A unique, for our country, affiliate program to transfer nearly half of KazMunaiGas fuel stations to private management launched in July 2015. The program faces a lot of tasks. On the one hand, it aims to support small businesses in regions of the country and contributes to the creation of an efficient private sector, the development of public-private partnership (PPP).
The program is being conducted as part of the transformation of the group of companies of Samruk-Kazyna and its main purpose - to optimize costs and support for small and medium-sized businesses. The main principle of the new CODO program stands for “Company Owns - the Dealer Controls.” KazMunaiGas Onimderi LLP is introducing the international experience in the field of management of service stations. The fuel stations are not privatized but owned by the company, the sole supplier of petroleum products remains KazMunaiGas Onimderi LLP.
A similar scheme is being implemented in the U.S. at Exxon Mobil, Shell, Chevron; in Europe at Lukoil, Rompetrol; in Russia at Lukoil, Shell and others.
The company handed over its profitable with stable income fuel stations, but where the average income was less than the average for the region. Also the company hands over the remote fuel complexes. The entrepreneurs are also responsible for compliance with the corporate style of KMG, cleaning its territory, trade halls et cetera, besides the sales of petroleum products. At the same time control over the quality of petroleum products at all stages was preserved: analysis of acceptance of oil in tank wagons to KMGO tank farms, analysis of oil in farm tanks, analysis of the products arriving in tanks to the fuel station.
Today, some 110 entrepreneurs are successfully running 150 KazMunaiGas fuel stations in different regions of the country.
Since the beginning of this year KazMunaiGas Onimderi LLP has been actively developing a franchise program “DODO,” which stands for - Dealer Owned - Dealer Operated in other words Partner owns - Partner controls. In the future this should be the main direction of development of the KMG fuel stations. The main goal of the program is to enable the fuel station owners to become part of the KazMunaiGas network - that is, operate under the brand of KMG, which is well recognized in Kazakhstan, win the trust of consumers, and sell petroleum products.
The program has a lot of tasks. On the one hand, it aims to support small business in the regions and will contribute to the creation of an efficient private sector, the development of public-private partnership.
Currently, the brand “KazMunaiGas” is easily recognized by the public and has a large customer base among businesses and individuals that will allow partners to generate revenue using this brand name.
The main goal of the program is to enable the fuel station owners to operate under the brand “KazMunaiGas,” to sell petroleum products via cash or cashless payments and to more effectively manage their own existing fuel stations.
In other words, the project aims to support both individual fuel stations as well as small private fuel station networks, which are currently experiencing difficulties in the supply of petroleum products, and also the project enables them to continue their activities in the marketplace retaining their jobs.
In addition to all the benefits for small businesses, the program has a positive factor for the country on the whole, including reduction of shadow turnover of petroleum products, improving the quality of roadside service and petroleum and paying more taxes.
The company stresses that customers will not see the difference in quality of petroleum products or at fuel stations by means of service standards for instance at the stations managed by partners that are controlled by KMG except for small exterior differences. Partners will be given a specially designed uniform in the corporate style. KazMunaiGas Onimderi will ensure a stable supply of petroleum products at the station of its partners, to attract customers for cashless sales. Marketing programs will also be implemented including the promotional activities and events as part of the KazMunaiGas Club. Also, KMG will provide the controlling functions for Partners’ work, both in quality of oil products and the technical conditions at the stations.
For more information about the program please call: +7 (7172) 97-42-94, or email at: email@example.com.