BLUE HAVENPROFILEthe discountcultureWhat matters more –quality or quantity?CaltexStar Mart– How Convenient!Key elementsto build and driveBuildingwealth ByBorrowingmore andowinglessAs featured inAustralia’s Best RetailFor more info visitmedia.net.auWith a passion and commitment to providing a ‘one-stop’shopping experience in a clean, convenient location,Caltex Star Mart is flourishing across the country.Caltex Australia is the leading oil refiner and marketer ofpetroleum products in Australia. However, it may come asa surprise to learn that Caltex is also Australia’s numberone convenience retailer with a national network of over 635stores, 95 of which are company operated and the remaining 540stores operated by independent franchisees.With such a vast network of convenience stores across thecountry, trading predominantly under the Caltex Star Mart brand,Caltex deals with some of the biggest suppliers of fast-movingconsumer goods in Australia. “From a supplier perspective, wetend to work with the large, multinational companies that haveknown brands,” says Karim Sumar, National MerchandiseManager, “because, from a convenience perspective, whencustomers come into our convenience stores, they’re not therespecifically to try out new brands; they want known brands thatthey trust through past experience and awareness.”As the leading player in convenience, Caltex has an extremely highturnover volume of multiple line items. This means the companymust maintain close contact with its key suppliers.“Communication and longevity are absolutely important,” Karimhighlights. “In fact, these are two of ten key areas we evaluate tomeasure the overall performance of each supplier, culminating inannual supplier awards we present to recognise excellence invarious areas of operation.“We look at innovation, where they’re focusing in terms ofdirection; we look at their supply chain and stock reliability; andthere’s a whole heap of other things that we expect them to deliveron. So it’s really about having a joint understanding of each other’sbusinesses; but more importantly, we have what we call a jointbusiness plan, so we know exactly what our respective roles are indelivering the Caltex Star Mart vision.”42 | Australia’s Best Retail media.net.aumedia.net.au Australia’s Best Retail | 43

PROFILEANY WAY YOU LIKE ITSELF SERVE ∙ SERVE OVER ∙ HOT ∙ COLD ∙ AMBIENTCREATE YOUR OWN STOREChoose from a stylish range of hot, cold and ambientdisplay counters available in either self serve (openfronted) or full serve models. Add a coffee or baseunit for your cash desk and your store will be readyfor business.Review and monitoring are essential to Caltex’s supply-chainefficiency. Karim says, “From our perspective, there are variousforms which are dependent on the supplier sophistication level andthe size of the business. We don’t want to have to tick a box andsee a supplier every month; that’s not the expectation. It’s verymuch about understanding their role within our business andwithin the category that they play in. So for key categories, ourcategory managers could have anything from a weekly work-inprogressmeeting (WIP) to a monthly or even a quarterly WIP forthe smaller suppliers.“Further, we engage in periodic strategic reviews with our largersuppliers. The frequency of these reviews does vary with eachsupplier; however, I will personally catch up with my counterpartsin some of the bigger customer relationships anywhere from oncea fortnight to once every few months.”Collaboration between Caltex and its suppliers is a vital element inmaintaining the company’s top position within the Australianconvenience market. Karim highlights that “it’s been great to havea common platform of conversation between ourselves and oursuppliers, and actively working together to drive more of ourbusiness assets. From our perspective, it’s not just the Caltexbusiness; it’s also our suppliers’ business. It’s a tough tradingenvironment; we all know that, so the main focus is how do weengage and work together to minimise the impact of the tradingclimate out there? It’s really about collaboration and having thatspace to look outside the box, so to speak.”Star Mart is a major priority for Caltex Australia as the companycontinues to invest heavily in the ongoing development of thebrand and its extensive convenience retail network. As a result,Caltex Star Mart is at the forefront of the multibillion-dollarconvenience retail market, having already set a new benchmark forconvenience retailing with the successful launch of its new 21stCentury Caltex (21CC) Star Mart concept stores.FRIJADO MODULAR COUNTERSFor sales, service and expert advice, call:1800 658 120 or visit www.avem.com.aumedia.net.au Australia’s Best Retail | 45

THE NO. 1 FLAVOUREDMILK IN AUSTRALIA *PROFILE“We conducted several focusgroups. We then looked atliterally drawing from scratchwhat the stores should contain,not just from a productperspective but the layout, theplacement, the colour scheme,everything, in order to make theexperience easy.”- Leo PucarWHILE yOUR cUSTOMERS ADD A MOTOR TO THEIR DAyPARMALAT AUSTRALIA LTD 1800 000 257 FAx: 1800 335 188 EMAIL: SALES.OUTbOUND@PARMALAT.cOM.AU *Aztec Temple & share mat 22.05.11PARF0041_Half Page_145x210.indd 124/10/11 9:39 AMThese stores have been developed with extensive customer research to provide the mostconvenient and clever solutions for everyday occasions. “Before we launched our newconcept 21CC Star Mart,” says Leo Pucar, National Manager Retail, “we spent anextensive amount of time evaluating global trends in convenience and understanding whoour local convenience customers are, what they needed, and what they wanted.”“We conducted several focus groups. We then looked at literally drawing from scratchwhat the stores should contain, not just from a product perspective but the layout, theplacement, the colour scheme, everything, in order to make the experience easy. Theentire development was very much customer based, driven by the revelation that ourcustomers are only in our store for less than 110 seconds. Our challenge was to make iteasier for them to navigate the store and, more importantly, to increase the transactionalbasket size.”Based on customer research, the new Caltex Star Mart store format has a distinctive,open-plan layout which optimises the available floor space with an innovative new islandchiller, wall chillers, and merchandising pods which showcase the offer and providecustomers with a more open environment to browse the store, with uncluttered shelvingmaking navigation so much easier. Warm,earthy colours, demure shelving, and softlighting create an ambience that makes thecolour of the product offer stand out andattract the attention of customers. This iscomplemented by bright, directionalimagery, such as a cow in the dairysection, which acts as visual pointers tothe location of regular product lines.“The beauty of the 21CC Star Mart layoutis that it’s more customer-focused,” saysLeo. “Following global convenience trends,we are moving towards a fresher offer andensuring that key products stand out.Customers can come in, stand at the frontof the store, and see the whole offer,making it easier for them to decide wherethey need to go and move much fasterthrough the store. Many customers thinkwe’ve broadened our offering; however,we’ve actually reduced it – it’s just moretargeted.”In addition to everyday convenience items,21CC Star Mart provides customers with atailored range of products and servicesincluding fresh food, ready-prepared mealson the go, instore fresh bakery, and freshlyground coffee – and healthier optionsdesigned to meet the needs of increasinglyhealth-conscious convenience customers,providing them with a healthier choiceversus traditional convenience food offers.The 21CC format is now the standard forall Caltex Star Mart convenience retailstores and is being progressively rolled outacross the network for all new stores,upgrades and rebuilds. However, havingre-engineered the instore design, layoutand retail offer, Caltex has also updatedthe Star Mart logo, imagery and liveryfeaturing on the outside of its 21CC stores.®Registered Trademark. ©Mars, 2011media.net.au Australia’s Best Retail | 47

PROFILEPROFILEFor the first time in 14 years, the colourful image that Star Martpresents to the world is getting a makeover. At the centrepiece ofthe new teal and tangerine branding is an ‘action’ iconaffectionately nicknamed ‘Sparky’ that resembles a dancing star.“The strategic intent of this design was to create a contemporary,smart, friendly and fresh image, reflecting Caltex’s vision to be aworld-class convenience retailer,” explains Leo.Most importantly, it had to have a strong visual identity and standout from competitors. “We believe we’ve achieved all that,” saysLeo. “Sparky conveys movement and energy, which personifiesour convenience store customers who are typically on the move ina fast-paced world.”The revamp is expected to deliver better recognition andawareness of the Caltex Star Mart convenience brand in themarketplace. “The process is one of evolution, not revolution, asthe Star Mart image needed to embrace the twenty-first century,”says Leo. “The Sparky logo represents what our research tells usabout our busy customers – that they’re time-poor, on the go, andlooking for solutions.”The branding was developed in consultation with Chevron, whichowns the Star Mart trademark. Chevron recognised CaltexAustralia as the regional leader for convenience retailing andsupported the initiative to develop and trial the new brand imageryin Australia.Caltex worked with strategic design agency Hulsbosch to createthe refreshed look. The main design elements are the introductionof a visual icon which grabs attention, a smile feature across the“Over 30 years, Caltex and TEG(Efficiency Displays) have worked together toconstantly improve the shopper experience.Their proactive attitude and open mind arekey reasons why everyone at EfficiencyDisplays loves working with Caltex to executeand deliver results.”- John Hindman, Managing Director, The Efficiency GroupSince 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little better everyday. Today, P&G touches and improves the lives of about 4.4 billion people in more than 180 countries worldwide withour portfolio of trusted, quality brands. Driven by passionate people and a common purpose, P&G aims to improve thelives of consumers now and for generations to come. As the name behind over 20 of Australia’s favourite brands, P&Gis committed to making consumers’ lives easier and more enjoyable whether they’re washing dishes, shaving, brushingteeth or caring for their hair. We achieve this by focusing on innovation, minimising the environmental impact of ouroperations and through our commitment to social responsibility.procterandgamble.com.auTouching lives, improving life.

NEW FROMAUSTRALIA’S #1ENERGY DRINK BRAND *DRIVE INCREMENTALSALES THIS SUMMERWITH NEW BLUE• Available in both 250mL and 500mL cans• Only available for a limited time!• Energy Drinks are now larger than Carbonated Soft Drinks and are growing at 8%*• V leads the energy market with 39% share*• Consumers love the new flavour!**“A positive addition to the V family, something more fruity and appealing”**PROFILE*Source: Aztec P&C Scan Data, MAT 14/08/2011 **Source: Futurescape Research, 2011PROUDLY SUPPORTINGJFB0032C_V-Blue_Caltex_TradeAd.indd 112/10/11 10:01 AMFile name: JFB0032C_V-Blue__Caltex_TradeAd.indd Version: CS5 Date: 12.10.11 Final size: 210 x 145mm Scale: 100%Curtis Hayne Curtis Hayne Robyn Lyall Robyn LyallCurtis Hayne: (02) 9968 5301Proud Partners Of Caltex AustraliaSupporting Excellence In CustomerExperiences Every Day“It is exciting working with Caltex as we strive to develop and grow the beverage segment together. Caltex is always willing tocollaborate on ideas to further develop its beverage category and remain an important strategic partner to Frucor.”- Nigel Carson, Trade Activation Manager, FrucorText Feedback ProgramMarket Pulse is a privately owned customerCustomer Insights Researchexperience improvement services company with astrong footprint in the Australasia and South EastAsia regions and global reach capabilities.Operating since 1989 and with a specific expertise in developingcustomized front-line performance management programs forlarge-scale retailers and service companies we focus on addingvalue through people and technology.We are a full service research company with a unique ability tocover all our clients customer insights, front line performancemeasurements such as mystery shopping and retail evaluations,merchandising and integrated reporting needs.For more details visit our websitewww.marketpulseinternational.comCONTACT US TODAYTO DISCUSS YOUR NEEDSIN THE AREAS OFMystery ShoppingRetail EvaluationsExit InterviewsWeb/Email Feedback Programsfascia indicating a welcoming and friendlyshopping environment, and thecontemporary colour scheme of teal,tangerine and white.The new store image has been extendedinto uniforms, point-of-salecommunications, and other instoremerchandise. Leo says, “The dynamicsymbol will enable the Star Mart brand tohave a clear identity in many differentenvironments; this is one of the strengths ofthe new branding.”All 21CC Star Marts will be updated withthe new Star Mart image. “Sparky will beprogressively rolled out to the rest of thenetwork as they’re upgraded to the 21CCformat,” says Leo.“Convenience customers are becomingmore sophisticated in what they want andneed. Caltex Star Mart is constantlyevolving to meet their expectations, andthat means working more closely than everwith our suppliers,” says Karim. “We needto identify trends early and adjust tochanges in the market, particularly withlegislation, technology, sustainability andthe economy.”Tobacco has long been a majorconvenience product category; however, inrecent years it has been compromised byrestrictive legislation impacting instoreadvertising and operational procedures, theimposition of 25-per-cent excise, and nowthe prospect of plain paper packaging. Thishas forced the convenience industry toconsider new product categories toaddress the inevitable loss of sales.Karim says, “All this comes at a time whencustomers are becoming more healthconscious and are seeking healthieralternatives to the traditional conveniencestore offer. Caltex Star Mart is seeing a shiftaway from the more traditional linestowards healthier options, and in particularmore fresh food offers.”“This is not just about fresh produce; it isabout the fresh credentials of our widerfood offer, including fresh sandwiches,chilled pre-prepared meals on the go,salads, bakery, coffee and dairy,” saysKarim. “For example, Caltex Star Mart hasinvested heavily in the front-of-store offerover the past five years, particularly in freshbakery and coffee. In a bid to change thepublic perception of service station coffee,Caltex Star Mart has teamed up with CaffèAurora to deliver quality coffee at selectStar Mart convenience stores. Customerscan be assured that the freshly groundbeans will create an excellent cup of pipinghot Caffè Aurora coffee every time, withfresh milk rather than the powder ofyesteryear.”Caltex Star Mart has also formed astrategic alliance with the Commonwealthmedia.net.au Australia’s Best Retail | 51

PROFILEPROFILEBank to further simplify customers’ shopping experience. As ofmid 2011, Commonwealth Bank contactless readers have gonelive in 387 Caltex retail sites across the county. The efficiency ofpayment technology like MasterCard PayPass eliminates the needfor PIN or signature verification, adding further convenience toCaltex Star Mart’s customers. The company plans to expand thecontactless footprint across the network by year end, and hasn’truled out plans to deploy contactless payment points directly tofuel pumps in the future.Caltex Star Mart is also very conscious of the company’s impacton the environment. To help reduce the amount of plastic waste,Caltex has made a sustainability decision to team up with CleanUp Australia and offer customers reusable bags. Available for asmall cost at any Caltex Star Mart store, reusable bags can befolded away and compactly stored in any glove box or shoulderbag to help customers make a difference to our environment’ssurvival.“We believe that in this tough economic climate and operatingenvironment, we need to continue having the right locations andthe right offer in place. So, as the economy turns around, as thecustomer preferences turn around again, we are well positionedfor the customer to come back and start purchasing,” Karim adds.“To ensure that this happens, and that we continue to be thenumber one convenience retailer in the marketplace, we areconstantly challenging all our company-owned and franchiseeTo help reduce the amount ofplastic waste, Caltex hasmade a sustainabilitydecision to team up withClean Up Australia and offercustomers reusable bags.Campbell Arnott’s would like to congratulateWinners of the AACS Retailer of the YearMajor Head Office Award 2011

PROFILEPROFILEretailers to step up, focus on the customer,and deliver a great customer experienceand consistent operational execution bydriving compliance through our All Starsprogram.”The All Stars program establishes thestandards required to exceed consumerexpectations. It also defines the Caltex StarMart brand and site standards, andemphasises legislative compliance. Further,the All Stars program performsassessments in customer service, sitepresentation, promotions, merchandisingand safety. This enables regular,constructive reporting, which helps toimprove business and the customer’sexperience.Karim looks at the company’s continuedsuccess, and outlines the notions most vitalto Caltex Star Mart’s continuing marketleadership. “It’s a combination ofdifferentiating ourselves from thecompetition, understanding who ourcustomer base is, and then offering themwhat they want. There’s no point in usoffering a product range for customers whomay not even come to our stores. That’swhat we’re focusing on and what we’reworking towards.MS278 Gatorade AW.pdf 1 21/10/11 2:02 PM“In the last 18 months to two years, there has been a significant focus on the customer.Caltex is investing very heavily in the Star Mart brand, and will continue doing that; andwhen we’re talking about investing, we’re talking about actually future proofing the stores.Our intention is to make sure our suppliers are on board with us on this journey.”Caltex Star Mart is a true innovator in the Australian convenience retail market. Thecompany’s 21CC Star Mart concept stores have been a great success across the nation.Through constant improvement and gaining insight into what customers want, Caltex hascontinued to take a leading position in the market.The company aims to continually make the shopper’s experience simpler, reaffirming theconvenience associated with Caltex Star Mart stores.Star Mart RecognitionCaltex Star Mart dominated this year’s annual AACSAwards held in Sydney on 24 August. The brand wasrecognised with the following three awards:Retail Store of the Year (Company Operated)Caltex Star Mart Kingsford, NSW (Mustafa Ghulam,Calstores Store Manager)Retail Store of the Year (Franchise Operated)Caltex Star Mart Hamilton, NSW (Reinhard and SuzannahBolsius, Franchisees)Major Retailer of the Year 2011Caltex Star MartAACS is the premier representative body of theAustralasian convenience industry, which includes majorretailers, independent chains, and industry suppliers.Caltex’s National Manager Retail Leo Pucar said it was anexceptional achievement to win in the three categories.“The awards are testament to the ongoing passion anddedication of our people and franchisees who arecommitted to following our rule of ‘Getting it Right!’ for ourcustomers,” Mr Pucar said.“The past 12 months have been challenging for theindustry; however, Caltex Star Mart is leading the chargeon customer service, instore execution, and innovativeproduct offers which are keeping us ahead of the pack.”GATORADE PRODUCED & DISTRIBUTED IN AUSTRALIA UNDER LICENCE FROM STOKLEY-VAN CAMP INC. BY SCHWEPPES AUSTRALIA PTY LTD.

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