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THE RETAIL COMMUNITY OF THE ENERGY LP THE EXCHANGE | SUMMER 2011 Loyalty PayDay Pioneer’s first PayDay Swipe and Win Contest was a resounding success – just ask the winners! More than 322,000 instant prizes and 8 Grand Prizes were given away. Pioneer was a winner too. PayDay Swipe and Win saw a healthy 5% bump in fuel volume and helped increase Bonus Bucks member activation by 40% and member registration by more than 50%. “This was the first, so we’re very pleased,” says Julianne Trotman, Pioneer’s Loyalty Manager. “We can look forward to another PayDay Swipe and Win promotion in the future. In 2012 Pioneer will be doing more of these member stimulated activities with more targeted promotions out to our customers.” The Bonus Bucks/Eska Water “Trip to Paris” contest is another example of how we are looking to tie promotions to Bonus Bucks members. Registered Bonus Bucks members are automatically entered to win the grand prize trip to Paris when they purchase Eska Natural Spring Water 500 ml 12-pack. The contest, which runs throughout the summer, is for Bonus Bucks members only. Along with the “Win a Trip to Paris” contest there is a companion Bonus Buy: customers can buy Eska water at a greatly reduced cost when they pay with Bonus Bucks. Bonus Buys offer opportunities to redeem for products or services at lower costs or earn more Bonus Bucks on certain purchases. They’re another way that Pioneer offers greater value to Bonus Bucks members. Customers can take advantage of these promotions simply by joining Bonus Bucks. PayDay Swipe and Win Grand Prize Winners Pays Off

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Pioneer Bonus Bucks PayDay promo highlights; Contest Winners; Conservation Month; Give What You Can 2011 and many other articles showcasing Pioneer's community involvement.

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THE RETAIL COMMUNITY OF

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Loyalty

PayDayPioneer’s first PayDay Swipe and Win Contest was a resounding success – just ask the winners! More than 322,000 instant prizes and 8 Grand Prizes were given away. Pioneer was a winner too. PayDay Swipe and Win saw a healthy 5% bump in fuel volume and helped increase Bonus Bucks member activation by 40% and member registration by more than 50%.

“This was the first, so we’re very pleased,” says Julianne Trotman, Pioneer’s Loyalty Manager. “We can look forward to another PayDay Swipe and Win promotion in the future. In 2012 Pioneer will be doing more of these member stimulated activities with more targeted promotions out to our customers.”

The Bonus Bucks/Eska Water “Trip to Paris” contest is another example of how we are looking to tie promotions to Bonus Bucks members. Registered Bonus Bucks members are automatically entered to win the grand prize trip to Paris when they purchase Eska Natural Spring Water 500 ml 12-pack. The contest, which runs throughout the summer, is for Bonus Bucks members only.

Along with the “Win a Trip to Paris” contest there is a companion Bonus Buy: customers can buy Eska water at a greatly reduced cost when they pay with Bonus Bucks. Bonus Buys offer opportunities to redeem for products or services at lower costs or earn more Bonus Bucks on certain purchases. They’re another way that Pioneer offers greater value to Bonus Bucks members. Customers can take advantage of these promotions simply by joining Bonus Bucks.

Free Gas for a Year:

Apple iPad2 and case:

$1,500 in Bonus Bucks:

$1,000 Pre-paid

PayDay Swipe and Win Grand Prize Winners

Pays Off

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Understanding Customer Experience Responding Like Never BeforePioneer is inviting our customers – thousands of them – to tell us what they think of us. The mystery shopper program is being retired in favour of a new program to obtain more feedback from more actual customers who visit us anytime, day or night seven days a week. Customers will be invited, via the sales receipt and point of sale signage to tell us about their Pioneer experience through an online customer survey at www.TellPioneer.com. In exchange they’ll have the opportunity to win fabulous prizes, and we’ll learn a great deal about what our customers want, need and expect from Pioneer.

“Ten years ago it was more about standards,” says Nick Samson of BehaviorWorx, the company managing the program. Samson had a career in retail petroleum before starting one of the largest and most successful mystery shopping programs, which he later sold. With automated surveying and data analysis he saw a way to take customer knowledge to a much more sophisticated level.

“Today it is much more about the experience customers have when interacting with your brand,” he explains. “If you aren’t delivering on your brand promise, they’ll let you know.” BehaviorWorx collects and analyzes the survey data to reveal trends, gaps, customer segments – and create strategies to help us serve our customers better, influence their purchasing behaviour and increase our share of their spending.

“Before we can appeal to them more directly, we have to learn who they are and what they care about,” explains Samson. “By getting to know our customers better and grouping them into 4

or 5 segments, we’ll be able to create better marketing programs and materials for each group.

“We want to talk to all of our customers, but in different ways,” continues Samson. “The

poster that catches the eye of the mother of young children may be completely different than the one noticed by a young male, and a pick-up truck driver might notice something different again. We don’t want to miss any of our customer segments. We want to appeal to each of them.” But first we need to know who they are, then we can develop strategies from there.

“The beauty is that you have actionable feedback quickly,” says Samson. “As we learn about them and make changes, we’ll be able to see the response and know whether our changes are working. We’ll also be able to give site level

information and provide each location with simple actionable report that highlights the key drivers that cause people to spend money at their site.”

It’s a very exciting step,” says Geoff Hogarth, Pioneer’s Director of Marketing. “The voices of our customers will be heard in a way that simply wasn’t possible until now, and that is going to help us become more valuable to them.”

“The voices of our customers will be heard in a way that simply wasn’t possible until now....”

Geoff Hogarth

More satisfied customers . . . Buying more . . . More often

Pioneer Energy – It’s official May 1st marked the official launch of our new brand identity at head office with the changeover of our name to Pioneer Energy on head office business collateral. Our new name reflects a change in vision that both honours our proud heritage and embraces our aspiration for the future. In the upcoming year we will be updating signage at the Pioneer sites to reflect our new brand identity.

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THE RETAIL COMMUNITY OF

Starting from the left students Mohamed Patel, Rajleen Atwal, Abbas Abdelkazem and Wesly Doxtator perform maintenance on the tank holding salmon fry in their classroom at Lake Avenue Public school.

Conservation Day 2011It starts in the classroom…The annual Pioneer-sponsored Conservation Field Trip for Hamilton school children took place on June 2nd at Lowville Park in Burlington. The event caps the students’ involvement in the Lake Ontario Salmon Restoration project, an initiative of the Ontario Federation of Anglers and Hunters (OFAH).

Prior to releasing the salmon fry into Bronte Creek during the field trip, the students spent months raising them in their classrooms, playing an important role in helping this extirpated species. If you aren’t familiar with that term, just ask one of the students. They’ll tell you it means “locally extinct.”

“All the students in my room can tell you what it means and exactly why we are doing this,” explains Andrea Tyleman a Grade 8 science teacher at Lake Avenue Public School in Hamilton. We approached Ms. Tyleman to get a teacher’s perspective on the value of the program to school children.

“It’s a very valuable program because it makes the students feel like they are doing something to help bring the ecosystem back into balance,” says Ms. Tyleman. “It raises their environmental awareness and it also helps to instill in them a sense of global citizenship. We want the kids to think beyond themselves and this causes them to do so.”

As for the Pioneer Conservation Day field trip? “That’s the most exciting part for them,” acknowledges Ms. Tyleman. “They get to set the little fish free and they know they’ll end up in Lake Ontario. They also build bird and duck houses and reconstruct habitat. It’s a great day for the students.”

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Give What You Can When a child is sick…all that matters is that the medical expertise, equipment, training and knowledge are the best they can possibly be. That’s why your contribution to the Give What You Can campaign are so important.

A great big THANK YOU to our generous customers who just keep saying “Yes” to supporting the Give What You Can (GWYC) campaign! A special thank you to all Pioneer staff who worked extra hard and found creative ways to ensure the campaign was a success.

Together we raised $92,400 at Pioneer sites. Combined with a gift of $30,600 from Pioneer Energy, the total donation to the designated children’s hospitals of Ontario is $123,000. Wow! Here’s the breakdown:

“… we care for the sickest, most critically injured children and the funds raised through Pioneer helps to ensure that we have the specialized equipment and facilities we need to care for children…Thank you Pioneer …”

Jennifer Laughton, McMaster Children’s Hospital

Total contributed to Ontario Children’s Hospitals by Pioneer and our customers since 1985 ―$1,223,000.

We Salute Recycling NiagaraThe Region of Niagara has become the first region to offer Pioneer and other retailers free curbside recycling pick-up. Pioneer’s 10 area sites will now be able to recycle two 96 gallon roll-bins of bottles, cans, plastic and paper weekly. We salute the Region of Niagara for this forward-looking move. It greatly simplifies the launch of a recycling program, which usually involves contracting with several haulers at a great expense.

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THE RETAIL COMMUNITY OF

Sites 5, 21 and 22 – BrantfordThe three Brantford site managers Mike Brown, Fred Brown and Randy Kitchen, got together to come up with a strategy to raise money in tough economic times. Their strategy: keep it positive and ensure that employees and customers feel good about the campaign.

The retailers bought lunch for employees when shift donation goals were reached. “We wanted employees to feel good about contributing,” says Fred. “It isn’t easy asking for donations in tough times. They worked at it and kept it very

positive. We want our customers to feel good too, whether they donate or not so we’re careful to thank them.”

Along with Aubrey Dinsmore at Site 84 in Paris, they offered customers a chance to win a barbecue in exchange for making a donation. “Thanks to Lowe’s and Pioneer for contributing the barbeque and helping us make this happen,” acknowledges Fred. The four sites raised a total of $9,018.77 for the GWYC campaign.

Site 233 – GuelphA fundraising goal was set for each shift based on raising $10 per hour in donations. Staff who reached the shift goal received a bonus of an hour in pay. Congratulations to Valarie Van Twout, Kristie Jackson-Haennel and Matthew Livingstone for hitting the mark for the kids and to Cathy Park who hit it twice!

Site 203– Peterborough Donation Wall

t Retailer Vlad Gretchanliiski and the staff at Site 203 raised an amazing $5,885.15 and they have their wall of coolers decorated with donor cards to prove it! They raised the most out of all participating Pioneer sites. Great job!

Site 241 -- Hanover

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Challenged to don this special outfit for a day if staff raised $5,000 for Children’s Hospitals – Give What You Can campaign, Rick Barrie happily “dressed-up” on April 28th (and made the local newspaper).

Here are some of the ways supported Give What You Can:

Pioneer Sites

“You can’t be afraid to ask because it’s for the kids.”

Fred Brown, Site 21t

Customer Max Cole with the barbecue he won at Site 21 for supporting Give What You Can.

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Hot pink dress from “A Little Bit of Everything”

– $10.99

Size 11, black lace-up pumps

– $12.99

The fun in raising $5000 for Ontario Children’s Hospitals

Priceless!

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Japan ReliefOnce again our customers have shown tremendous generosity in the face of incomprehensible tragedy far from home. In response to the Japanese earthquake and tsunami, our customers donated $22,852.79 for Japan Relief. Pioneer Energy contributed an additional $17,147.21. Together with our customers we contributed $40,000 to the Canadian Red Cross – Japan Earthquake/Asia-Pacific Tsunami fund.

Condolences to Caledon’s Leitao Family Sadly, Peter Leitao, retailer at Esso Site 832 in Caledon passed away in February after a lengthy battle with cancer.

“Peter was an exceptional operator and a kind and funny man,” says Kelly Nelson, District Manager. “Peter turned the leased site around in record time. We will certainly miss him and the professional way he ran the site.”

Maria Leitao, who stepped in during her husband’s illness, will operate the site along with her daughter and son-in-law. We wish them well.

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Directors of Food For Life, a Pioneer-sponsored charity, proudly show off the organization’s new truck. Food for Life outreach programs bring fresh perishable food to people in need in Oakville, Burlington, Milton, Acton and Georgetown. The new truck provides reliable transport, plus refrigeration for food safety.

Site 106- DelhiRetailer Debbie Brown picked up the business improvement award from the Delhi District Chamber of Commerce for Pioneer’s renovation and redevelopment of the site including the addition of a new Snack Express convenience store.

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Debbie Brown of Site 106 shows off the Business Improvement Award for the redevelopment of the Delhi Pioneer.

Site 238 - WellandRetailer Yehia El-Ahmar and his team at South Pelham Pioneer for receiving the Welland Tribune’s Readers Choice Award.

Congratulations to…

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News from…The Merchandising Team

The Merchandising and Loyalty department has added a new Category Manager, with expertise in tobacco

marketing. Eric Bondy joined the merchandising team on June 13th. He comes to Pioneer with significant experience in the tobacco retail industry gained from his 7 years with Imperial Tobacco. As a result, product responsibilities have been realigned between Eric and Adeline Finlay who is the group’s existing Category Manager.

A much needed new role of Merchandising Coordinator with the focus on merchandising at the site level has also been created. Pearl Prieur has accepted the Merchandising Coordinator position. Together these changes will help us manage our growth and redevelopment, refocus on key categories, strengthen the presence of Pioneer’s merchandisers in the field, and ensure a continued strong convenience offering for our customers. Congratulations to Pearl on her new role and best wishes to Eric upon joining the Pioneer team.

Real Estate DevelopmentIt has been a very busy spring for the real estate department working with local government planning departments on approvals for Pioneer’s new developments and redevelopments. They’re going to be even busier this summer when the rain finally stops and construction begins. Stay tuned for Pioneer Energy’s new site reveal in the fall.

Pioneer Sponsors:World Conference on Breast CancerPioneer car wash locations in Hamilton were using pink soap from June 7th – 11th to coincide with the 6th World Conference on Breast Cancer. Pioneer was a sponsor of the conference which brought breast cancer survivors, family members, support

groups, health care professionals, doctors, and researchers together from more than 80 countries around the world to address the concerns of women and men who deal with the realities of breast cancer.

The conference strives to increase awareness and advance action on breast cancer through knowledge exchange, advocacy and global networking. In addition to the sponsorship Pioneer supported the conference by selling pins at sites.

Hamilton International Air Show – June 18th & 19th

Aviation fans rejoiced at the return of the Hamilton International Airshow after a 10-year hiatus with help from show sponsors including Pioneer. The Father’s Day weekend event featured more than 40 vintage aircraft including many rare World War II planes from as far away as Texas, and a mock dogfight between replica WWI aircraft. The event was presented by the Canadian Warplane Heritage Museum, Canada’s Flying Museum.

Windsor International Air Show – September 10th & 11th

The Windsor International Air Show features an all-star lineup of air performers including the SnowBirds, Canadian Skyhawks Parachute Team, Will Ward in the “Red Eagle” MiG-21 and many more. Pioneer is also a sponsor for this event and 6 sites around the Windsor/Chatham/Tecumseh area will be selling tickets to the event at a discounted rate for Bonus Bucks members.

Eric Bondy

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THe excHangeSummer 2011 EditionA publication for Pioneer Retailers and Head Office employees.

Send us your Pioneer stories.

Editor: Kim Hoang [email protected]

Tel: (905) 639-2060 Fax (905) 639-2490

© 2011 Pioneer Energy LP. All rights reserved.

www.pioneer.caAfter many years of offering the Pioneer Auto Club program, it is coming to a close. Thank you to all our members who signed up for “Pay-As-You-Go” and “Platinum” memberships. Those memberships will continue to be honoured by our roadside assistance partner Dominion Automobile Association (DAA). Pioneer Auto Club members will continue to receive the full services and benefits of the Pioneer Auto Club program for the remainder of their membership term.

Even though we have ended the Pioneer Auto Club program, we are always looking at new ways to optimize the Pioneer experience for our customers and will continue to do so in ways that promote Pioneer Energy’s strategic goals and vision.

Please direct any questions you or your customers may have to Pioneer Auto Club customer service at 1-866-590-5752. Thanks again for your support of the Pioneer Auto Club over the years.

Pioneer Auto Club Retires

DeGroote School of Business Celebrates Pioneer DonationThe DeGroote School of Business celebrated Pioneer Group’s gifts to the school and paid tribute to Murray Hogarth, Executive Chairman of Pioneer Group at a reception at the Ron Joyce Centre on May 19th. The gifts totalling $312,000 were announced in Fall 2010 issue of the Retailer ExPress.

The donation will finance the new Pioneer Petroleums Ontario Graduate Scholarship, which will be given to a masters or doctoral student at McMaster, with preference to students conducting entrepreneurial research. Ontario Graduate Scholarship awards are worth $15,000 annually. The balance will be used to support development of the Ron Joyce Centre at the DeGroote School of Business campus in Burlington.

“We are pleased that Pioneer Petroleums continues to invest in McMaster students through its ongoing generosity to the university,” said Patrick Deane, President of McMaster University. “It is particularly gratifying to receive support from a hometown company that has invested so extensively in the communities where they have so successfully built their business.”

“Successful businesses have an obligation to give back to the communities that supported their profitable growth — to balance the life cycle of needs for both them and their community,” explained Murray Hogarth from the lectern of the new Pioneer Petroleums Lecture Theatre.

Roam Expands On-lineRoam Magazine, Pioneer Energy’s Ontario travel publication now has a new refreshed look and a companion website. Check it out at www.roammagazine.ca.

In support of the new issue Roam is running a contest. Customers can submit their favourite barbecue recipe online before June 30th for a chance to win a Crown Verity Gas Barbecue (approximate retail value is $2,500), or one of three $100 Pioneer Energy gift cards!