Winning in Convenience Retail
This presentation is the property of its rightful owner.
Sponsored Links
1 / 34

Winning in Convenience Retail PowerPoint PPT Presentation


  • 190 Views
  • Uploaded on
  • Presentation posted in: General

Winning in Convenience Retail . Kelly Marr Group Director, Commercial Strategy NRS, Small Store Channel Strategy & Marketing. [email protected] Winning in Convenience Retail 2014. Clinton McKinney Group Director Category Advisory. Today's Discussion.

Download Presentation

Winning in Convenience Retail

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Winning in convenience retail

Winning in Convenience Retail

Kelly Marr

Group Director, Commercial Strategy NRS,

Small Store Channel Strategy & Marketing

[email protected]


Winning in convenience retail 2014

Winning in Convenience Retail 2014

Clinton McKinney

Group Director Category Advisory

Confidential


Today s discussion

Today's Discussion

  • State Of The Industry

  • Our Approach To Shopper Solutions And PITA

  • 2014 CR Strategic Imperatives

  • Innovation

  • Key Program Summary

  • Tools/Resources For Winning

  • Summary

Confidential


Convenience retail role of the channel

Convenience Retail: Role of the Channel

2

3

1

MISSION

ROLE

OBJECTIVE

To Be A Total Beverage Solution Provider To Our Customers, Resulting In Category Growth Leadership And System Profit Contribution

“One Voice”

Drive Consumer Recruitment And Consumer Brand Preference Through Immediate Consumption And “Ice Cold Refreshment” Occasions

“Ice Cold Refreshment”

Increase Our Volume, Profit And Share, And Become Our Customers’ Most Valued Supplier

“Most Valued Supplier”

Confidential


The state of the convenience retail industry

The State of the ConvenienceRetail Industry

Confidential


The future is bright in convenience retail

The Future Is Bright In Convenience Retail

10K New Stores Opened in Last 5 Years

170MM More Trips Made To C-store in Past Year

$5.5B in Incremental in Store Sales in Past Year

Source: Nielsen TD LINX; NPD Convenience Store Monitor

Confidential


Many c hallenges r emain

Many Challenges Remain

Pressure on Gas (Cost, MPG, Habits)

Unemployment Slow to Improve

Consumer Confidence Improving, But A Long Way To Go

Source: Nielsen TD LINX; NPD Convenience Store Monitor

Confidential


Competition for convenience

Competition for Convenience

Top 5 in Total Stores

Top 5 in Store Growth

13,400 New Stores

Mass Merchandisers

Grocery

C-Stores

DrugStores

Dollar

Stores

% of U.S. Store Count Expansion in the Top 20 Expansion Chains – 2012 vs. 2007

Source: Nielsen TD LINX;

Confidential


Competition for convenience1

Competition for Convenience

Top 5 in Total Stores

Top 5 in Store Growth

13,400 New Stores

Mass Merchandisers

Grocery

C-Stores

DrugStores

Dollar

Stores

% of U.S. Store Count Expansion in the Top 20 Expansion Chains – 2012 vs. 2007

Confidential


Competition for convenience2

Competition for Convenience

Top 5 in Total Stores

Top 5 in Store Growth

13,400 New Stores

Mass Merchandisers

Grocery

C-Stores

DrugStores

Dollar

Stores

% of U.S. Store Count Expansion in the Top 20 Expansion Chains – 2012 vs. 2007

Confidential


Food service on fire

Food Service On Fire

Confidential


Cold vault under pressure

Cold Vault Under Pressure

44%

Trips Where A NARTD Bottle/Can Beverage Is Purchased

Trips For Beer

5%

Source: Nielsen TD LINX; NPD Convenience Store Monitor

Confidential


Cold vault under pressure1

Cold Vault Under Pressure

44%

Trips Where A NARTD Bottle/Can Beverage Is Purchased

Trips For Beer

5%

Source: Nielsen TD LINX; NPD Convenience Store Monitor

Confidential


Changing shopper landscape

Changing Shopper Landscape

Key CR Shopper Segments That Are Growing

  • 24% Have HHIncome <$25K (+1.5)

  • 9% are Students(+2.2)

  • 21% are 25-34Years Old (+1.3)

  • 46% are Female(+1.3)

Source: NPD Conventional C-store Demographics

12 ME March 2013

Confidential


Pita the framework for driving category value

PITA – The Framework for Driving Category Value

P

I

T

A

x

x

x

SHOPPERS IN YOUR STORES

SHOPPERS BUYING THE CATEGORY

TIMES THEY PURCHASE

AMOUNT THEY SPEND

Store Households

(Category) Penetration

Trips per Household

Net $ per Trip

Confidential


Pita the framework for driving category value1

PITA – The Framework for Driving Category Value

P

I

T

A

x

x

x

SHOPPERS IN YOUR STORES

SHOPPERS BUYING THE CATEGORY

TIMES THEY PURCHASE

AMOUNT THEY SPEND

Store Households

(Category) Penetration

Trips per Household

Net $ per Trip

Confidential


Pita the framework for driving category value2

PITA – The Framework for Driving Category Value

P

I

T

A

x

x

x

SHOPPERS IN YOUR STORES

SHOPPERS BUYING THE CATEGORY

TIMES THEY PURCHASE

AMOUNT THEY SPEND

Store Households

(Category) Penetration

Trips per Household

Net $ per Trip

Confidential


Pita the framework for driving category value3

PITA – The Framework for Driving Category Value

P

I

T

A

x

x

x

SHOPPERS IN YOUR STORES

SHOPPERS BUYING THE CATEGORY

TIMES THEY PURCHASE

AMOUNT THEY SPEND

Store Households

(Category) Penetration

Trips per Household

Net $ per Trip

Confidential


Pita the framework for driving category value4

PITA – The Framework for Driving Category Value

P

I

T

A

x

x

x

SHOPPERS IN YOUR STORES

SHOPPERS BUYING THE CATEGORY

TIMES THEY PURCHASE

AMOUNT THEY SPEND

Store Households

(Category) Penetration

Trips per Household

Net $ per Trip

Confidential


2014 convenience retail direction

2014 Convenience Retail Direction

Doug Middlebrooks

AVP, Commercial Marketing & Operations


Convenience retail channel priorities

Convenience Retail Channel Priorities

Drive IC Beverage Conversion Across the Outlet

1

Leverage Consumer Preferred Brands & Marketing Platforms to Drive Transactions

2

Accelerate Foodservice Beverage Incidence & Grow Average Check Size

3

Drive Fill-in Trip Consideration & Conversion

4

Address Critical Focus Shopper Groups: Blue Collar, Hispanic, Teens

F1

Create Customer Value via Shopper & Customer Solutions, System Expertise and Industry Leadership

F2

Confidential


Convenience retail channel initiatives

Convenience RetailChannel Initiatives

Sustained Impulse Zone Activation

Coke with Meals Activation – All Day

Coke with Snacks Power of Many Partnerships

Maximize Innovation & Expand Space

Targeted Coca-Cola Freestyle and Frozen Expansion

Activate Big Events & Shopper Passion Points

Drive Traffic & Fill In Conversion with FC

Confidential


Sustained impulse zone activation

1

Sustained Impulse Zone Activation

Drive IC Beverage Conversion Across the Outlet

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • Nearly 1 out of 5 Bottle/Can beverages are purchased on impulse. Source: NPD CSM 2012

  • Pilot Market Learning from T2

  • Full Year In and Out Offerings supported by Marketing

  • Secure permanent equipment as #1 priority; Food Case and barrels secondary; Ambient Tertiary

Confidential


Sustained impulse zone activation1

1

Sustained Impulse Zone Activation

Drive IC Beverage Conversion Across the Outlet

16oz

Assumptions: 16oz in Cold Vault, Everyday $.99

Incremental placement in open-air dairy or sandwich cases

Pilot Markets only

16oz $.99 in Cold Vault

16oz Thermo

“Cubes or Snowflakes”

16oz Thermo #1

Starts January

“Cubes”

16oz Thermo #2

Launch pre-Memorial Day

New Creative for Summer

Coke, Sprite, Surge (TBD)

$.99

Share a Coke

Exact packages and timing TBD

Share a Coke 20oz and 16oz PET

Assumption: 19.2oz = In/Out Package in barrels and FEMs:

Single retail $1.19 or $1.29; Multiple retail 2/$2 or 2/$2.22

Coke and Sprite (Fanta and Coke Zero TBD)

19.2oz

Coke Zero

Ch Coke Zero

$.99

Confidential


Coke with meals activation all day

2

Coke with Meals Activation – All Day

Accelerate Foodservice Incidence and Grow Average Check Size

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • Meals and snack sales are up +4.1%. Source: NPD CREST YE Feb 2013

    • Top brands consumed with lunch are Coke and Diet Coke. Source: CBL 2011

  • Coke with Food Brand Preference and Legacy

  • Around the Clock, Around the Store

    • Day-part Strategy: Breakfast, Lunch, Grab & Go

  • Meals creative platform enabling consistency and efficiency around Meals activation … Expanded Design Machine capabilities

Confidential


Coke with snacks power of many partnerships

3

Coke with Snacks Power of Many Partnerships

Leverage Consumer Preferred Brands & Marketing Platforms to Drive Transactions

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • PM Snacking accounts for 41% for meals & snack traffic.Source: NPD CREST 12 ME Feb ‘13

    • PM Snack occasion is up 2% in traffic driven by that young millennial, a key shopper in CR Source: NPD CSM12 ME 1stQtr‘13

    • 1 out of 2 CR trips include a purchase of only 1 item. Source: ishop 2012

  • Powerful, Sustaining Partnerships with Leading Snack Companies (Mondelez, Kelloggs, Hersheys, General Mills)

  • A robust, flexible capability to create shopper andretailer relevant offerings by utilizing industry leadingtools and insights (ADOPT, Resource Guides, Design Machine templates)

Confidential


Maximize innovation expand space

4

Maximize Innovation & Expand Space

Drive Beverage Conversion Across the Outlet

  • Timing = T1 2014, Ready to Sell T3 2013

  • Refreshed insights

    • Having unique and appealing products are important on 38% of trips.

    • Source: ishop 2012-Top 2 Box

    • Full Operating Plans by late T2 2013

    • Live Samples for sell in

    • Pilot market learning and consumer testing

    • Early year timing and spacemanagement support

    • Leverage Accordion to establish strategic importance of Beverages to influence Display, Points of Inspiration & Store Design

Having Unique and appealing products -  important on 38% of trips" 

Confidential


Targeted coca cola freestyle frozen expansion

5

Targeted Coca-Cola Freestyle & Frozen Expansion

Accelerate Foodservice Incidence and Grow Average Check Size

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • A large number of 25-34 year olds are driving traffic to C-stores (up 1.3 pts). They tend to seek different experiences that only this channel can offer like Coca Cola Freestyle and Frozen Beverages. Source: NPD CSM 12 ME Mar 2013

  • Coca-Cola Foodservice at RetailResource Guide

  • Coca-Cola Freestyle Marketing Sharepoint

  • Dispensed Selling Story for CR

Confidential


Activate big events shopper passion points

6

Activate Big Events & Shopper Passion Points

Leverage Consumer Preferred Brands & Marketing Platforms to Drive Transactions

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • CR shoppers have key passion points like NASCAR. 18% of CR shoppers are very or somewhat interested in NASCAR indexing at a 119 compared to all other shoppers. Source: Scarborough 12 ME Sept 2012

  • Powerful calendar of Major Events, aligned with consumer passions

  • Combination of National Scale andLocal Relevance

  • Shopper Marketing Expertise

Confidential


Drive traffic fill in conversion with fc

7

Drive Traffic & Fill In Conversion with FC

Drive Fill-in Trip Consideration & Conversion

  • Timing = Annual, Ready to Sell T3 2013

  • Refreshed insights

    • Fill-in trips are very valuable trip to CR as the basket is 75% higher than an average Grab & Go trip. Source: ishop 2012

    • 10% of trips to CR are the Fill-In for Food and Beverages . Source: ishop 2012

  • Exciting new innovation for 2014 … The Sixer!

  • PRGM Excellence coupled with Marketing Pull

  • Incremental ambient merchandising of smartwater and 1.25L SSD

Confidential


2014 convenience retail los calendar general market

2014 Convenience Retail LOS Calendar – General Market

T1

T2

T3

KO Winter Olympics

KOZ NCAA

KO World Cup

Ahhh Coke/

Coke Flavors

KOZ Fall Football

KOZ Gaming

KOZ Gaming

CV – Core SSD

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

Flavors Pricing Activation

CV – Flavors SSD

NOS MMA

NOS NASCAR

NOS Active MMA

NOS MMA

NOS MMA

CV – KO Energy

KO Energy 2/$X

PA NCAA

PA World Cup

PA Football

PAZ Olympics

CV – Sports Drinks

Mix, Match, Hydrate (PA 32oz, vw 20oz, sw 700ml)

vitaminwater 20oz/32oz Text4Tix

CV – IEW

Dasani Drops Small Size Bundle (tbd)

CV – Water

Fuze $0.99 1L

CV – Tea

MMJTG 2/$3

MMJTG Gas fora Year Contest

MMJTG 2/$3 (tbd)

CV – Juice

Share a Coke - TBD

NASCAR 19.2oz

NASCAR 19.2oz

Fall Football 19.2oz

Impulse Zone

KO/KOZ Hershey’s Combos

Snacks

AM/PM Combo DaypartCoupon

Meals

Dispensed Promo

KO World Cup

KOZ Fall Football

KO Holiday

KOZ NCAA

KO Winter Olympics

KO World Cup

Ahhh Coke/

Coke Flavors

KOZ Fall Football

KO Holiday

KOZ NCAA

SSD FC

Smartwater Racks

PA NCAA

PA World Cup

PA Football

smartwater rack

Still Ambient

PA World Cup

Confidential


Channel tools enablers

Channel Tools & Enablers

Enhanced Foodservice Tools: Foodservice in Retail Page, Freestyle Marketing Guide

NEW Automated LOS for CR

Category Advisory and K&I Support

Confidential


Winning in convenience retail in 2014

Winning in Convenience Retail in 2014

Drive IC Beverage Conversion Across the Outlet

1

Leverage Consumer Preferred Brands & Marketing Platforms to Drive Transactions

2

Accelerate Foodservice Beverage Incidence &Grow Average Check Size

3

Drive Fill-in Trip Consideration & Conversion

4

Address Critical Focus Shopper Groups: Blue Collar, Hispanic, Teens

F1

Create Customer Value via Shopper & Customer Solutions, System Expertise and Industry Leadership

F2

Confidential


Winning in convenience retail

THANK YOU

For additional information please visit the Shopper/Customer Marketing Community at www.KOSCMarketing.com


  • Login