Shopper behaviour in Convenience & Petroleum… and how to leverage itfor improved merchandise purchase incidenceSeptember 2007
The merchandise incidence opportunity Source AACS 2007 You can increase incidence by increasing relevance – play to occasions and dayparts
Contents • 1. Shopper daypart occasions • 2. Execution by C&P channel segment: • Segment shopper behaviour variances • What to do about it – visibility and merchandising, space & layout, persuasion and service
Daypart occasions: Monday-Friday 6am 9am 12noon 3pm 6pm 9pm 12mid Drive time Breakfast Lunch Dinner on the run AM break Healthy snack PM Treat Incl post-school Snacks to stay in/DVD Late night munchies Drive time Dinner prep Emergency runs
Daypart occasions: Weekends 6am 9am 12noon 3pm 6pm 9pm 12mid Newspapers Bread & milk Emergency party pickups – Ice, softdrinks Snacks to stay in/DVD Chores – petrol, car wash, Tyres, auto care Dinner prep Late night munchies Cool down (summer) – Ice cream, FCB Emergency runs
Executing dayparts: some ‘whats’ Meals Meal Solutions Range ready to eat meals Range fresh fruit & veg Bundles eg mains + desserts + drinks + + Snacks Bundle confec/snacks & bev + +
Executing dayparts: some ‘hows’ Queue Merchandising Offlocation Displays • By daypart – portable wheel-in-wheel-outs • Same 1-2 units, restocked with different items • Interchangeable header cards • Gondola ends and in major traffic pathways • Eg between back of store fridges and counter • Occasion or daypart based, ideally Meals Specific area of store, clearly signed Opportunity for cross category occasion promotion in forecourts?!
Treat Meal Craving Express top up Services Emergency Destination The major missions – they change by daypart The overall priority of these also varies a bit by channel segment, we’ll address this later
Shopper behaviour changes by channel segment Convenience Only Dual C&P Petrol Only More likely to be: • Inner city • Suburban strips • Apartment developments • Tier 1 and Tier 2 • Major arterial roads and highways • Tier 3 • Suburban • Some arterial roads
Shopping occasions change priority by channel segment Convenience Only Dual P&C Petrol Only Half of needs are food! Service here includes internet Local alternative to supermarket More impulse purchases ‘On the way’ to somewhere Tap into the service need. The basics. • Treat • Meal • Express top up • Emergency • Destination • Services • Craving • Services • Treat • Destination • Meal • Craving • Emergency • Express top up • Services • Craving • Destination • Treat • Emergency • Meal • Express top up
Convenience Only Variation/Emphasis Implication • Walk in, not drive • Meals, Express top up, Emergency • Higher incomes • Some frequent locals • Range: rte meals, emergency categories • Range all food and grocery categories for top-up shops • Meals destination in store • Sign ‘what’s new’ for the locals • Ensure telco offer is visible • Staff incentives around basket size increase promotions eg drink + something else Express Top Up Emergency MiniMart opportunity: • Multiple brands per category • Aisles with category headers • Specials promoted on exterior of store Category headers to make emergency purchases easy to find
Dual C&P Variation/Emphasis Implication • Queue paramount • Tradies and truckies • Meals and services • Milk, bread, newspapers • Merchandise destination items in the queue – messaging and POS by daypart/occasion • Tradies and truckies lunch deals • Destination meal area of store • Total Services offer for women – oil, water, tyre checks with while-u-wait coffee and car wash Services • Increasing service portfolio drives frequency and destination: • DVD rentals (since they’re there for snacks anyway!) • Lottery • Dry cleaning • Photo processing
Petro Only Variation/Emphasis Implication • The basics expected, anything else a bonus • All about auto • Services and cravings • Younger shoppers • Merchandise destination items in the queue – messaging and POS by daypart/occasion • Auto care products merchandised in the queue, staff persuasion for add on sales – coolant, oil etc • Services for women – oil, water, tyre checks • Telco products merchandising • Drinks biggest opportunity/craving – ensure coolers in queue/front of store • Ensure basics covered – adequate lighting, clean, uniform fixtures, merchandised queue, and shoppers can see in! Services • Driveway service (for women): • Water, oil and tyre checks etc (at a fee!) • Cross promote with while-u-wait coffee • Applies to Dual C&P also
Summary • Leverage natural shopper occasions and dayparts • Make it easy for them – overdeliver on solutions • Tailor execution by channel segment.
Norrelle Goldring M: 61-411-735 190 E: firstname.lastname@example.org 3 Burton St Linley Pt NSW 2066 P: 61-2-9427 7473 W: www.moxiemarketing.com.au Questions? Lee McAllistair M: 61-414 941 585 E: email@example.com Thank You.