Understanding Customers
Taking heed to customers’ voices is the first step to delivering customer satisfaction. Keenly aware of this, S-OIL embeds their valued inputs into business policies in order to offer services which are best aligned with customers’ needs. We seek to meet consumers’ expectations through a variety of initiatives, for example, ‘S-OIL Supporters’, and Customer Relationship Management (CRM) system. Voice of Customers (VOC) and Happy Call are operated to address customer complaints and requests.
S-OIL Supporters: A Communication Channel with Customers
S-OIL Supporters, a prosumer group formed to offer the top-level consumer service, identifies the varying needs from the perspective of consumers themselves, helping the company practice better-targeted customer-oriented management. Consisting of some 1,500 S-OIL VIPs from across the nation, S-OIL Supporters monitor market response to our products and marketing campaigns and make proposals and suggestions for customer satisfaction management in general, playing an integral role in the company’s growth. As our meaningful partner, S-OIL Supporters take Onsan Refinery tour, a program the company first organized in 2013 to help them become more familiar with our products, and participate in the social contribution activity ‘Sunshine Sharing’.
Customer Relationship Management: Scientific and Systematic Promotional Campaigns
S-OIL’s CRM system allows the company to make a scientific and systematic analysis of customer database. Through this system, the company identifies customer behavior at service stations and designs a variety of targeted promotional campaigns around their life cycle.
Protection of Customer Information
As the number of subscribers to Bonus Card has reached 7.16 million as of late 2014, S-OIL has established a round-the-clock security system to protect customer information. An integrated DB management system, CRM stores sensitive customer information in encrypted format. Minimum number of employees have access to the DB. Even authorized employees must access the information via the security system. To refer to customer information, approval should be obtained from personal information management officer. The company ensures that the information acquired from the system is properly disposed of after use. This procedural and technological control minimizes the risk of information leakage committed by our employees or those from partner companies. S-OIL pledges to continue to reinforce the customer information protection system.
Approaching Customers
S-OIL’s advertisements, promotion, and card marketing activities are designed to strengthen its brand recognition, add to its customer base, and distinguish it from its competitors. We are fully complying with related laws in all of its marketing activities, including the Broadcasting advertisement Act and the Giveaway Announcement Act.
Enhancement of Brand Value
Given the characteristics of oil products, it is not easy for consumers to know the product quality gap. Therefore, it is all the more critical for refiners to highlight their products’ strengths if they are to enhance their brand image based on consumers’ steadfast trust. Among others, a company with a powerful brand image can offer their products at premium prices to their loyal customers. Thus, they can afford to lower marketing costs as prospective consumers will turn into devoted customers. It is the reason why S-OIL undertakes a variety of aggressive brand marketing activities in a consistent manner.
Advertising Campaign that Boosts Brand Value
In 2012, S-OIL launched a new commercial that featured the character “GOODOIL” as a model, in addition to the company’s enduring message on “good oil,” the Yellow Frame, and the enjoyable commercial song. The TV commercial, showing a real life backdrop and the 3D character, focused on delivering the brand’s genuineness and friendliness through “GOODOIL.” To further boost the customers’ recognition of this character as well as its likability, the company also engaged in moment of truth (MOT) activities through guerilla marketing, trick art, emoticons, etc.
In 2013, S-OIL focused its advertising campaigns on solidifying public awareness of GOODOIL (GOODOIL = S-OIL = good oil brand), offering customers a number of different opportunities to familiarize themselves with the marketing character, which served as a turning point in the Company’s brand promotion initiatives. TV advertisements continued to utilize the GOODOIL character to ensure greater attention to the brand and higher public interest. They also delivered uplifting messages about stress relief, family and travel in an effort to bring about a more positive image of the Company. Two S-OIL TV spots were among the highest ranked TV advertisements according to an online TV evaluation carried out between June and August 2013. Additionally, S-OIL was the overwhelming winner in the Top of Mind (TOM) survey on the refining industry. As we move forward in the future, we will continue to make full use of the GOODOIL character in all of our brand and consumer marketing campaigns and advertisements.
In 2015, TV commercial series "Fill Up," won the hearts of TV audience by resonating itself around family values and showing how people interact with one another in everyday life. S-OIL has also employed the highly effective "sonic branding" method to let consumers associate a certain sound clip with our brand and the "GOODOIL family", the marketing characters, set us apart from other advertisements.
The Top-of-Mind (TOM) awareness of S-OIL advertisement in 2015 was 62.9%, up by 11.9%p from 2014. Our efforts for distinctive advertisement campaigns have earned us Gold Prize in the 42nd MK Advertisement Awards (TV section), and the Best Award in the Korea Business Communication Awards (promotional video section).
In 2016, S-OIL will carry on the "GOODOIL family" campaign on TV, adding a fun and unique image to the animated and lively characters.
Character Marketing
A character plays an integral part in enhancing brand experience and friendliness. S-OIL introduced the character ‘GOODOIL’ in 2012 and has been utilizing it not only in its marketing campaigns but also communication with consumers. In 2014, S-OIL carried out distinctive marketing activities including the participation in the Seoul Character Licensing Fair and launch of the GOODOIL air sculpture. A consumer survey conducted after the marketing campaigns found that 91% of respondents became aware of GOODOIL with 77% in favor of the character.
Furthermore, 73% of them said that S-OIL’s brand image improved after GOODOIL marketing, clear evidence that the character was effective at instilling confidence in consumers to purchase S-OIL’s products. Going forward, S-OIL will carry out diverse character marketing so as to enhance brand recognition and create new brand values through added characters and diversified communication channels.
In 2015, we developed new characters, father "GOODADDY", mother "AUDREY", and pet dog "GOOMERONG", adding them to the "GOODOIL family". We created three-dimensional artworks of "GOODOIL family" on display in popular sites in Seoul and metropolitan area and for sales as character products at popup stores, adding to the intimacy with consumers. Furthermore, the characters are available in smartphone wallpapers and as icons via affiliation with SK Telecom and Kakao Talk.
In 2016, S-OIL plans to expose "GOODOIL family" on wider media channels to get in closer touch with consumers. We will relate with potential customers by launching the "GOODOIL family" spot animation season one consisting of eight episodes on social network sites and cable TV.
Consumers will also have a chance to meet the "GOODOIL family" characters in special places such as pop-up stores, lantern festivals and balloon parades.
Eco-promotion
S-OIL kicked off the eco-promotion in 2012 aimed at encouraging the public in ‘good consumption’ and raising their awareness of environmental protection. For example, in the ‘Car Diet Campaign’, drivers were encouraged to reduce car’s weight, while the ‘GOODOIL Tag Campaign’ was about maintaining the appropriate temperature inside cars. Those two campaigns won the grand prize and the special prize respectively at the Korea Communication Awards.
S-OIL continues to give consumers chances to voluntarily participate in the ‘good consumption’ campaign by distributing eco-promotion contents on SNS. We look forward to seeing our drive help to build a consensus on environmental protection as well as boosting consumers’ preference towards the S-OIL brand.
Newspaper Advertisement that Identifies with the Public
S-OIL advertisement on the front page in major newspapers every day has played an important part as its novel communication channel with the public, facilitating the creation of our image as a ‘friendly corporation that works hand in hand with the public’ and ‘a company that fulfills its social responsibilities.’
In November 2013, S-OIL put an end to the 18-month “30-letters of Nice Messages for YOU Campaign” advertisement, which communicated with the public on the front pages of Korea’s major daily newspapers. With a total of 10,000 people having submitted heartwarming messages, this campaign received extensive coverage on TV, newspapers, and other media outlets, winning a number of prestigious advertisement awards along the way from newspapers such as the Chosun Ilbo and Hankyoreh. Having carried out the ‘Heroes and the Environment’ campaign in 2014, S-OIL posted messages of gratitude to unsung heroes in our society like firefighters and heroic citizens while reminding the public of the importance of protecting endangered species.
Well-received by the citizens, this advertisement campaign was awarded the Excellent Advertisement Prize in the newspaper category at the Consumer Choice Advertisement. S-OIL launched a new advertisement campaign in 2015 featuring ‘healing words’, heart-warming messages to reflect on everyday happiness and to spread optimistic ideas.
The "healing words" series, launched in 2015, was well received by consumers with its heartwarming messages. In 2016, S-OIL plans to introduce a more informative series such as "common sense knowledge," "oldies but goodies driving music", and "local specialty" for a more contemporary and extensive communication with the public.
New Marketing Idea Contest for Prospective Customers
As a means of communicating with university students, who represent potential customers in the future, S-OIL held its 4th marketing idea contest, the 2014 S-OIL Brand Awards, for three months from November 2013. The contest invited university students to submit strategic ideas for practical sales increases in four different categories, including a comprehensive marketing communication campaign, S-OIL bonus card, S-OIL mobile app, and eco-promotion. A total of 392 teams made up of roughly 900 individuals took part in the contest. S-OIL will reflect the brilliant ideas generated through this contest in future marketing activities in an effort to make its brand more appealing to consumers.
Selected in ‘Best Korea Brands 50’
S-OIL was selected in ‘Best Brands 50’, announced by ‘Interbrand Korea’, an affiliate of the global branding consultancy, ‘Interbrand’. S-OIL’s brand value, ranked 40th in 2014 with an estimated value of KRW 400.52 billion, jumped to 39th at KRW 402.957 billion in 2015.
This feat is attributed to S-OIL’s continued dedication to maintaining consistency throughout its communication campaigns (good oil, commercial song, yellow corporate color) aimed at boosting friendliness towards customers and gaining their trust.
Implementing unique events and promotions
S-OIL is totally committed to its customers. We enter into relationships with them through our products and services and various other channels, including sports, cultural, and promotional events.
Sports Marketing
S-OIL burnishes its image of being first-rate, active and eco- friendly to potential customers by hosting and sponsoring a variety of sports events. This also helps to boost the public’s interest in sports. In addition to being the lead sponsor of the KLPGA/ MBC-Tour S-OIL Champions Invitational golf tournament since 2007, the company also backs professional golfers and racing teams. We also provide premium services to satisfy and favorably impress customers, such as inviting them to golf programs and various sports events. S-OIL will continue sports marketing which is effective in increasing brand attractiveness among potential customers.
Cultural Events
As a company that values arts & culture, S-OIL sponsors various cultural events as a means to build upon its strong relationship with customers. From 2013, the Company held a number of cultural events through its Culture Date program, which offers free tickets to cultural performances, and the S-OIL Cinema Date program, which offers free movie tickets to customers. These programs have been a big hit with customers and contributed to higher customer satisfaction. S-OIL will continue to develop a wide variety of cultural events to enrich customers’ cultural experience.
Varied Customer Services with Affiliated Companies
S-OIL has joined hands with affiliated companies to offer different services. In 2011, S-OIL launched a joint membership service with Lotte Group, allowing consumers to pay with Lotte Point at S-OIL service stations and LPG stations. We keep launching affiliated card services as we offer industry-leading discounts at gas stations through strategic partnership with key domestic card companies. Additionally, we were one of the first in the nation to introduce a smartphone-based mobile payment system. S-OIL aims to enhance customer satisfaction by concluding partnerships with different companies in addition to card issuers.
Fulfilling Customers’ Needs
S-OIL exists to satisfy its customers. We identify their needs in such areas as price, quality, and privacy protection, and implement policies and activities that are necessary to meet those needs.
Reasonable Pricing Policy
In pursuit of ethics management with the motto, “fair and transparent pricing,” S-OIL is opposed to all forms of dishonest and unethical behavior, including price-fixing, collusion, and other unfair trading practices. The price of the company’s products is based on objective data, including international petroleum product prices, the current exchange rate, our supply and demand situation, and domestic market trends. S-OIL spearheads the fair and reasonable pricing practices in the domestic market with its independent price adjustment system. When it comes to domestic light oil products (i.e. gasoline, diesel, and kerosene), our pricing committee takes into consideration factors that affect domestic oil products prices on a daily basis, securing fairness in price.
S-OIL’s Quality Competitiveness
Production of High-quality and Eco-friendly Products
S-OIL has been adopting a stricter set of standards than environmental regulations to develop and supply high-quality and eco-friendly products. This effort allowed S-OIL to win the highest grade for its gasoline and diesel products in the environmental quality evaluation. In recognition of its contribution to environmental preservation through product quality enhancement, the company also received an official commendation from the Minister of Environment in April 2012.
Prior to this, kerosene had obtained the "Eco-Labeling" certification in 1994 for the first time among Korean refiners in recognition of its superior eco-friendliness, and has been winning certification ever since.
Environmental quality of S-Gasoline(sulfur content)
Environmental quality of S-Gasoline(sulfur content) : Devision, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015 내용 테이블입니다.
| Devision |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
| 1st half |
4ppm |
3ppm |
4ppm |
4ppm |
4ppm |
4ppm |
4ppm |
| 2nd half |
4ppm |
4ppm |
3ppm |
4ppm |
4ppm |
4ppm |
4ppm |
Regulation value of the Minister
of Environment |
10ppm |
Environmental quality of S-Diesel(sulfur content)
Environmental quality of S-Diesel(sulfur content) : Devision, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015 내용 테이블입니다.
| Devision |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
| 1st half |
5ppm |
4ppm |
4ppm |
5ppm |
5ppm |
5ppm |
5ppm |
| 2nd half |
5ppm |
5ppm |
4ppm |
6ppm |
5ppm |
5ppm |
5ppm |
Regulation value of the Minister
of Environment |
10ppm |
Enhancing Quality Control in the Distribution Stage
S-OIL continues to reinforce quality control in the distribution stage to ensure consumers’ confidence in accurately dispensed genuine products. A case in point, S-OIL operates the ‘Trustworthy Service Station’, a quality assurance program applied to affiliated service stations. Another example is the ‘Quality Manager System’, where quality managers with experience and expertise conduct gas pump meter inspections and tank moisture inspections for service station owners. S-OIL supports cleaning service for tanks whose quality has been identified as deteriorating.
Formed for the first time in 2012, the ‘Quality Inspection Team’ conducts quality inspections on affiliated service stations and LPG filling stations. Also to expedite quality inspection, we introduced the simplified analyzer, making it possible to review inspection results instantly. From 2014, in another effort to reinforce quality control in the distribution stage, we started to tap into information on sales offices as well as irregularities monitoring data before selecting stations to be inspected.
Through this endeavor, S-OIL’s detection rate of abnormal products announced by the Korea Petroleum Quality & Distribution Authority was a mere 1.3%, the lowest among domestic oil refiners.
Performance of Quality Management System
Enhancing Quality Control in the Distribution Stage : Plans in 2013, Performances in 2014, Plans in 2015 Table.
| |
Plans in 2013 |
Performances in 2014 |
Plans in 2015 |
| Inspection on quality at affiliated service stations and LPG filling stations |
10,821 |
10,666 |
12,502 |
| Inspection on facilities at affiliated service stations |
1,311 |
1,616 |
1,612 |
◆ Establishment of Refined Product Quality Tracking IT System
It is important to track product quality in order to address quality issues arising from the stage of distribution to service stations. Aware of its criticality, S-OIL runs "Product Quality Tracking IT System" which integrates product distribution and quality information encompassing the Refinery, service stations, and customers to trace back distribution routes.
Strengthening Relations with Customers
S-OIL wants to have long-term relationships with its customers, not temporary ones. We support the managers of our service stations in a variety of ways, and have a host of programs in place to strengthen our relations with overseas customers. Our Integrated operation of VOC management system is designed to improve our customer service capabilities and deal with customer complaints efficiently and effectively.
Efforts toward Shared Growth with Service Stations and LPG Filling Stations
Service stations and LPG filling stations constitute our key customer base and at the same time the two main pillars for our domestic distribution channel. However, the worsening market conditions in recent years have sent a number of stations reeling from dwindling revenues and a significant labor shortage, sometimes forcing them to suspend or, worse, shut down operation. With the purpose of helping our business partners cope with such challenges through a business overhaul, S-OIL seeks to solidify long-term cooperative ties while working towards shared growth.
Enhancing Management Capabilities of Service Stations and LPG Filling Stations
S-OIL provides service station (S/S) and LPG filling station (F/S) managers with on/off-line education, consultancy by in-house professionals, and S-Family Magazine to sharpen their management capabilities.
Particularly, the off-line collective education programs with the title of 'Education for Service Station Managers' organized by district business HQs and 'On-site Visit Education' hosted by domestic sales offices have been winning great favor from participants.
It was confirmed from the 2015 education that station managers were highly interested in management know-hows and success stories of other stations. Given this fact, we plan to add programs, that is, "benchmarking of good S/S and F/S management cases' and sharing know-how."
◆ S-OIL Champions Club & Honors Club
S-OIL gives awards to service station managers in recognition of their excellence in service, facilities management, sales volume, and revenue. The award was introduced to encourage sound competition between service stations and share exemplary management cases, thereby improving the standards of service at our affiliated stations.
In particular, we have paved a way for service stations to grow into S-OIL’s proud partners as we increased the number of awardees in 2014 from the previous year. The ‘Honors Club’, launched in 2014 with the goal of deepening ties with partners, is contributing to laying the groundwork for shared growth as it serves as an open communication channel between top-performing S/S and F/S and the Company’s management.
Service Capability Upgrade of Service Stations and LPG Filling Stations
◆ GOODOIL Etiquette Service
The "Clean & Smile Service," a differentiated customer experience campaign which contributed to building the image of our service stations as "pleasant stations to visit all the time," is being renamed into "GOODOIL Etiquette Service" from 2016 in reflection of the evolving market conditions and customer needs.
The idea of "GOODOIL Etiquette Service" is to provide customers with exciting services readily offered by all of service station employees. Also, by addressing complaint factors in advance and carrying out customer complaint prevention activities, S-OIL will continue to upgrade the service quality at our stations to ensure excellent customer experience.
A case in point, we launched the "Clean Restroom Campaign" in 2016 as the general impression about a service station may be determined the very first time they use a clean and refreshing restroom. We also plan to undertake the "Smile in Full Blossom S/S Campaign" company-wide.
The "Smile in Full Blossom S/S Campaign" aims to encourage service station managers to pay attention to customer satisfaction with restrooms. To do so, a team of two S-OIL employees visits service stations on a monthly basis, conducting 'GOODOIL Etiquette Service' and restroom cleaning activities.
In addition, to improve the working conditions for employees at S/S and F/S who are at the front line of customer contact, the Company will share with S/S and F/S managers "success and failure cases of service station employee management." S-OIL will also operate programs to collect grievances from employees at service stations, diagnosing communication status and providing feedback.
While boosting employee's work motivation by strengthening the employee compliment system, we will open an on-line recruitment website for S/S and F/S having difficulties in hiring employees due to the high turn-over rate. S-OIL also provides service stations with an online music broadcasting service to help create a lively and happy working environment.
◆ Operation of Service Station On-site Management System
S-OIL runs three teams to enhance the service quality of our stations: YES Team provides on-site education for service stations; Encouragement Team is responsible for HR management tips and employee encouragement; and Monitoring Team investigates and coaches on services at stations.
YES Team, in particular, supports sales promotion activities to facilitate an early business establishment of newly opened service stations and promote "GOODOIL Etiquette Service" by providing tips on keeping facilities clean, thereby boosting customer revisit.
Monitoring Team, meanwhile, makes sure that the YES Team maintains training while keeping track of its service quality and coaching activities.
Encouragement Team carries out programs aimed at boosting employees' work motivation by sharing HR management tips with understaffed service stations. The compliment program for service station employee, in particular, is making a great contribution to motivating employees to increase customer service quality.
From 2015, we took the customer satisfaction level to the next level as we introduced the CS consulting programs designed to identify tasks to improve satisfaction level with our service stations. We plan to develop materials and continue to offer training programs in order to lower turnover rates at service stations and reinforce employees' service mindset.
Integrated Operation of VOC Management System
S-OIL established integrated VOC operation system in 2012 to handle all customer feedback received via customer centers and websites.
VOC handling period is set by VOC type and reflected in KPI for swift treatment. Also, satisfaction survey on VOC handling is reflected on the operation procedure for a continued improvement of the system. The handling status is notified to customers via SMS and e-mails. We also run the "Compensation for Excellent VOC Activities", an incentive system since 2015 to boost the morale of employees who handle VOCs.
The big data collected in the integrated VOC operation system are utilized to identify patterns in customer complaints. The results are shared in customer complaints analysis report and training materials for service stations.
In addition, we support service station's customer complaints response program called "See You Again Call" to service stations selected every month and share tips on how to stave off customer complaints categorized by complaint type.
In 2016, S-OIL will launch a new program analyzing consumption pattern of customers who filed complaints. Purpose of this program is to put these customers at risk of leaving for competitors under intensive care and encourage re-visit.
Performance of Integrated VOC Management System
Performance of Integrated VOC Management System : 2011, 2012, 2013, 2014, 2015 Table.
| |
2012 |
2013 |
2014 |
2015 |
| Total |
2,200 |
2,509 |
*4,836 |
2,378 |
| Bonus card, Affiliates card |
853 |
1,148 |
1,370 |
964 |
| Promotion, Gift card |
297 |
415 |
2,610 |
467 |
| Service, Transport |
709 |
689 |
660 |
769 |
| Quality |
341 |
257 |
196 |
178 |
* Increase in customer complaints in 2014 resulted mainly from a new bonus card registration process via Customer Center tightened to strengthen personal information protection and from mobile fuel voucher sweepstakes to bonus card members.
Enhance Overseas Marketing for Sustainable Growth
Refining Business
High-quality gasoline and diesel take up a very large part of S-OIL’s sales portion. And this is what adds criticality to securing firm marketing foundation in Japan and Australia, which are major export destinations for those products. In particular, ongoing restructuring of the refining industry in Japan and shutdown of aging refining facilities in Australia give us a chance to enlarge export. Aware of the opportunities presented by these evolving changes, S-OIL will cement market status in these key markets by concluding strategic partnerships with key clients in Australia and Japan.
Partnerships with leading companies in Southeast Asian countries including the Philippines, where increase in demand for oil products is expected, will also be promoted to accelerate entrance into the global market. Moreover, we signed an agreement on naphtha and diesel trade with Saudi Aramco Products Trading Company, a subsidiary of Saudi Aramco, strengthening mutual cooperative ties and adding a stable sales hub in the Middle East. Through this agreement, we have secured a reliable channel to source feedstocks for petrochemical business in more competitive terms and conditions.
Petrochemical Business
Considering the nature of petrochemical business with flagship markets differing by product, S-OIL reorganizes its product portfolio to take preemptive response to changes in target markets. We also increase direct transactions with key clients in target markets to enhance our own marketing capabilities. These efforts ensure solidifying our market dominance.
For example, with the prospect of weakening demand for Paraxylene (PX) in Korea, we have focused on expanding PX export to China, the largest PX importer. We plan to increase direct transactions with leading local clients to cement our presence in China. Our efforts to develop new markets in Japan, Taiwan, and the Americas will also continue.
As demand for benzene has surged in the US, which is the largest benzene importer and still growing, S-OIL started direct benzene supply to the largest US client in 2013 and focused on developing new local clients at the same time. We have also started to build presence in China that has been importing mass volume benzene from 2015.
Anticipating that the domestic propylene market would see supply glut from 2015 due to new facilities expansion by local competitors, S-OIL has been increasing exports to China. Going forward, we will do our utmost to develop more direct sales channels of propylene in China, thereby securing a market to supply greater volume after RUC&ODC go live.
Lube Business
S-OIL boasts the world's second largest lube base oil production capacity of 42.7 MBD in a single plant enabled by consistent investment into lubricant business it kicked off in 1981. Today S-OIL's high-quality lube base oil is exported to 36 countries.
In 2015, S-OIL generated the highest income in lube base oil industry made possible by adjusting lube base oil production capacity according to changes in the market environment and selling out all the products based on tailored marketing strategies for each country.
"S-OIL SEVEN," the premium lubricant brand launched in 2014, has enjoyed positive responses in the global market.
We have expanded customer-friendly services, participated in overseas exhibitions, held conferences for local agents and promoted other marketing activities to boost sales. As a result, S-OIL SEVEN made its way to 33 countries including China and saw remarkable sales growth in 2015. In order to meet rising demand for high-end lube base oil around the world and to secure a solid customer base, S-OIL will upgrade its production capacity and rigorously control product quality. We will also carry out intensive marketing activities in finished lubricants markets and build synergy with lube base oil business.
