Shopper behaviour in Shopper behaviour in Convenience & PetroleumConvenience & Petroleum

… and how to leverage it… and how to leverage itfor improved merchandise purchase for improved merchandise purchase

incidenceincidence

September 2007September 2007

The merchandise incidence opportunityThe merchandise incidence opportunity

Source AACS 2007

You can increase incidence by increasing relevance – You can increase incidence by increasing relevance – play to occasions and daypartsplay to occasions and dayparts

ContentsContents

1. Shopper daypart occasions

2. Execution by C&P channel segment:• Segment shopper behaviour variances • What to do about it – visibility and merchandising, space & layout, persuasion and service

1. C&P shopper 1. C&P shopper occasions by daypartoccasions by daypart

Daypart occasions: Monday-Daypart occasions: Monday-FridayFriday

6am 12mid12noon9am 9pm6pm3pm

Drive timeBreakfast

AM breakHealthy snack

Lunch

PM TreatIncl post-school

Drive timeDinner prep

Dinner on the run

Snacks to stay in/DVD

Late night munchies

Emergency runs

Daypart occasions: WeekendsDaypart occasions: Weekends

6am 12mid12noon9am 9pm6pm3pm

Newspapers Bread & milk

Chores – petrol, car wash,Tyres, auto care

Emergency party pickups –Ice, softdrinks

Dinner prep

Cool down (summer) – Ice cream, FCB

Snacks to stay in/DVD

Late night munchies

Emergency runs

Executing dayparts: some Executing dayparts: some ‘whats’‘whats’

SnacksSnacks

Meals Meals Meal Solutions Meal Solutions

Bundles eg mains + desserts + drinksBundles eg mains + desserts + drinksRange ready to eat mealsRange ready to eat mealsRange fresh fruit & vegRange fresh fruit & veg

Bundle confec/snacks & bevBundle confec/snacks & bev

++ ++

++

++

Executing dayparts: some Executing dayparts: some ‘hows’‘hows’

MealsMeals

Queue Merchandising Queue Merchandising Offlocation DisplaysOfflocation Displays

Opportunity for cross category occasion promotion in forecourts?!

By daypart – By daypart – portable wheel-portable wheel-in-wheel-outsin-wheel-outsSame 1-2 Same 1-2 units, units, restocked with restocked with different itemsdifferent itemsInterchangeabInterchangeable header cardsle header cards

Gondola ends Gondola ends and in major and in major traffic pathwaystraffic pathwaysEg between Eg between back of store back of store fridges and fridges and countercounterOccasion or Occasion or daypart based, daypart based, ideallyideally

Specific area of store, clearly signedSpecific area of store, clearly signed

2. Channel segment 2. Channel segment execution: key missionsexecution: key missions

The major missions – they change by The major missions – they change by daypartdaypart

TreatTreat

MealMeal

CravingCraving

Express Express top uptop up

ServicesServices

EmergencyEmergency

DestinationDestination

The overall priority of these also varies a bit by channel segment, The overall priority of these also varies a bit by channel segment, we’ll address this laterwe’ll address this later

Convenience Only Dual C&P Petrol Only

•Inner city •Suburban strips•Apartment developments

•Tier 1 and Tier 2•Major arterial roads and highways

•Tier 3•Suburban•Some arterial roads

Shopper behaviour changes by channel Shopper behaviour changes by channel segmentsegment

More likely to be:

Convenience Only ShoppersConvenience Only ShoppersWho? Dominated by male adults living at home or CBD

professionalsBoth low and high incomesBut more females in 7ELEVEN than other banners

Why? Missions

Meal, Treat, Express Top Up, Craving, Emergency items

When? Primarily evenings after 5pm, afternoon

How? Shop alone, may be buying for self or otherAround 7 minutes in storePlanned purchase but easily influenced

What? Categories

Many buy drink only (opportunity!)Around a quarter buy fresh mealsUp to a quarter buy snacks & confec= dominated by food & beverage categories… and Telco also sells well

Dual C&P ShoppersDual C&P ShoppersWho? Dominated by male older adult workers (including

tradies and truckies)Middle income

Why? Missions

Service, Treat, Craving (thirst, hunger), Meal (lunchtimes), Destination (milk, bread, newspapers)

When? Primarily lunchtimes, drive times (6-9am, 4-7pm)

How? Shop alone, buying for self Around 6 minutes in storePlanned purchase but impulse purchases alsoTwo thirds straight to the queue after fuel refill

What? Categories

Only around 3 in 10 shop ‘rest of store’ (opportunity!)Drinks, snacks / treats and auto (oil etc.)

Petrol Only ShoppersPetrol Only ShoppersWho? Male younger adult

Middle income

Why? Missions

Service, Craving. Meal if travelled long distance (regional petrol station)

When? Before 9am, 2-5pm

How? Shop alone, buying for self Less than 6 minutes in storeVast majority straight to the queue after fuel refillImpulsive purchases in merchandised queue

What? Categories

Mainly drinks and auto, some confec / snacks

Shopping occasions change priority by channel segment

Half of needs are food! Service here includes internet

Local alternative to supermarket

Convenience Only Dual P&C

More impulse purchases‘On the way’ to

somewhere

Petrol Only

Tap into the service need.

The basics.

1.1. TreatTreat

2.2. MealMeal

3.3. Express top upExpress top up

4.4. EmergencyEmergency

5.5. DestinationDestination

6.6. ServicesServices

7.7. CravingCraving

1.1. ServicesServices

2.2. TreatTreat

3.3. DestinationDestination

4.4. MealMeal

5.5. CravingCraving

6.6. EmergencyEmergency

7.7. Express top upExpress top up

1.1. ServicesServices

2.2. CravingCraving

3.3. DestinationDestination

4.4. TreatTreat

5.5. EmergencyEmergency

6.6. MealMeal

7.7. Express top Express top

upup

Convenience OnlyConvenience Only

Walk in, not driveWalk in, not drive Meals, Express top up, Meals, Express top up,

EmergencyEmergency Higher incomesHigher incomes Some frequent localsSome frequent locals

Range: rte meals, emergency categoriesRange: rte meals, emergency categories Range all food and grocery categories for top-Range all food and grocery categories for top-

up shopsup shops Meals destination in storeMeals destination in store Sign ‘what’s new’ for the localsSign ‘what’s new’ for the locals Ensure telco offer is visibleEnsure telco offer is visible Staff incentives around basket size increase Staff incentives around basket size increase

promotions eg drink + something elsepromotions eg drink + something else

Variation/Emphasis Implication

Express Top UpExpress Top Up

MiniMart opportunity: MiniMart opportunity: Multiple brands per categoryMultiple brands per category•Aisles with category headersAisles with category headers•Specials promoted on exterior Specials promoted on exterior of storeof store

Emergency Emergency

Category headers Category headers to make to make emergency emergency purchases easy to purchases easy to findfind

Dual C&PDual C&P

Variation/Emphasis Implication

Queue paramountQueue paramount Tradies and truckiesTradies and truckies Meals and servicesMeals and services Milk, bread, Milk, bread,

newspapersnewspapers

Merchandise destination items in the queue – Merchandise destination items in the queue – messaging and POS by daypart/occasionmessaging and POS by daypart/occasion

Tradies and truckies lunch dealsTradies and truckies lunch deals Destination meal area of storeDestination meal area of store Total Services offer for women – oil, water, tyre Total Services offer for women – oil, water, tyre

checks with while-u-wait coffee and car washchecks with while-u-wait coffee and car wash

Services Services

Increasing service portfolio drives frequency Increasing service portfolio drives frequency and destination:and destination:•DVD rentals (since they’re there for snacks DVD rentals (since they’re there for snacks anyway!)anyway!)•LotteryLottery•Dry cleaningDry cleaning•Photo processingPhoto processing

Petro OnlyPetro Only

Variation/Emphasis Implication

The basics expected, The basics expected, anything else a bonusanything else a bonus

All about autoAll about auto Services and cravingsServices and cravings Younger shoppersYounger shoppers

Merchandise destination items in the queue – Merchandise destination items in the queue – messaging and POS by daypart/occasionmessaging and POS by daypart/occasion

Auto care products merchandised in the queue, staff Auto care products merchandised in the queue, staff persuasion for add on sales – coolant, oil etcpersuasion for add on sales – coolant, oil etc

Services for women – oil, water, tyre checksServices for women – oil, water, tyre checks Telco products merchandisingTelco products merchandising Drinks biggest opportunity/craving – ensure coolers Drinks biggest opportunity/craving – ensure coolers

in queue/front of storein queue/front of store Ensure basics covered – adequate lighting, clean, Ensure basics covered – adequate lighting, clean,

uniform fixtures, merchandised queue, and shoppers uniform fixtures, merchandised queue, and shoppers can see in!can see in!

Services Services

Driveway service (for women):Driveway service (for women):•Water, oil and tyre checks etc (at a fee!)Water, oil and tyre checks etc (at a fee!)•Cross promote with while-u-wait coffeeCross promote with while-u-wait coffeeApplies to Dual C&P alsoApplies to Dual C&P also

SummarySummary

Leverage natural shopper occasions Leverage natural shopper occasions and daypartsand dayparts

Make it easy for them – overdeliver Make it easy for them – overdeliver on solutionson solutions

Tailor execution by channel segment.Tailor execution by channel segment.

Questions?Questions?

Norrelle GoldringNorrelle GoldringM: 61-411-735 190M: 61-411-735 190E: E:

norrelle@moxiemarketing.comnorrelle@moxiemarketing.com.au.au

3 Burton St3 Burton StLinley Pt NSW 2066Linley Pt NSW 2066P: 61-2-9427 7473P: 61-2-9427 7473W: www.moxiemarketing.com.auW: www.moxiemarketing.com.au

Lee McAllistairLee McAllistairM: 61-414 941 585M: 61-414 941 585E: E: lee@moxiemarketing.com.aulee@moxiemarketing.com.au

Thank You.Thank You.