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

› 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% deliver 5% in 20% 35% additional 15% sales 10% 10% 2.5% 5% 2.5% 0% Variety Rationalize Leverage Source: Convenience SuperStudy™, Willard Bishop/Dietz Consulting, 2010

Candy & Snacks Share of Center Category Performance Sales AGP TP 49% 43% 40% 26% 24% 13% Total Snacks Candy Source: Convenience SuperStudy™, Willard Bishop/Dietz Consulting, 2010

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

Warehouse-Delivered Candy & Snacks MVEs truly are Category Management at its Finest! Best Brands A Shared Multi- (core) Across Vendor End-Cap Segments Leverages Brand SKUs are Selected by Strengths and Satisfies Sales Velocity a Broad Range of Essentially Consumers Cravings Vote with their Wallets Incremental High Margin Sales Highly Impulsive Brands Warehouse Snacks on Average Deliver 11.9% at a Secondary Location Higher Gross Margin than on the Path to Purchase the DSD – Candy Margins are even Higher Distributor Candy MVE (Example Only) Distributor Large Snacks MVE (Example Only)

C-Store Shoppers Path To Purchase Spend $6.02 – 25 seconds Buy 2.3 at checkout items – 38% Increase Average 60% of traffic buy only 1 Transaction Size converts to item and Gross Margin Spend 2 buyers Leverage Path To Contribution minutes 26 Optimize Counter Purchase with Shopper seconds Impulse by Secondary Enters The shopping Merchandising Locations for High Store Core Candy and Margin Candy & Make Your Store Snacks SKUs Snacks Fast To Shop and Items Easy To Find Source: VideoMining – How are C-Stores Shopped

Easy to Learn How Video… Go to: 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

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

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)

Pr Procu ocurin 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 • The Fixtures are High Quality, Sturdy & are Manufactured by Tennessee Wire • MVEs can be ordered with your traditional Dot Foods purchase order • 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 Item # MVE Type Pallet Qty Minimum Order Foods Customer Service 605350 Confections 8 8 Representative at 800-366-3687 605351 Small Snacks 10 10 • or log on to The Dot Expressway at 605352 Large Snacks 8 8 www.dotexpressway.com

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

Q & A with Q & A with Pr Presen esenter ers s https://www.cdaweb.net/Resources/ Warehouse-DeliveredSnacks/ MultivendorEndcap.aspx

Our Story • Mid sized distributor • Strong independent market • Early successes roughly 10 years ago • Recent successes since 2016

How did we start? • Purchased a MVE rack • Ran sales numbers • Pulled product from inventory • Developed POG • Discussed with MFG partners

Who is on the racks? • Snack MVE (small) • 7 MFGS • 55 SKUS • Candy MVE • 9 MFGS • 64 SKUS • MFGs were charged by item

How did we sell the rack? • Sales meeting • Sales sheet • Sales spiff $25 • Tradeshow booth • Placed 85 MVE racks

How did our customers perform? 2016 2017 MVE Units Total Store MVE Lyons Total Store Lyons MVE % of Total Units Units % +/- Units % Change Sales $ Sales $ Business Name Diff. 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%

CUSTOMERS WITH MVE GROWTH 2016-2017 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2016 Units 2017 Units

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

Thank you!