British Gas has set up a new division to oversee its push into
areas that could include products and services as diverse as savings
accounts and home security.
Centrica Financial Services (CFS), which launched internally this week,
will explore any areas into which British Gas might take its brand or
the Goldfish brand in the future.
Simon Waugh, group marketing director and managing director of the new
division, said it will look at ’any business area that adds significant
value to the customer’.
At least two new financial products are expected over the next six
These are likely to be ventures with third parties, similar to the
Goldfish credit card, which British Gas jointly owns with the Household
’While the new products and services will initially add value to our
energy customers, we hope to build businesses which generate real
revenue streams,’ said Waugh.
Waugh confirmed that new products will be developed under either the
British Gas or Goldfish brands, depending on which was the most
Each initiative will get a ’significant’ marketing budget.
The division will have a marketing budget of around pounds 25m and Waugh
has appointed a team of four unit heads. Mike Parsons, presently
managing director of Goldbrand Developments, becomes director of banking
products, as well as CFS’s overall marketing director.
Rob Leonard, director of public gas transportation, becomes director of
insurance products at CFS; Paul Hallas, Centrica’s head of commercial
products, moves to director of direct-response products; while Doug
Richards, Centrica’s finance director, fills the same role for CFS. The
division will also recruit experts in strategic marketing.
All British Gas’s ’non-energy’ business activities are currently being
moved away from the existing businesses - British Gas Trading, British
Gas Services and Home Energy Centres - under the new division’s
This includes relationship marketing, a burning priority for British Gas
which faces losing up to 40% of its customers as the home-energy market
The move partly explains British Gas Trading’s decision to abandon its
planned customer loyalty points scheme. Carlson, Evans Hunt Scott and
Tullo Marshall Warren had been shortlisted to run a pounds 30m programme
This article was first published on Marketing