Post on 17-Jun-2018
Tapping into PepsiCo Brands to Tapping into PepsiCo Brands to Increase Snack Bar ProfitsIncrease Snack Bar Profits
Bowl EXPO 2010
Session AgendaSession Agenda
• Consumer Insights Shereen Besselle, PepsiCo
• Picking up Spare Profits Amy Arcuri/Terry Taylor, BPAA
• Question and Answers All
Bowling Category Overview Bowling Category Overview and Consumer Trendsand Consumer Trends
Within the Foodservice Amusement Within the Foodservice Amusement Category, Bowling Represents 11% of Category, Bowling Represents 11% of OccasionsOccasions
Amusement Category: % Share of Occasions
Other11%
Movie Theatres19% Bowling
11%
Amusement Parks34%
Stadiums25%
Source: NPD Crest, 12 mos ending April 2010
% Change Vs. YAGO
4.6%
-15%
Bowling Users Food/ Bev Occasions
Bowling Participation Is On The Bowling Participation Is On The RiseRise ……However Food and Beverage However Food and Beverage Occasions Are Down Occasions Are Down
69.3 Million
Users
Source: NPD Crest, 12 mos ending April 2010
Declines Are Being Driven by 35Declines Are Being Driven by 35 --49 49 yr oldsyr olds
Bowling Occasion % Chg vs. YAGO
-18%
72%
31%
-13%-31%
-41%
< 18 18-24 25-34 35-49 50-64 65+
16%17%23%13%10%22%Share
of Traffic
53% of Occasions
Source: NPD Crest, 12 mos ending April 2010
Soft Drinks Are Very ImportantSoft Drinks Are Very Important ……
Key Beverage Incidence: Bowling
46.1
17.4
7.4 6.2 3.8
Soft Drinks Beer Tap Water Cocktails Coffee
Source: NPD Crest, 12 mos ending April 2010
However, Soft Drink Incidence Has Been However, Soft Drink Incidence Has Been SoftSoft
Soft Drink Incidence Over Time: Bowling
62.2 62.0
46.1
2008 2009 2010
Source: NPD Crest, 12 mos ending August 2009
15.9 pts
So WhatSo What ’’s Driving This Consumers Driving This Consumer ’’s s Behavior?Behavior?
The Economy
Health &Wellness
The Speedof Life
SocialResponsibility
Consumers Adopt Different Trends to Deal Consumers Adopt Different Trends to Deal With the Macro Factors Impacting Their With the Macro Factors Impacting Their LivesLives
Social Responsibilit
y
Health & Wellness
Speed of Life
Economic Downturn
Consumer Trends
XXSearch for Authenticity
XXConnected Experience
XXFocus on Forever
XXXXHealth 3.0
XXConsidered Consumption
There Are Three Key Trend Impacting There Are Three Key Trend Impacting Bowling ConsumersBowling Consumers
Social Responsibilit
y
Health & Wellness
Speed of Life
Economic Downturn
Consumer Trends
XXSearch for Authenticity
XXConnected Experience
XXFocus on Forever
XXXXHealth 3.0
XXConsidered Consumption
Drivers
Consumer Trend: Considered ConsumptionConsumer Trend: Considered Consumption
� Awareness of economic risk and uncertainty about pr esent / future
� Job losses and declines in disposable income
� Greater availability of information
ManifestationsInsights
Consumer Trend: Considered ConsumptionConsumer Trend: Considered Consumption
More cautiousMore pragmatic
90% agree that “I consider myself to be a bargain hunter”
70% have cut spendingWill pay more for worth
Need to Justify Spending
Renewed Focus on Worth
Economizing is Smart
62%
Personal Savings Rate:
5/09 6.9%
RetailMeals
9.3%
Value Meals
Implications For Bowling ProprietorsImplications For Bowling Proprietors
• Consumers have many different ways of defining valu e• It’s important to provide consumers with more than one
value experience when in center
Price Value – Happy hour deals, $2 combos, coupons, free game of
bowling
Benefit Value– Beverage Promotions (Buy+Get+Win), door prizes, gra b
bags
Drivers
Consumer Trend: Connected ExperienceConsumer Trend: Connected Experience
� Advances in personal, mobile technologies
� Search for meaning and more engaging experiences
� Desire for community and interconnectedness
ManifestationsInsights
Consumer Trend: Connected ExperienceConsumer Trend: Connected Experience
9.3%
Living Life to the Fullest
Social Networking
Seeking Experiences
Valuing a sense of play and novelty
Desiring new sensory experiences
Transforming personal interaction
Shifting brand / media landscape
The continuing desire for small pleasures and new experiences
Tuesday Game Night
Sharing experiences
with kids
Implications For Bowling ProprietorsImplications For Bowling Proprietors
• Leverage technology to drive marketing efforts, gro w center awareness and increase consumer engagement
Facebook/Twitter – Announce the new menu or drink specials of the day – Promote a happy-hour event or special in center eve nt – Solicit ideas for new menu items or specials of the day – Offer a special prize for people who follow you on Twitter by a specific time
and date, to be entered to win a free game of bowli ng
On Line Reviews– Review sites are a great way to connect with consum ers…chances are your
center is already on review sites like Yelp– If it’s not, be sure to encourage your customers to post a fair review– If there is a negative review left, try to reach ou t to that customer and
correct the situation if possible
Consumer Trend: Search for AuthenticityConsumer Trend: Search for Authenticity
� Rejection of global, homogenized culture
� Diminished human interaction due to online
� Pressure on traditional family and institutions
Drivers
ManifestationsInsights
Consumer Trend: Search for AuthenticityConsumer Trend: Search for Authenticity
9.3%
Uncompromised Originality
Focus on Heritage
Tried and Tested
Staying true to original roots, recipes
and values
Local market / farmer growth interested in
sources/ origins as indicators of what’s
‘real’
Trust in those things that have withstood
the test of time
167% increase in
Farmers Mkts since
1994
Implications For Bowling ProprietorsImplications For Bowling Proprietors
• Trying to be all things to all consumers will dimin ish authenticity and value
Health & Wellness– Increase awareness and presence of better for you f ood & bev
options, but are still relevant to the environment (vegetarian pizza, bottled water, baked lays)
Social Responsibility– Consumers attach real value to companies that give back in an
authentic way– Support initiatives that are a good fit and are impo rtant to
“YOU”… Kids, local community etc.
Seven Initiatives To Help Fuel Seven Initiatives To Help Fuel Snack Bar ProfitsSnack Bar Profits
Growth OpportunitiesGrowth Opportunities
• Growth opportunities are focused on driving volume by increasing center food & beverage sales through bes t practices and business building initiatives
• Seven initiatives to help fuel snack bar profits:1. Cup Price and Size Architecture2. Brand Voids
3. Bottles to Go 4. Model Merchandising
5. Combo Meals6. Suggestive Sell & Promotions7. Understanding Pepsi Profits
Cup Price and Size Cup Price and Size ArchitectureArchitecture
Basic Theories of Proper Cup size & Basic Theories of Proper Cup size & PricingPricing
• Offer consumers at least three cup sizes beyond “ki d size”– 24 oz, 32 oz and 44 oz– FACT: When a 44 oz size is introduced, almost 1/3 of the 32 oz
consumers, migrate to the 44 oz cup
• Identify the largest size as the “best value”
• Use Simple names for each cup size– Small Medium and Large vs. Tall, Jumbo, Grande
• Utilize cup merchandiser to communicate cup sizes & prices
To Maximize Volume and RevenueTo Maximize Volume and Revenue
• Sell smaller sizes (16 oz and 24 oz) at highest pri ces to encourage trading up to larger sizes
• Sell Cruiser cups (best demand / cost ratio) at hig hest possible prices
• Sell the 16 oz or lower size as your “kid” size cup
• Don’t offer a 12 oz cup on the menu. Use these for birthday parties – pitchers of Pepsi
Brand VoidsBrand Voids
Brand VoidsBrand Voids
• Brand variety has a positive impact on consumer satisfaction and incidence
• While soft drinks still account for most beverage purchases, alternative beverages have grown twice a s fast over the past two years– All-time highs in consumer awareness of health and wellness are
driving growth of non-carbonated beverages in both fountain and bottles to go
Brand VoidsBrand Voids
• Optimization of the brand line-up not only enhances customer satisfaction, but also maximizes beverage funding and profits for BPAA members
• There are currently 1,348 Tropicana brand voids
• These voids alone represent an estimated 66,000 gallons, which is close to $250K in center level fu nding
8th ValveOptions
8 Valve Set
6 Valve Set
6th ValveOptions
Core 4 : These top 4 brands make up approximately 70% of total fountain sales
BPAA Recommended Brand SetsBPAA Recommended Brand Sets
Bottles To GoBottles To Go
Why Should You Offer Bottles To Why Should You Offer Bottles To Go?Go?
• Increased consumer interest in product variety make s bottles to go another opportunity to sell them what they want instead of walking away without a purchase
• When the Snack bar line is too long, bottles to go offers the bowler a choice if they can’t wait
• If your snack bar closes before the lanes close, bo ttles to go allows beverage incidence to continue
What Bottled Beverages Should You What Bottled Beverages Should You Sell?Sell?
• 80% Non-carbonated bottles will complement fountain offerings – Lipton Brisk (Lemon and Diet), SoBe, Tropicana
• Specific flavors preferred by most regional consume r demographics– FruitWorks, Dole
• The #1 Non-Carb Brands– Aquafina, Frapuccino
• Energy Drinks are top sellers with 18-23 year olds– AMP, Rockstar
How Should I Merchandise Bottles To How Should I Merchandise Bottles To Go?Go?
• DISPLAY IN A GLASS FRONT VENDOR
• Use one row for the Core Four carbonated beverages
• Use the eye level rows for the highest profit margin options, such as AMP or Rockstar
• Use a full row for Aquafina
Key TakeawaysKey Takeaways
• Price bottles to go at same price as a 32 oz founta in drink, consumer will pay more for convenience
• Price SoBe, AMP, Rockstar and Frappuccino higher
• Fountain Drinks remain the preferred drink of choic e (for On-Premise Consumption) with bottles to go offering consumer’s solutions for variety and portability
• Beverage incidence increased 7% when BTG were added to the beverage offering
Model MerchandisingModel Merchandising
BPAA BPAA MenuboardMenuboard TestimonialsTestimonials
• The new menu board has increased awareness of our s nack bar and increased food sales by 40%
• Most of our customers comment on the new menu board . It has had a tremendous influence over orders. Our sales snack bar sales have increased
Importance of Importance of MenuboardsMenuboards
• Menu boards are a major driver of the purchase deci sion
• Over 75% of restaurant customers read menu boards f or pricing information, product selection, special off ers and promotions, new items and product descriptions
• Menu boards must have a logical flow that aids the consumer in the ordering process
Side panels should each have a theme: From the Grill
and Sandwiches tells the consumer what you offer in
each category
Combo meals in the middle where the consumer will look
first
Beverage should have their own space/panel
Sides and Snacks should also have their own
space/panel
BPAA BPAA MenuboardMenuboard layoutlayout
MenuboardMenuboard TipsTips
• Use appetizing photos to highlight offers– Use ingredients to prop photos and add to their appetite– Let the props differentiate between similar offerings– Its important to remember customers will recognize pictures before
words
• Have beverages on the menuboard– Feature branded bottles or cups with visible logos– This will reassure the customer of quality, value and variety
• Only feature 6-8 combos on your menuboard– Anything more than 8 is too much for the customer to take in
What consumers see at Taco BellWhat consumers see at Taco Bell
What Consumers See At KFCWhat Consumers See At KFC
What Consumers See At Some What Consumers See At Some CentersCenters
Combo MealsCombo Meals
The Importance of Combo MealsThe Importance of Combo Meals
• Combo Meals Drive Customer Loyalty• Consumers are programmed to order from a QSR from a
combo meal menu– They tend to feel uncomfortable and even confused when one is not
present
• Combo meals are perceived as a better value for the dollar
• Combo meals simplify the ordering experience• Increases familiarity with restaurant – provides a
predictable experience• Reduces wait time• Better order accuracy with reduced mistakes
Combo Meals and Operational Combo Meals and Operational EfficiencyEfficiency
• Make it easier to process / fulfill order
• Less training required – quicker familiarity with me nu
• Reduce burden of cross selling and up-selling
• Reduce chance of customer dissatisfaction and negat ive feedback
• Moves the line quicker and reduces employee stress
Combo Meals Increase MarginsCombo Meals Increase Margins
• Moves your high margin items at a faster rate – side items and beverages are your high margin items
• Drives incremental unit sales through bundling –especially beverage
• Consumers are looking for value – combo meals delive r
Helpful Combo Meal StrategiesHelpful Combo Meal Strategies
• Devote at least 60% of menu board space to their pr omotion.
• Have easy to order 1-2-3 numbering
• Feature between 6-8 combo meals, no more– An ideal offering is 6 everyday meals, and 1 or 2 daily specials
• Among your combo meal offerings, include at least o ne or two low price points
– $2.99 is very desirable, even it is a jumbo pretzel and a soft drink or a hot dog, Doritos and a soft drink
• Price the majority of combo meal offerings at just under $5.00
• Price one combo meal offering over $5.00
• Make sure the combo meal a value package…price at l east $0.50 off individual offering pricing
Suggestive Sell & Suggestive Sell & PromotionsPromotions
Keys To Suggestive Selling Keys To Suggestive Selling
• Keep it simple – offer one up sell per transaction
• Train your crew to personalize their add-ons Exampl es: – A cold Pepsi would go great with that burger; – I highly recommend making that a combo, you could save – I can upsize that for you for just a quarter more.
• Train - Measure – Retrain or reward
• Utilize a third party company to mystery shop your locations and evaluate customer service and suggest ive selling program
• Use the data from the program to recognize, reward, coach and train your staff members
The Role Of Promotions and Specials The Role Of Promotions and Specials
• Beverage Promotions have proven to increase profits by adding a compelling reason for a consumer to purcha se a large beverage at a higher price point
• Special offers in the snack bar area can be as effe ctive as they are on the lanes
• Consumers looking for value will respond to special one night a week that offers a free upsize or the chanc e to upsize for a modest increase in price
Pin Down A Win For Kids: Evergreen Pin Down A Win For Kids: Evergreen (FREE)(FREE)
• Centers give youth groups a batch of “Pin Down a Win”cards to sell with the goal of raising money for their community cause
• Each card contains 10 special offers from the participating center and an entry form to win a “prize”
• Pepsi-BPAA centers each will receive posters, counter cards and peel cards
Fall Major Promotion: Rock the Fall Major Promotion: Rock the Lanes Lanes
• Buy a 44oz Fountain drink and receive a free music download plus the chance to win 1 of 6 trips for two to the Bowling ITRC
• Starts September 29 th –December 22 nd
• Pepsi-BPAA centers each will receive posters, cups and cup merchandiser
Understanding Pepsi Understanding Pepsi ProfitsProfits
85%Beverage Profit %
$53,250$2.13Gross Profit
$3,000$0.12Cup/Lid/Straw
$6,250$0.25Product Cost
$62,500$2.50Price
AnnualPer ServingAnnual Servings: 25,000 (44 oz)
Pepsi Profitability ExamplePepsi Profitability Example
Key Takeaways: Increase Snack Bar Key Takeaways: Increase Snack Bar Profits Profits • Understand your food and
beverage operation
• Understand your food and beverage traffic – by gaining consumer insights you can increase your average snack bar check: – FACT: Average check for bowling
food and beverage is $4.72
• Take advantage of the BPAA/PepsiCo partnership providing not only savings, but promotions, insights and industry financial support
• Get to know all the Brands and products PepsiCo offers
Source: NPD/Crest 12 months ending April 2010