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Marathon Petroleum logo

Marathon Petroleum Product

To fuel human progress by designing and developing sustainable energy solutions that transform how people move and live

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To fuel human progress by designing and developing sustainable energy solutions that transform how people move and live

Strengths

  • INFRASTRUCTURE: Vast refining & midstream network spanning 16 states
  • LOGISTICS: Integrated network of 7,800 branded outlets drives revenue
  • OPERATIONS: Industry-leading refinery utilization rate of 94%
  • FINANCIAL: Strong cash position with $10.4B in Q1 2023
  • BRAND: Recognized Speedway & Marathon retail brands with loyalty

Weaknesses

  • DEPENDENCY: Heavy reliance on fossil fuel refining business model
  • INNOVATION: Limited product portfolio diversification beyond fuels
  • TECHNOLOGY: Digital product ecosystem lags behind competitors
  • TALENT: Difficulty attracting top product & tech talent vs tech firms
  • SUSTAINABILITY: Behind in renewable product integration vs peers

Opportunities

  • RENEWABLES: Expand renewable diesel production beyond Dickinson
  • DATA: Leverage retail network data for advanced product personalization
  • MOBILITY: Develop EV charging network through existing outlets
  • INTEGRATION: Create seamless digital/physical customer experience
  • PARTNERSHIPS: Co-develop sustainable transportation solutions

Threats

  • REGULATION: Tightening emissions standards impacting core business
  • ELECTRIFICATION: Accelerating EV adoption reducing fuel demand
  • COMPETITION: New entrants in energy transition space
  • MARKET: Volatility in refining margins due to geopolitical factors
  • TALENT: Tech companies attracting potential product innovators

Key Priorities

  • DIVERSIFY: Develop renewable energy product portfolio
  • DIGITIZE: Modernize customer-facing digital product ecosystem
  • INTEGRATE: Create seamless omnichannel consumer experience
  • INNOVATE: Establish focused product innovation capabilities
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To fuel human progress by designing and developing sustainable energy solutions that transform how people move and live

TRANSFORM PORTFOLIO

Accelerate renewable product offerings across all segments

  • RENEWABLES: Launch renewable diesel product in 5 additional markets with 15% market share
  • INTEGRATION: Integrate biofuel options across 25% of retail locations with clear product messaging
  • INFRASTRUCTURE: Develop blueprint for converting 3 refineries to renewable product production
  • INVESTMENT: Secure $250M in funding for sustainable energy product R&D initiatives
MODERNIZE ECOSYSTEM

Rebuild digital product foundation for future growth

  • PLATFORM: Launch unified product data platform integrating customer, operations & supply chain
  • MOBILE: Redesign mobile app experience achieving 35% adoption rate and 4.5 star rating
  • API: Create developer platform with 15 APIs enabling partner integrations and new services
  • ANALYTICS: Implement real-time product performance dashboard for all digital touchpoints
SEAMLESS EXPERIENCE

Unify physical and digital customer journeys

  • OMNICHANNEL: Deploy connected retail experience in 250 locations with 30% digital engagement
  • LOYALTY: Increase app-based loyalty program enrollment by 40% across all retail locations
  • PERSONALIZATION: Implement AI-driven personalization engine achieving 25% conversion uplift
  • PAYMENT: Launch integrated payment system across all touchpoints with 98% transaction success
INNOVATION ENGINE

Build product development machine for rapid innovation

  • TALENT: Hire 25 product, design, and engineering leaders from top technology companies
  • PROCESS: Implement agile product development methodology with 2-week release cycles
  • INCUBATOR: Launch energy transition product incubator with 5 initiatives in development
  • PARTNERS: Establish 3 strategic technology partnerships to accelerate product roadmap
METRICS
  • Carbon intensity reduction: 30% by 2025 vs 2014 baseline
  • Digital engagement: 45% of customers using digital products monthly
  • New product revenue: $500M from products launched in past 24 months
VALUES
  • Safety & Environmental Stewardship
  • Integrity
  • Respect
  • Innovation
  • Inclusion
Marathon Petroleum logo
Align the learnings

Marathon Petroleum Product Retrospective

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To fuel human progress by designing and developing sustainable energy solutions that transform how people move and live

What Went Well

  • FINANCIALS: Strong Q1 2023 results with $12.2B in cash from operations
  • REFINING: Record 94% utilization rate driving margin improvements
  • RETURNS: Returned $5.6B to shareholders through dividends & buybacks
  • RENEWABLES: Successful Dickinson renewable diesel facility expansion
  • EFFICIENCY: Midstream segment achieved notable cost reductions

Not So Well

  • INNOVATION: Limited progress on new sustainable energy product offerings
  • DIGITAL: Customer-facing technology platforms falling behind competitors
  • INTEGRATION: Siloed approach to physical and digital customer journeys
  • DIVERSIFICATION: Excessive reliance on traditional refining for revenue
  • TALENT: Struggled to attract and retain top product development talent

Learnings

  • ACCELERATION: Must move faster on renewable product portfolio expansion
  • COORDINATION: Need better integration between physical & digital assets
  • PARTNERSHIPS: Strategic collaborations critical for rapid innovation
  • EXPERIENCE: Digital customer experience directly impacts market share
  • ADAPTATION: Energy transition requires faster product transformation

Action Items

  • DEVELOP: Create formal product innovation team with dedicated funding
  • MODERNIZE: Overhaul digital product ecosystem for omnichannel delivery
  • ACQUIRE: Strategic talent acquisition in product & technology domains
  • INTEGRATE: Implement unified data platform across all business units
  • EXPAND: Accelerate renewable energy product portfolio development
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To fuel human progress by designing and developing sustainable energy solutions that transform how people move and live

Strengths

  • DATA: Extensive operational & customer data across refining network
  • SCALE: Large physical footprint to implement AI-driven solutions
  • EFFICIENCY: Successful initial AI implementation in operations
  • INVESTMENT: Financial resources to fund AI transformation
  • LEADERSHIP: Executive commitment to digital transformation

Weaknesses

  • LEGACY: Outdated technology infrastructure limiting AI integration
  • TALENT: Limited in-house AI & ML product development expertise
  • SILOS: Fragmented data systems across business units
  • SPEED: Slow product development cycles compared to tech companies
  • CULTURE: Traditional operational mindset resistant to digital change

Opportunities

  • OPTIMIZATION: AI-powered refinery operations optimization
  • PREDICTIVE: Machine learning for maintenance & supply forecasting
  • PERSONALIZATION: AI-driven customer experience across touchpoints
  • SUSTAINABILITY: Emissions reduction through advanced analytics
  • AUTOMATION: Streamline operations with intelligent process automation

Threats

  • COMPETITION: Tech-first companies entering energy space
  • SECURITY: Increased cybersecurity risks with AI implementation
  • ADOPTION: Customer resistance to AI-powered service models
  • REGULATION: Emerging AI regulations affecting implementation
  • INVESTMENT: High costs of AI transformation without clear ROI

Key Priorities

  • UNIFY: Create integrated data platform for AI applications
  • UPSKILL: Develop AI product development capabilities
  • AUTOMATE: Deploy AI for operational excellence & efficiency
  • PERSONALIZE: Implement AI-driven customer experience