Page 20 - CPC 2018 Annual Report

18 CPC Corporation, Taiwan 2018
MARKETING CPC PETROLEUM PRODUCTS KEEPING TAIWAN ON THE MOVE:
CPC’s marketing of refined petroleum products in its home territory is primarily focused on the transportation sector – specifically for gasoline, diesel, fuel oil and aviation fuel. In 2017 sales of those products in Taiwan totaled 20.694 million kiloliters in volume and generated revenue of approximately NT$369 billion – the latter sum a significant increase over 2016. Automotive gasoline accounted for the largest share at approximately 51.6%, followed by diesel at about 23.6%, fuel oil at about 16.9% and aviation fuel at around 7.9%.
Taiwan’s internal market for refined petroleum products is divided chiefly between CPC and the Formosa Plastics Group and competition between the two has grown increasingly intense. CPC has worked hard at leveraging the advantage of its marketing network, and to protect its market share, by consolidating its gas station network: of the 2,490 sites operating in Taiwan at the end of 2017, 610 were directly run by CPC, 5 were jointly run by CPC and other parties, and 1,371 were privately-owned CPC franchises. These 1,986 CPC- branded locations give CPC an unbeatable advantage; their sales as a part of the total market volume break down as gasoline 81.8%, diesel 79.1%, fuel oil 95.1% and aviation fuel 57.3%, the overall market share being 80.4%.
In 2017 total domestic sales of petroleum products was
20.694
Total sales revenue
CPC FUELS KEEP THINGS MOVING ALL AROUND TAIWAN
CPC operates aviation fueling stations at all of Taiwan’s airports – Songshan, Taoyuan, Taichung, Hualien, Taitung and Kaohsiung as well as offshore at Kinmen, Matsu and Magong. Around the coast, it has marine bunkering stations for both local and international vessels at Kaohsiung, Keelung, Suao and Taichung ports.
As of end-2017 CPC operated 14 product distribution centers, located country-wide at Keelung, Shimen, Hsinchu, Taichung, Taichung Harbor, Wangtian, Minxiong, Tainan, Fengde, Qiaotou, Suao, Hualien, Magong, Kinmen and Matsu. These depots supplied filling stations in their surrounding areas with a total of 23,339,000 kiloliters of product over the course of the year. Three chemical analysis centers in Keelung, Taichung and Kaohsiung, plus seven testing laboratories, were charged with testing products for quality control and altogether handled 29,583 samples during the year.
CPC GAS STATIONS ARE SUCCESSFUL MULTI- SERVICE OPERATIONS
51.6%
Diesel fuel
23.6%
Fuel oil
16.9%
Aviation fuel
7.9%
NT$
369
million kiloliters
billion
Gasoline
Maintaining market leadership requires maximizing customer satisfaction, so CPC has set as the keynote of its gas station operations a standard of service that differentiates them from their competitors. All CPC directly-operated filling stations throughout Taiwan provide all-round, high-level service – washrooms are updated and kept clean; staff employ a customer-experience management approach, actively promoting the VIP card system and applying proven customer relations management principles. Faced with the need to reduce operating costs and resolve manpower- shortage issues, CPC has taken the lead in introducing self-service fueling using credit cards; and also requires all filling stations under its flag to increase revenue from