Branding Proposal

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The key takeaways are that Nipco is proposing a co-branding agreement where it will rebrand retail outlets of its partner marketing companies in Nipco's colors in exchange for regular fuel supply and other benefits. This will help Nipco expand its brand presence while benefitting its partners through guaranteed supply and margins.

The benefits of co-branding for Nipco include expanding its brand presence. Benefits for partners include uninterrupted fuel supply at affordable prices with a 10 kobo discount per liter, as well as branding of one of their trucks in Nipco colors. Partners can also enjoy allocation from government depots.

Nipco's obligations include regular fuel supply to co-branded outlets according to their sales potentials, rebranding outlets in Nipco colors, providing signage with Nipco branding, fast loading services, and conducting inspections to ensure safety and quality standards.

Branding Proposal

Background Information:

Nipco Plc started commercial operation July 2004 with a larger


percentage of independent marketers as its major customers. In the
last two and half years, we have effectively served our customers with
all the three grades of white products. As a depot operator we are
successful today. Leveraging on this success, there is the need for us
to transit into the next phase of our business by fully identifying with
our core partners that own retail outlets by coming into a relationship
that involves co –branding their retail outlets.

Our Objective:

To identify strategic retail outlets that can pull volumes across the
country for co – branding.

Our Mission:

To brand the identified Retail Outlets in Nipco home colors of red,


white and green only in strategic locations.

Concept:

The Co – branding concept we are adopting is such that our partner


(Marketing Company) will retain their name to enable them enjoy their
allocation from the Government depots. The physical structures
including dispensing pumps at the retail outlet will be painted in Nipco
brand colors of Red, White and Green while the gibbet signage will
carry Nipco logo and the inscription: ‘’Nipco Fuel Partner’’

Benefits:

• Uninterrupted supply of products to co-branded retail outlets in


consonance with the outlets’ sales potentials at affordable price
which will translate to reasonable margin for our partners.
• A Ten Kobo (10 kobo) discount allowed is set aside per liter for
the marketer payable on quarterly basis by crediting marketer’s
accounts with Nipco.

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Loading Procedure:

Loading procedures will be:

• Strictly self collection


• Loading within 24hrs upon confirmation of payment
• All other Nipco depot internal procedures and conditions apply.

Obligations:

Nipco:

• Regular supply of products to the retail outlets in conformity with


the sales potentials of the outlet.
• Re Brand the retail outlet with our brand colors at a cost to be
borne by us.
• Gibbet signage of the retail outlet to be erected by our
contractor for uniformity.
• All gibbet signage will carry our logo and ‘Nipco Fuel Partner’.
• Nipco to ensure fast loading services to such outlet customers.
• To conduct routine / adhoc inspection exercise to ensure safety
and quality are met at all time within the contract period.

Partner:

• Maintain a current DPR license to cover the period before co-


branding.
• Provision of a valid past sales record.
• Payment into our collection account before loading
• Partner to brand one truck or more if available in Nipco color.
• Partner to sign a co – branding agreement with Nipco.
• Must conform to the standard/specifications of petrol stations
under state laws.
• Provide 100% right to Nipco team to measure/haulage the
underground tanks or meter-read the dispensing pumps at any
time during the period of contract.
• Once agreement is singed by both parties, only marketers or
Nipco branded marketers truck should be found in the station

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While we request that you fill in the attached questionnaire and return
same, sign the attached articles of agreement, thank you and
congratulations on being chosen as one of the pioneer Nipco Fuel
Partner.

Yours Faithfully,
Nipco Plc

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