Situation:

Valero Cibolo Coffee brand has been an ever increasing part of the Valero retail store business. Valero went through a 2 year process rebranding all there retail locations to have the same feel and look at each retail center. One of the main focal point at each of the new stores was the coffee bar.

Challenge:

Increase the sales volume of their Cibolo Mountain Blend Coffee.

Solution:

By utilizing primary research provided by Valero Energy Corporation, coupled with secondary Simmons Crosstab and Scarborough qualitative research, HTM, was able to determine the core and secondary target audiences of Valero Energy Corporation’s coffee consumer. To determine the effectiveness of advertising on the sales volume of the Cibolo Mountain Coffee brand, a media mix of Outdoor, Morning Drive Traffic Report Sponsorships on TV and Radio, along with signage at the store level was utilized in key markets over a 2-month period (October-November 2008). Other markets had only pump topper signage and in-store signage.

Results:

After the completion of the 2-month campaign was a 5% increase of Cibolo Mountain Blend Coffee sales from year-to-year in the key markets, while markets utilizing only store-level signage remained flat or decreased in volume. The positive result of advertising in the key markets was beneficial for Valero Retail Marketing to request funding for their 2009 advertising budget at a substantial higher level.

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