Selling to the Military

SELLING TO THE MILITARY:

Kent Cummins, CMCE Executive Director

International Military Community Executives Association

Prepared for Nightclub & Bar Show exhibitors

Alex ShortsleeveDirector of Ed. &

TrainingInternational Military

Community Executives Association

A Billion Dollar Marketplace:6.7 Billion in Military Food Service(Government Food Service October 2010)

• US Army

• Air Force

• Navy

• Marine Corps

• Coast Guard

•and their families…worldwide…

* Government Food Service October 2009

Demographics: The Military Consumer

Puzzle Pieces:•APF

•NAF

•GSA

•AFNAFPO

•CSBP

•DeCA

•AAFES/NEXCOM

•MCX/CGES

•VCS

•DLA

• JSPVP

•DoD

•MWR

• IMCEA

* Government Food Service October 2009

Where the Military Market Gets its

Money:

•APF = Appropriated Funds (Congress)

•NAF = Non-appropriated Funds (Operations)

How Do They Buy?

•GSA & AFNAFPO Contracts

•Government Credit Cards

•Open Market

•Prime Vendor Contracts

•Military Brokers & Distributors

Military Brokers & Distributors

GSA

•Under the GSA Schedules program, GSA establishes long-term government- wide contracts that allow customers to acquire a vast array of supplies (products) and services directly from commercial suppliers.

AFNAFPO

•Air Force Non Appropriated Fund Purchasing Office

• (AFNAFPO can be used by all Services)

• The AFNAFPO is responsible for purchasing support to over 3000 Department of Defense (DoD) activities worldwide through the Commander's Smart Buy Program (CSBP).

• The CSBP is the trade name representing all purchasing programs initiated and managed by the AFNAFPO

CSBP

•Commander’s Smart Buy Program• The CSBP brings to the forefront the collective

purchasing power of the Services community through centralized programs that deliver best value in terms of quality, performance, and pricing yet, at the same time, allow decentralized buying at each base.

DeCA

•Defense Commissary Agency

• Operates the military Commissaries throughout the world.

• DeCA Commissaries are supermarkets, usually located on military installations, that sell food, sundry and cleaning products

AAFES/NEXCOM

•Army & Air Force Exchange Service

•Navy Exchange Service Command• Is committed toward working with both large and

small business enterprises. AAFES/NEXCOM works with a large number of small business enterprises including those that are minority or women-owned. Determining factors for procuring merchandise from suppliers are quality products, competitive prices, on time delivery and customer demand.

MCX/CGES

•Marine Corps Exchange• The Marine Corps Exchange is the #1 Marine Corps

Community Services (MCCS) benefit to our customers based on the "Marine Corps MCCS Needs Assessment Survey". Our goal requires a special commitment to our Marine Corps members by providing the best quality and true value for their merchandising and purchasing needs.

•Coast Guard Exchange System• The Mission of the Coast Guard Exchange System is

to provide quality merchandise and services of necessity and convenience to our Coast Guard men and women as well as authorized patrons at competitive prices.

VCS

•Veteran Canteen Service• Purchases retail merchandise both nationally and

locally for its 172+ retail stores through a shared procurement system designed to meet a very diverse customer base.

• New merchandise selections and potential new vendors are reviewed semi-annually in Merchandise Committee meetings. Nationally approved items are placed in our ordering system and are available to each Retail Store for ordering. Our system offers a personalized and Veteran centric selection process, allowing regional and local needs of our customers to be serviced.

DLA

•Defense Logistics Agency Troop Support

• The Subsistence Directorate serves as the key link between the Armed Forces and the U.S. Food Industry.

• It also provides support to other Federal Agencies, the Veterans Administration, Public Health Service hospitals, the USDA's National School Lunch Program, and the District of Columbia School District.

JSPVP

•Joint Services Prime Vendor Program

• The prime vendor program for the United States

Army, Navy, Marines, Coast Guard, and other Department of Defense non-appropriated fund food activities.

• A majority of the activities in JSPVP are Morale, Welfare, and Recreation (MWR) operations.

DoD

•U.S. Department of Defense • Today, the Department, headed by Secretary of

Defense Leon Panetta, is not only in charge of the military, but it also employs a civilian force of thousands.

• With over 1.4 million men and women on active duty, and 718,000 civilian personnel, DoD is the nation's largest employer.

• Another 1.1 million serve in the National Guard and Reserve forces. More than 2 million military retirees and their family members receive benefits.

MWR

•Morale, Welfare & Recreation

• (Air Force calls it “Services”)

The Military MWR/Services Community

•Clubs, Restaurants, Snack Bars, Bowling Centers, & Golf Courses

•Fitness Centers, Childcare, Lodging, and more

IMCEA

•International Military Community Executives Association

IMCEA (The Missing piece)

•The Doorway to the Military MWR Marketplace

• Associate Membership

• On-Line Resource Guide

• Connections Monthly e-zine

• Training & Special Events

• Sponsorship Opportunities

• Military Club & Hospitality magazine (EBM Publications)

EBM Publications

IMCEA Fiesta of Flavors

•Tradeshow in San Antonio, TX on July 20th

• In conjunction with the "2011 Armed Forces Food & Beverage Workshop."

•More than 400 Military buyers from all over the world representing the Air Force, Army, Navy, Marines and Coast Guard.

CONTACT INFORMATION

Kent Cummins, CMCE(512) 84-IMCEAkent@imcea.org

Alex Shortsleeve, MBA832-389-6532alex@imcea.org or visit us at

www.IMCEA.org