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Agrimarketing : May 2009 Supplement
12 AG BIZ Cenex Brand Revised:16 Thinking Outside Box 5/4/09 2:49 PM Page 13 didn’t realize the opportunities available by partneringwith the Cenex brand. Westbrock understood this chal- lenge and encouraged his teamto meet it head-on.An unprecedented Cenex Guy brand campaignwas developed to bring personality and relevance to the brand.While being outspent by everymajor energy company, the Cenex brand initiative increased consumer buying intentions and attracted newretailers. The energy teamalso allocated significant resources to update the Cenex retail image. The initiative includesmodern signage, electronic pumps and other features thatwill be standardized at all retail outlets. “Refreshing our assets and improving visibility of our brand, combinedwith our Cenex Guy advertising and retail support initiatives, are allworking together to growthe Cenex brand,” says Kevin Williams, Sr VP, Energy Sales, CHS. “These investments help every customerwho sells Cenex products.” CENEX GUYMAKES FRIENDS Launched in 2006, themulti-milliondollar Cenex Guy campaign promotes Cenex convenience stores, fuels, lubricants and propane using an average, everyday guywho delivers hard-workingmessages in an entertainingway. When billboards featuring the affable Cenex Guy invited consumers to call a toll-free chat line, over 57,000 people picked up the phone. The campaign also introduced the Cenex Guy using television, radio,magazine, online and sports arena components, aswell as point-of-purchase displays and truck graphics. The campaign leaves people feel- ing good about the brand.Arecent tracking survey showed Cenex unaided awarenesswas nearly double inmarketswhere Cenex Guy television and billboard advertising appeared,which correlated directly with usage of Cenex gas stations. BRAND REACHES NEWBUYERS After delivering high performance under grueling farming conditions (more on page 14) May 2009 s Agri Marketing 13 CHS teamed upwith and eventually acquiredMountainMudd to build traffic at convenience stores and cooperatives. A lways on the lookout for unique profit opportunities for its customers, CHS teamed upwith the founders ofMountainMudd drive-thru coffee several years ago. Themove gave convenience stores and cooperatives a newway to expand their retail serviceswhile capitalizing on the phenomenal popularity of “on the go” specialty coffee. CHSwas attracted toMountainMudd because it’s a proven, turnkey conceptwith reasonable start-up costs—and a great fit for convenience stores and cooperatives that have high traffic and unused parking space. Building a traditional sit-down café costs an estimated $500,000 (depending on location),while an individual 8 ft. x 8 ft. MountainMudd kiosk costs only about $100,000. Storeswith kiosks have found thatMountainMudd does not canni- balize inside hot beverage sales. In fact, those stores have seen both their inside hot beverage and gasoline sales rise. TheMountainMudd concept began in Billings,MT, a community with 16 kiosks that have sold over 10million cups of espresso blended beverages. It has become the premiere drive-thru specialty coffee franchise with about 100 locations in the U.S. The company expects to have a total of 500 units operating within the next five years at sites ranging fromsupermarkets to hospitals. Recently CHS announced theworldwide expansion ofMountain Mudd in conjunctionwith a celebration of the brand’s 15th anniversary. EightMountainMudd kiosks have been shipped to a convenience store operation in Byblos, Lebanon, and 26 kiosks are headed to multiple locations inMontreal, Quebec, including the popular La Ronde amusement park. Contracts are pendingwith potential operators in nine other countries. AM THISBUSINESS OPPORTUNITY ISANYTHINGBUTMUDDY