According to data submitted to the general shareholders’ meeting Orlen Group in 2023, it allocated PLN 578.78 million for marketing and sponsorship, which, compared to PLN 410.83 million, means an increase of 40.9%. This dynamic – as in the case of sponsorship and public relations costs – is partly due to the fact that last year the annual expenses in this regard of the PGNiG group were taken into account, the acquisition of which was finalized by the company in November 2022.
Marketing and sponsorship expenses also increased on a comparable basis: in 2022, their share in the total revenues of the Orlen group was 0.2%, and a year later 0.231%. This means an increase of 15.5%.
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What was this money used for? In his report to shareholders, Orlen calculated that: for the production of ATL and BTL advertisements, purchase of advertising space in the media, activities for loyalty programs (especially in the area of e-commerce and mobile applications), event projects, Vitay loyalty program and marketing research.
Last year, Orlen once again ran a holiday promotion with a 30/40 groszy per litre fuel price reduction for Vitay programme participants, supported by adverts featuring our national team players (in this year’s campaign, the discount was increased to 35/45 groszy). In turn, in the autumn, it ran an image campaign under the slogan “We are changing for Poland”, mainly concerning the terms of the merger with Grupa Lotos (the advert stated that “Lotos has not been sold”).
With regard to CSR activities, – as Orlen describes – “in 2023, the emphasis was placed on the implementation of projects related to social support and development, health promotion and protection, promotion of security in the broad sense, as well as protection of the natural environment.”
Plus PLN 120 million for sponsorship
Orlen Group Expenses they sought sponsorship last year. PLN 386.22 million, after an increase of 44.8 percent from PLN 266.76 million a year earlier. Their share in total revenues increased from 0.13 to 0.154 percent.
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Orlen emphasized in the report that The most important project in this area was the cooperation with the Formula 1 team Scuderia AlphaTauri Robert Kubica. – Sponsoring the F1 team was an important marketing and communication platform in the Czech and German markets, where it supported the rebranding process of Benzina and Star stations, and in Slovakia and Hungary, where it supported the launch of new facilities. Thus, it contributed significantly to the implementation of the Orlen2030 Strategy, which presupposes the expansion and dynamic development of the retail segment, based on the expansion of the commercial network and a significant expansion of the offers – he stressed.
The company has also been the main sponsor of the Polish Olympic Committee and the Polish Paralympic Committee for years, and with the purchase of part of the assets of the Lotos Group, it became the main sponsor of the Polish Football Federation (at the beginning of last year the contract was extended for four years) and the Polish Ski Association (in addition, in the autumn of last year it became the main sponsor of the ski jumping complex in Oberstdorf, where, among other things, the Four Hills Tournament takes place).
The company also has sponsorship agreements with more than 70 clubs (led by Wisła Płock) and several dozen port workers, including disabled workers. Sponsorship also covers cultural institutions, among others Grand Theatre – National Opera, Fryderyk Chopin National Institute, Royal Castle in Warsaw and National Museums in Warsaw and Poznań.
Double for PR
On the other hand Last year, Orlen Group spent PLN 51.86 million on public relations and social communication, almost double the previous year (PLN 25.96 million). The share of these expenses in total revenues increased from 0.013 to 0.021 percent.
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The company calculated that it communicated its Strategy 2030 and major investments, including: through editorial cooperation with the media, development and creation of materials (infographics, animations, films) for social media and public opinion polls (CCS, SMR). Events with the participation of members of the company’s board of directors, study trips and press briefings were also organized “within the framework of communicating new business projects, broad communication of projects related to the development of alternative fuels within the Orlen Group, hydrogen strategy, H2 Academy.” Internal communication included, among others: TV Studio GO!, printed magazine for employees “MGO!: and intranet.
Costs classified as representative also increased significantly – from PLN 2.93 to PLN 6.65 million. – They were mainly related to the organization of business activities of Orlen representatives during industry events in Poland and abroad, used to communicate the updated 2030 Strategy in early 2023, present the company’s position on the challenges related to energy transformation and security in the Central and Eastern European region, as well as the implementation of investment projects, maintaining existing business relations and building new business relations.
In total, Orlen Group’s expenses for marketing, sponsorship and public relations reached PLN 630.64 million in 2023, which, compared to PLN 436.8 million in the previous year, means an increase of 44.4%. Its share in the company’s total revenue increased from 0.33 to 0.385 percent, or 16.7 percent.
However, expenses for management consulting (from PLN 68.58 to PLN 73.19 million) and legal services (from PLN 54.76 to PLN 55.01 million) increased much less.
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In February this year, almost all members of the previous board resigned from Orlen’s board of directors, including: Chairman Daniel Obajtek (who was elected to the European Parliament on the PiS list in June) and Adam Burak, who was responsible for marketing and communications. As we reported in the spring, the new board of directors does not have a separate member for marketing and communications.
