Meeting consumer demand in store Maximizing center store - - PowerPoint PPT Presentation

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Meeting consumer demand in store Maximizing center store - - PowerPoint PPT Presentation

Oct 24, 2022 306 likes •535 views

Meeting consumer demand in store Maximizing center store categories performance Increasing retailer sales, margin, and profitability 50% 45% Top 4% of SKUs 40% drive Half of the 35% Sales Bottom half of 30% SKUs only 50% 25%

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› Meeting consumer demand in

store

› Maximizing center store

categories performance

› Increasing retailer sales, margin,

and profitability

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50% 35% 10% 2.5% 2.5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Source: Convenience SuperStudy™, Willard Bishop/Dietz Consulting, 2010

Top 4% of SKUs drive Half of the Sales Bottom half of SKUs only deliver 5% in additional sales

Leverage Variety Rationalize

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49% 24% 43% 26% 13% 40% Total Snacks Candy

Candy & Snacks Share of Center Category Performance

Sales AGP TP

Source: Convenience SuperStudy™, Willard Bishop/Dietz Consulting, 2010

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MVE Basics

› Stick to the core › Work with Manufacturers › Impulsive Secondary Placement › Compliance Plan

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Warehouse-Delivered Candy & Snacks MVEs truly are Category Management at its Finest!

A Shared Multi- Vendor End-Cap

Leverages Brand Strengths and Satisfies a Broad Range of Cravings

Best Brands (core) Across Segments

SKUs are Selected by Sales Velocity Essentially Consumers Vote with their Wallets

Highly Impulsive Brands

at a Secondary Location

  • n the Path to Purchase

Incremental High Margin Sales

Warehouse Snacks on Average Deliver 11.9% Higher Gross Margin than the DSD – Candy Margins are even Higher

Distributor Candy MVE (Example Only) Distributor Large Snacks MVE (Example Only)

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C-Store Shoppers Path To Purchase

Shopper Enters The Store Spend 2 minutes 26 seconds shopping 60% of traffic converts to buyers Buy 2.3 items – 38% buy only 1 item Spend $6.02 – 25 seconds at checkout

Source: VideoMining – How are C-Stores Shopped

Make Your Store Fast To Shop and Items Easy To Find Optimize Counter Impulse by Merchandising Core Candy and Snacks SKUs Leverage Path To Purchase with Secondary Locations for High Margin Candy & Snacks Increase Average Transaction Size and Gross Margin Contribution

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ht https://www.cdawe web.net/Resources/Warehouse-Delive veredSnacks ks.aspx

Click here and Watch The video.. At the bottom of the video is all the work sheets you need to get in the Game

Easy to Learn How Video… Go to:

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Do Don’t Do n’t Do it A it Alo lone... ne...

  • Select a manufacturer category captain and validator to help you make the right category

management decisions by applying a holistic, data insights–driven category management process.

  • Focus on Core SKUs in each category segment—the proven winners over time; the “best of the best.”
  • Product performance drives the placement, and a cost share program with manufacturer participants

is developed after the products are selected.

  • Each manufacturer pays for their share of space on the rack. Assure retailer compliance by tracking

rack placements, monitoring the in-stock position and the integrity of the planogram.

  • Quarterly compliance reports are to be provided to participating manufacturer partners on a

quarterly basis to obtain funding.

  • Take advantage of the studies and materials developed by the WDSC to train your sales organization

how to sell the value of your program to your c-store customers

  • Give Sales Team a one time placement PM of $100 PM have a Update the set PM each year of $25 to

maintain the Rack

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Striking the proper balance between Warehouse & DSD Snacks requires a focus on the following:

§ Leverage the brand strengths of Warehouse Snacks across segments § Capitalize on the margin advantages of Warehouse Snacks vs DSD § Assure distribution and avoid out of stocks on Core SKUs & Program SKUs § Capture prime secondary merchandising locations and ensure “fair share” of space between DSD and WSD snacks § Rapid distribution of innovation products (incremental sales)

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Pr Procu

  • curin

ring MVE Fix g MVE Fixtu tures is Simp es is Simple le

Thanks to Dot Foods – Procuring the Industry End-Cap Fixtures is Simple & Cost Effective

Item # MVE Type Pallet Qty Minimum Order 605350 Confections 8 8 605351 Small Snacks 10 10 605352 Large Snacks 8 8

  • The Fixtures are High Quality, Sturdy

& are Manufactured by Tennessee Wire

  • MVEs can be ordered with your

traditional Dot Foods purchase

  • rder
  • The Normal 2 – 4 Day Lead Time

Applies (large orders may require additional lead

time)

  • Order in Pallet Quantities (below)
  • To place an order, contact your Dot

Foods Customer Service Representative at 800-366-3687

  • or log on to The Dot Expressway at

www.dotexpressway.com

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MVE Rack Cos MVE Rack Cost Sh t Shar are Ex e Examp ample le

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https://www.cdaweb.net/Resources/ Warehouse-DeliveredSnacks/ MultivendorEndcap.aspx

Q & A with Q & A with Pr Presen esenter ers s

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Our Story

  • Mid sized distributor
  • Strong independent market
  • Early successes roughly 10 years ago
  • Recent successes since 2016
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How did we start?

  • Purchased a MVE rack
  • Ran sales numbers
  • Pulled product from inventory
  • Developed POG
  • Discussed with MFG partners
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Who is on the racks?

  • Snack MVE (small)
  • 7 MFGS
  • 55 SKUS
  • Candy MVE
  • 9 MFGS
  • 64 SKUS
  • MFGs were charged by item
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How did we sell the rack?

  • Sales meeting
  • Sales sheet
  • Sales spiff $25
  • Tradeshow booth
  • Placed 85 MVE racks
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How did our customers perform?

Name 2016 Units 2017 Units Diff. MVE Units % +/- Total Store Units % Change MVE Lyons Sales $ Total Store Lyons Sales $ MVE % of Total Business Store #1 748 1728 980 131% 455.80% 146% 925.40% 11.51% Store #2 1771 3450 1679 95% 37.80% 92% 19.40% 1.64% Store #3 969 1682 713 74% 243.10% 66% 229.10% 3.88% Store #4 2560 3238 678 26% 115.40% 36% 19.20% 1.56% Store #5 2814 3378 564 20% 0.90% 25% 9.30% 1.40% Store #6 2475 2914 439 18% 0.20% 12%

  • 13.60%

1.18% Store #7 3970 4671 701 18% 29.60% 19% 38.20% 2.25% Store #8 1905 2229 324 17%

  • 31.10%

28%

  • 6.70%

1.88% Store #9 2833 3179 346 12%

  • 9.50%

24% 2.30% 1.98% Store #10 3168 3543 375 12%

  • 9.20%

5%

  • 13.70%

1.03% Store #11 8253 8994 741 9% 7.20% 10% 13.70% 5.53% Store #12 2419 2606 187 8%

  • 14.60%

12%

  • 0.10%

1.59% Store #13 4479 4800 321 7% 14.50% 12%

  • 0.40%

2.43% Store #14 2340 2424 84 4%

  • 18.11%

4%

  • 28.60%

2.16%

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CUSTOMERS WITH MVE GROWTH 2016-2017

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2016 Units 2017 Units

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MVE Units as % of Total Store Units Sold

11.51% 1.64% 3.88% 1.56% 1.40% 1.18% 2.25% 1.88% 1.98% 1.03% 5.53% 1.59% 2.43% 2.16% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14

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Thank you!