Australian Convenience Store News | C-Store 2000 Seminar

Seminar 1: One Size Does Not Fit All - The Case for Micromarketing. Here is a brief summary of the presentation by each speaker. Bruce Cochrane

National Manager - National Accounts for Schweppes Cottees -Seminar Convenor

Bruce Cochrane set the scene for the seminar: "While uniform national retail offers have been a feature of successful franchised convenience store operations, independents have tended to develop their own systems to meet the demands of their local markets. Our speakers today share case studies which clearly show that there are opportunities for independents to walk a difference road."

Mr Cochrane told the seminar that, although the major chains offered economies of scale and mass exposure for suppliers, single independent sites and small chains presented unique opportunities.

The sites offered better compliance levels with promotions; their in-store offers were often better targeted to store clientele; and it is easier for suppliers to have direct communication with the decision makers in the business.

Mr Cochrane stressed the importance of gathering detailed data on customer demographics in order to tailor their retail offer to their clientele.

Andrew Murray
Retail Director, Northern Marketing Pty Ltd

Starting in 1996, with one store, with no oil company tie, it was decided to start from scratch in a new venture. The company wanted a new kind of convenience store, with a clean and fresh look.

Northern Marketing had worked with Ampol in the past, planned to carry the Ampol badge on the forecourt and to operate the retail offer as an independently branded operation.

The company took the decision to select only staff who had no previous service station experience for the new venture. It also developed a store design which could be easily duplicated at other sites. This was to avoid preconceived ideas or historical experiences which might affect the way the new operation would run.

Management decided to employ the Gerber principle: "Let the system run the business and the people run the system."

In doing this, a number of basic rules were followed:

The team looked at the questions of ëwhat business are we in, and how can we redefine it?í and ëAre we to be a gasoline site with a retail offer or a retail destination with a gasoline offer?í

Ultimately it was decided that there would be no workshop or food preparation areas, but a concentration on general retail. Mr Murray said that the business is built on these five simple principles:

Director, Team Design

Mr Kirk talked about aspects of greenfield construction and rebuilds in terms of maximising the potential of the site and maintaining flexibility for the future.

Micromarketing, he said, started with a site design that allowed for constant change. Corporate groups are less able to cope with micromarkets, which are an ideal niche for independents. He summarised several considerations for site selection.

Choose a site with good access, visibility, size, shape and orientation. Look at the use of land fill to give the site added presence and better use of space. Negotiate with planning authorities to maximise the useable area of the site by reducing setbacks or encroaching on the road reserve.

Regardless of whether you are doing a rebuild or starting from scratch, Mr Kirk stressed the importance of working to a budget and sticking to a number of basic design principles.

He emphasised the need for simple light weight construction which takes advantage of all available space. Sometimes the extra cost of fire rated walls can eliminate wasted space at the back of the building.

Mr Kirk told the seminar that designers, particularly at independent sites, must try to second guess customer requirements for the future and plan for future developments in the store.

Stores that were designed to cope with change usually had a number of design features in common:

Barry Anderson
Managing Director C-Store Management Pty Ltd
Executive Director AACS

Mr Anderson presented a video on Hess, a convenience store chain operating in north-eastern USA. The companyís approach is to offer a "treat" for everyone in the family.

The company provides value-driven food service that is occasion-based. All stores feature modular in-store seating. In the morning, there is a coffee/muffin deal. There are specific opportunities taken at lunch, and there are afternoon snacks, along with a dinner offer, which takes advantage of major food brands.

Hess stores undertake a program of branded food-service training for all employees to keep up-to-date.

One primary focus for the company is to turn the C-store from an occasional visit to a destination outlet. When considering the layout, there were three key words: fast, fun, and friendly.

To achieve this end, the company used colour, sliding doors, wide aisles, and created a Kidzone for the younger shoppers. To all accounts, they have achieved their goal in style.

Dowell Mitchell
Director Foodies Pty Ltd

"It doesnít matter where you are in the food chain, providing you are moving in the right direction."

Mr Mitchell suggested that there are five key steps that his company uses to create loyalty, and which can move your business in the ëright directioní.

Best opportunity for promotion is at the point of purchase.

Create positive interaction and goodwill. Promotion packages can be structured with suppliers and instil the perception of value.

Advertising and local sponsorship builds lasting relationships and goodwill.

Take every occasion to make a special event with in-store prizes. There are always local events and mega events that can help create a focus - football finals, race days, the Olympics

Always remember to belong to the local community. Mr Mitchell recommended becoming part of the neighbourhood watch program, and to make a point of getting to know the other local businesses.

Over The Top (OTT) Customer Service is something that needs to be measured, so that it can be improved. And in most businesses there is room for improvement. Confident, positive staff will always be a benefit to a business.®