STREET WISE
Cleanliness and competition

Immediately after PTT signed a deal to buy out all 147 Jet petrol stations, consumers began voicing concerns.
They are not worried about PTT's financial performance. Now that marketing fees are low, the expansion of its network will alleviate losses. Last year, PTT lost Bt1 billion in the retail oil business. However, it has earned much more from other businesses. Consumers are also not worried that PTT will strengthen its dominance in the retail oil business, given that the new stations will expand its network. What worries them is whether this deal will affect the cleanliness of Jet's toilets. Since it entered into the retail oil business in 1993, ConocoPhillips has been successful at drawing huge traffic to Jet stations with Jiffy convenience stores and clean toilets. Located on heavily trafficked main highways, the Jet strategy worked wonderfully. While stores at other stations offer a selection of ordinary items found anywhere, Jiffy offers fresh food. Nearby, a coffee corner allows commuters to sip hot and cold beverages and relax. And whenever they feel the call of nature, travellers are not reluctant to stop at the nearest Jet station because they know the toilets will always be spotless. No wonder that these consumers are concerned whether this will change after the buyout deal. Judging from PTT president Prasert Bunsumpun's comment that the Jet and Jiffy brands will be in use for two years and that a new company will be set up to manage the Jet stations, he may have anticipated this groundswell of popular opinion.
achara_d@nationgroup.com
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