April 2007 TEMPTING TAKE-AWAYS FRESHENING THE FRIDGE BOXED HOME THEATRE DAIRY WITH A DASH TAKING A UNIFORM APPROACH FOREWORD Welcome to the April 2007 issue of the INformer. It’s been great catching up with members in the capital cities during the last two months. I love getting out on the road to meet and talk with you directly and it is also good to renew friendships outside of the national conference. By your feedback, business continues to be good. The members in regional Australia needn’t feel they have missed out. We are planning the same roadshows for you during July and August, so again I look forward to catching up with you all. UCB continues to grow and, also importantly, to grow in respect from suppliers. They are very important. Without their support we would all be where we were a few years ago, depending on the local salesperson (who hasn’t got the time) to give us the information and support we need to run a successful business and compete against the big boys. I am very pleased with how Simon, Andrew and Fred under the direction of Darren are making the monthly promotional program better and better. I am sure you join me in thanking them for the effort they put in on your behalf to give you the edge in monthly specials. Remember we are only as good as your continued support of the monthly promotions, so keep building those displays and getting your staff to up-sell the specials to your customers. By the way, don’t forget to give us feedback. Good or bad, we do really take it on board. The roadshows we have been holding have focused on the results from the customer research we under took with HIM Australia called Convenience Tracking Program (CTP). The key results from this survey are: • Fast processing of customers – two is a queue! Focus on this in your store. Have a bell to alert any staff members doing stock work that they need to come to the counter to serve customers. • Friendly staff – get to know your regular customers. They’re 10 per cent of your customers but 25 per cent of your shop sales. • Three key products – make sure you’re never out of stock of milk, bread and Reg Johnston newspapers. Over the coming year, you will see us working with suppliers to help make sure we are in stock of these items – always. The average shop purchase is worth $8.65 yet the average shop purchase of the bread and milk shopper is worth $25. Imagine if you could increase the percentage of shoppers purchasing milk and bread from your store from the present two per cent to four per cent and double this to around eight per cent. What would that do for your shop sales? This is an achievable increase without having to chase any more customers! • Our key customer is the tradie, so make sure you have a good pie offer available from early morning. At our own site at Wetherill Park, we sell more pies and pastries before 10am than we sell after 10am. These tradies also buy lots of flavoured milk, soft drinks and – if you have good coffee offer – coffee. So we hope you are excited as we are about using the CTP data to improve your customer spend in your store. Don’t forget the national conference this year: October 30-31 at Conrad Jupiters on the Gold Coast. I hope you enjoy this edition of the INformer and I wish you profitable retailing. Reg 2 the INformer 4 Real Fruit UP&GO I SANITARIUM 5 WIN 1 of 3 Pool Rooms I ICE BREAK 6 Make Mine Milk 9 An Australian first from an Australian brand I DAIRY FARMERS 10 The best in boxed sound I 13 Happy 1st birthday I COCA-COLA ZERO 13 14 Refrigerated Refreshment 16 Real bean expresso coffee I THE ESSENTIAL CAFE 17 Red Embers NEW bakery range I RED EMBERS 18 Taking care of take-away I 23 The NEW Four’N Twenty Hungry Man I PATTIES 24 Newspaper sales soar by 20%, UCB members pocket a fortune 25 Get your West Australian stand 25 Fantastic Freebies I MASTERFOODS 26 26 Free bars 1 in 6 WINS I MASTERFOODS 27 Grow your impulse sales I WRIGLEY 28 Making c-store sales I ATMP 30 Smoke Signals 32 60 Seconds with Swanno 34 A uniform approach to marketing 36 Maximise your recharge margin I MILLS DISPLAY 38 What can card connection offer you I CARD CONNECTION 39 Magnum & Liz Hurley – a second burst of the winning combination I 42 STREETS 40 UCB heats up your ice cream sales 42 Fire up your profits this winter I REDHEADS 44 Mother – a force of nature I COCA-COLA 3 4 M ILK M ILK 5 M ILK MAKE MINE MILK The dietary experts say we Dairy Farmers is one of UCB’s major Dare range through its two best suppliers and it has three core sellers – Espresso in NSW and need calcium in our diets flavoured milk brands to meet the Queensland and Double Espresso and milk is one sure way various tastes and need-states that in Queensland only.” consumers have. to get it. For most of us, Justin says the category is flavoured milk is a better Dare is the dedicated iced coffee growing at a rate of seven per brand, and is the highest growing cent nationally (MAT 14/1/07), with alternative. We talked iced coffee milk in the market (+67 the fastest growth coming from to UCB’s dairy suppliers per cent growth: latest AC Nielsen Queensland (9.7 per cent) where data MAT 14/1/07). The OAK brand consumers have really embraced to find out what’s now has a fresh new look thanks the iced coffee phenomenon. happening… to a new packaging design as well as a new TV and radio campaign, “Interestingly, the highest growth while the Moove brand dominates in iced coffee in Queensland is Flavoured milk is one of the the teenage market through its coming from the relatively new stalwarts of the c-store fridge, its wide selection of flavours, pack segment of the dedicated iced popularity is consistent throughout sizes and pack types – including its coffee 750ml pack-size, where the the year as far as the customers are innovative pop-top designed bottle. segment is growing in value at 16 concerned. per cent this quarter compared with According to Justin Finney, National a year ago. The larger and more Manufacturers are adamant that Business Manager – Convenience, traditional 500ml dedicated iced the convenience channel is vital for for Dairy Farmers, a major reason coffee segment is also growing at flavoured milk sales. C-stores reach for Dare being the fastest growing 10.5 per cent.” consumers who are time-poor and iced coffee in convenience is due to want an easy and quick solution three new products that have hit the One of the major contributors to the to meet their food and beverage market within the last 12 months. growth is consumer demand for needs. healthy products. Manufacturers of “The first was Dare Double all types of food and beverage are For retailers, it’s good news that Espresso 500ml which is now the noticing this and responding to it the category is growing; the only fourth highest-selling flavoured milk and Dairy Farmers is no exception. problem is knowing who are the product in NSW convenience. In winners in terms of making space in October last year we introduced “This trend is playing a major role in an already overcrowded fridge. the 750ml pack size for the the growth of flavoured milk. 6 “Our Just Natural brand comes in “Our experience leads us to believe Again, the best advice is to M two variants, full fat and 99 per cent successful promotions drive sales concentrate on stocks to maximize ILK fat-free, and as a brand is growing if they appeal to the target market sales. While flavoured milk is a at 34 per cent MAT (14/1/07), which and provide strong cut-through for favourite all year round, it pays is well above the market growth the product, so throughout 2007, we to check your own figures to see rate. The fast-growing Dare brand will have a number of promotions whether you have specific peak also has a fat-free variant – Dare for our products that will be will selling times. Cappuccino Iced Coffee – which is strategically placed to maximise our 98 per cent fat-free.” share of the flavoured milk market.” “Given the majority of flavoured milk sales come from coffee While there’s no arguing the Fonterra sees c-stores as its variants, retailers need to ensure popularity of the product, Justin greatest potential growth area they’re adequately stocked on says the smart retailer will ‘work’ and is committed to working with these products in particular,” says their fridge to its best advantage. retailers to maximize that potential. the Fonterra spokesman. “Having the correct range and “Depending on how you define “It’s important to have strong selling stockweight is imperative for ‘convenience’, the majority of products in highly visible shelf maximum sales. This includes a flavoured milk sales are from positions with adequate facings. variety of brands and flavours to convenience outlets,” says the This will maximise sales due to reach a wide portfolio of consumer company spokesman. the impulse nature of consumers’ segments as well as stocking up on decision making – they see, they the top-sellers by increasing facings “Due to the impulse nature of like, they buy.