Convenience Store News

MAR 2017

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54 Convenience Store News | MARCH 2017 | WWW.CSNEWS.COM 2017 Pie, and celebrated National Pumpkin Spice Day by giving away a Coffee House Café Pumpkin Spice Cake. McKee has used seasonal items such as Christmas Tree Cakes to help grow the category, too. It partnered with MAPCO to grow both single-serve and take-home family pack Christmas Tree Cakes by funding in-store competitions. The competition provided a double-digit lift in both single-serve and family-pack Christmas Tree Cakes over the previous year. In addition to these shopper marketing efforts, McKee has invested in the data visualization software Tableau to help retail- ers more clearly see their data and the opportunities the data presents. Through Tableau, retailers are easily able to review the category by brands and segments and determine which brands and segments are driving growth and where there are opportuni- ties to improve sales. Customized Tableau category scorecards are sent out on a monthly, quarterly or biannual basis, depending on what the retailer requests of McKee Foods' category insights team. In one category review, Tableau helped the category man- ager easily see the growth opportunity for its breakfast cake and cake segment. A planogram was developed that ensured the proper Coffee House Café items were part of the category to help grow those segments. The planogram implementation has resulted in double-digit growth for the retailer. ••••••••••••• SALTY SNACKS: General Mills Convenience W ith the increase of snack- ing and away-from-home consumption, General Mills Convenience works with retail- ers to maximize the assortment and merchandising of the salty snacks category, leading to increased sales and profits. General Mills' "Category First" management team leverages key learn- ings and insights from multiple sources. These sources include several proprietary studies, such as a salty consumer segmentation study, an in-store shelving audit, and pricing and incrementality studies. The team also has access to multiple sources of data including syndicated data across multiple channels and MSA. Additionally, the team has a proprietary assortment tool called SETMAX that allows retailers to understand SKU-level performance by comparing the retailer's performance against their competitive market. This tool also allows for the evaluation of key metrics, including unit and dollar sales vs. last year, turns, profit and distribution. Highlights from the past 12 months include: • Working with a major nationwide c-store retailer this past year, General Mills Convenience's category management efforts resulted in substantial incremental SKU gains, new $37 and $26 in incremental margin dollars per store each week. Across the entire chain, the retailer has a total incremental profit potential of $1.4 million. This year, the merchandisers will be updated with stronger occasion-based messaging and may incorporate digital displays as they continue to be placed in additional stores. ••••••••••••• PACKAGED SWEET SNACKS: McKee Foods M cKee Foods has made a con- certed effort to help its retail partners grow their baked sweet goods (BSG) category through targeted shopper marketing programs. The supplier's focus has been on listening to its retail partners' needs and working with them to grow incremental sales by targeting customers who do not currently purchase from the category, or by targeting custom- ers who previously purchased in the category but no longer do. A common request from category managers is to help build bigger overall basket sizes by bringing customers into the highly impulsive BSG category. In one program, McKee partnered with four Kroger Convenience Store Division banners to get customers into the habit of adding a Little Debbie Honey Bun or Sunbelt Bakery Granola Bar to their coffee purchase. They did this by giving away one of those products to each customer who purchased a large coffee for one month. In the eight weeks following the promotion, there was a positive sustained lift for the Honey Bun and a double-digit lift for the Sunbelt Bakery Granola Bar in Kroger c-stores. Another common request from category managers is ask- ing to support retailers' efforts to drive customers into the stores. Through the use of a retailer's loyalty card, McKee is able to send out digital coupons to customers who previously shopped the category but no longer do. In one such partnership with Thorntons, the retailer sent out a free Coffee House Café item to loyal customers who had purchased the category previ- ously but not in the past 30 days. This targeted program had a redemption rate of upwards of 12 percent. In the past year, McKee also participated in national dessert holidays and weekends where retailers sent digital coupons and text messages to their loyalty card holders and offered them the corresponding item to the holiday. Twice Daily created a Peanut Butter Weekend where loyalty card holders had all weekend to visit the store and redeem their coupon for a free Peanut Butter Crème Pie, P.B. Richie, or Nutty Buddy. Another retailer, FiveStar, used its robust Facebook following to celebrate National Peanut Butter Cookie Day by giving away the PB Crème

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