the changing dynamics of convenience store retailing
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THE CHANGING DYNAMICS OFCONVENIENCE STORE RETAILING
Scope Of The Stores Represented In The Audience
1. Type Of Organization: Almost half the respondents (46%) work at c-store chains (headquarters or store locations). And almost half (45%) work at independently owned c-stores (single stores).
% RespondentsSUBTOTAL, CHAINSTORES
Independently ownedc-store (single store)
C-store franchisee
C-store licensee
Other
2. Number Of C-Stores Operated: On average, those who work at chains, work at organizations that operate 534 stores (median = 45).
3. 2010 C-Store Revenues: Average projected 2010 c-store sales revenue, companywide, for chains is $540,080,000 ($2,485,000 for independents).
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
Chains Indp'ts.
0
100
200
300
400
500
600
Chains Indp'ts.
Average:
0
20
40
60
80
100
120
Total Chains Indp'ts.
% Respondents
DecreaseNo changeIncrease
4. Sales Trends: Year to date, compared with 2009, c-store chains project an increase in sales revenues of 2.6%, and an increase in units sold of 1.3%.
Independent operators project a 0.6% decline in revenues and a 0.7 decline in units.
0%10%20%30%40%50%60%70%80%90%
100%
Total Chains Indp'ts.
% Respondents
DecreaseNo changeIncrease
The Audience’s Personal Buying Power
1. Titles: Across the
CSNews/CSNews SSO
audience, two-thirds (67%)
of the respondents are
Senior Management
(owners/partners, corporate
managers, directors or
general managers).
2. Responsibilities For
C-Store Operations:
Extensive management
level responsibilities for
c-stores.
0
10
20
30
40
50
60
70
80
90
Chains Indp'ts. Total
% RespondentsOwner/partner, Corporatemanager (chairman, CEO, COO,president)
Director, general manager
SUBTOTAL, SENIORMANAGEMENT
Buyer, merchandising, marketing,category manager
Regional or districtmanager/supervisor
Store manager
Other
0
10
20
30
40
50
60
70
80
90
Chains Indp'ts.
% RespondentsPlanning
Marketing/merchandising
Financial/budgeting issues
Selection/purchases of products for resale
Personnel management
Sales revenue generation
Store maintenance
Construction/renovation of stores
Information/communications systems
Transportation/warehousing/distribution
3. Number Of Stores Affected By Audience’s Decisions:
The decisions made by chain store audience members affect
an average of 77% of their organization’s c stores (77% of an
average 3. Number Of Stores Affected By Audience’s Decisions:
The decisions made by chain store audience members affect
an average of 77% of their organization’s c-stores (77% of an
average of 534 stores = an influence of 411 stores per person).
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Total Chains Indp'ts.
Average
4. Level Of Responsibility For
Key Business Issues:
The Large majority of the
audience has responsibility and
accountability for four major
issues that impact suppliers ...
Including:
• Offering the right mix of products to consumers (87%)
• Using effective marketing/merchandising approaches (92%)
• Sales results (92%)
• Margins/profitability (91%)
5. Involvement In The Selection Of Suppliers And Products: Virtually all professionals reached by
CSNews/CSNews SSO (93%) have responsibility for the “selection of suppliers and products for c-stores.”
Nine of ten are involved in the early stages (85%), 90% are involved in the middle stages, and 82% in the final
stages of selection.% Respondents
0 20 40 60 80 100
Total
SUBTOTAL, INVOLVED IN BRANDSELECTION
Approve the supplier/brandrecommendations of others
Share in final decisions with others
Usually make the final decisions myself
Negotiate with suppliers
Recommend/specify suppliers/brands tocarry
Educate/inform others in ourorganization about the alternatives
Compare the various alternatives(quality/specs/margins/etc.)
Meet with suppliers
Research/recommend suppliers/brandsto evaluate
Prepare objectives, plans and/orbudgets
Determine opportunities/problemsrelative to suppliers/products
6. Involvement In Sale Of Products:
Virtually all audience members (91%) have responsibility for the sale of products in c-stores.
% Respondents
0 10 20 30 40 50 60 70 80
Total
Involved in training personnel onselling/merchandising
Report and/or assess performance,revenue, profitability issues
Obtain/analyze intelligence or feedbackfrom consumers
Determine and/or develop productdisplays
Determine seasonal sales opportunities
Determine advertising approaches(which products/brands to promote, etc.)
Determine other in-storepromotion/merchandising
Work with suppliers on merchandisingissues
Develop product pricing
Determine which products/brands willbe featured in stores
Involved in store design/layout
Determine which products/brands willlikely appeal to customers
Involvement In Decisions ForSpecific Product Categories
Total Respondents
0 20 40 60 80 100
Sub-Total
k. Technology products and services(e.g., POS, business intelligence, etc.)
j. Automotive products
i. Petroleum products (gasoline, oil, etc.)
h. General merchandise (incl. health &beauty aids)
g. Edible groceries
f. Snacks (sweet and salty)
e. Candy/gum
d. Beer/wine/liquor
c. Packaged beverages (nonalcoholic -soda, juice, milk, etc.)
b. Foodservice(consumables/equipment)
a. Tobacco products (cigarettes, chewingtobacco, etc.)
CONCLUSIONS:
The CSNews/CSNews SSO audience is made up of senior c-store managers who have multidisciplinary
management responsibilities ... including planning, financial management and marketing/merchandising.
The decisions of those at chains impact 411 stores per audience member.
They have extensive responsibilities for both the “buy in” of suppliers and products, and the sale of
products in c-stores. Those responsibilities span the spectrum of all major product categories.
Therefore, suppliers seeking to make ongoing contact with those who control the destiny of individual
suppliers and brands at c-stores, will make contact at that level through the CSNews/CSNews SSO suite
of media.
Purchasing Dynamics At C-Store Chains
1. At C-Store Chains - Levels At Which Major
Decisions Are Made: When c-store chains are
Making major decision about which products/brands
to sell, eight of ten (84%) involve decision-makers at
The headquarters level, almost half (42%) at the
store level, and a third (31%) at regional offices.
% Respondents
Headquarters
Regional offices
Store-level
Other
2. At C-Store Chains - The Influence Of
Individual C-Store Managers: Given that stores
can be located in areas with different ethnicity,
income, urban/rural settings, etc. -- 83% of the chain
store respondents indicated that their individual
c-store managers influence the selection of
products that are sold.
% Respondents
0 10 20 30 40 50 60
No real influence
Moderate influence
SUBTOTAL, VERYSTRONG + STRONGINFLUENCE
Strong influence
Very strong influence
4. At C-Store Chains - Trend In The Number OfPeople Involved In Major Decisions: Compared to 3 - 4 years ago, a third of the chains (32%) are now involving even more people in the decisionmaking process.
At C-Store Chains - Number Of People InvolvedIn Major Decisions: In total, when those major product decisions are being made, an average of9.1 many people are involved, at all levels (median= 5.0).
% Respondents
0 20 40 60
FewerAbout the sameMore
5. At C-Store Chains - Why More People Are Involved In Major Decisions: The leading reasons for
involving more people in the product/brand decision process are “we want input from those who have different
perspectives (75%), and “to achieve ‘buy in’ from those at different levels” (75%).
• We want input from those who have different perspectives 75.0
• To achieve “buy in” from those at different levels 75.0
• To share the responsibility of major decisions 45.8
• There’s now more at risk with each decision (order size, consumer trends, etc.) 29.2
• There’s more pressure to get the decision right the first time 29.2
% Respondents
7. At C-Store Chains - Frequency Of Suppliers
Calling On All Decision Makers: Those who
make major brand decisions at chains are often
difficult for supplier/distributor reps to contact ...
with half (49%) indicating that reps only
“sometimes/rarely/never” get to contact all of
those who are involved in such decisions.
8. Whether C-Store Chains Sell Private Label
Products: Exactly half (50%) of the c-store chains
sell their own private label products.
CONCLUSIONS: At c-store chains, major decisions about the selection of brands and products involve multiple business levels. In addition to the headquarters level, almost half involve store-level personnel and a third involve regional office staff members.
In fact, more than three-quarters of chain store respondents report that individual store managers influence the selection of products that are sold in their stores ... due to varying ethnicity, income, geographic settings, etc.
Today, an average of nine decision makers are involved in major product decisions ... many of whom suppliers cannot contact via reps with any degree of frequency.
Therefore, suppliers must market their products at all levels at c-store chains. In addition, given that manydecision makers often cannot be seen by reps, the investment in communications media that penetrate at all levels becomes even more vital.
% Respondents
0 20 40 60
Rarely/neverSometimesFrequentlyAlways
Trends Affecting The BRANDING Of Products Among C-Store Decision Makers
Number Of Suppliers Attempting To Place Products In C-Stores:
0
10
20
30
40
50
60
70
80
90
100
% With Suppliers AttemptingTo PlaceProducts In Their
Stores
Avg. # Suppliers
% Respondentsa. Tobacco products (cigarettes,chewing tobacco, etc.)
b. Foodservice(consumables/equipment)
c. Packaged beverages(nonalcoholic - soda, juice, milk,etc.)d. Beer/wine/liquor
e. Candy/gum
f. Snacks (sweet and salty)
g. Edible groceries
h. General merchandise(incl.health & beauty aids)
i. Petroleum products (gasoline,oil, etc.)
j. Automotive products
k. Technology products andservices (e.g., POS, businessintelligence, etc.)
2. Trend In The Number Of New/Improved
Products: Compared to 3 - 4 years ago, more
than half the professionals (57%) report there are
now even more new/improved products they could
potentially carry in their c-stores. Only 12%
indicate there are fewer products.
3. Percent Of New/Improved Products That Get
Placed On Shelves: However, each year, an
average of only a fifth (22%) of the new/improved
products that suppliers want to place in c-stores,
actually get onto the shelves (median = 15%).
4. Number Of Brands Carried In C-Stores**:
Across the stores represented by each
professional, there are an average of 773 different
brands carried (across all product categories)
(median = 200). This increases dramatically at
c-store chains (average = 1,185).
% Respondents
0 10 20 30 40 50
Total
Fewer
About the same
More
Far more
21.00%
21.20%
21.40%
21.60%
21.80%
22.00%
22.20%
22.40%
22.60%
Total Chains Indp'ts.
Average:
0
200
400
600
800
1000
1200
1400
Total Chains Indp'ts.
Average:
5. Number Of Brands** Attempting To Place
Products In C-Stores: And professionals report
there are an average of 2,327 different brands
that suppliers attempt to place in their c-stores
(median = 200).
**Example provided: Bud Light counts as a single brand.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Total Chains Indp'ts.
Average: Median:
6. Trend In The
Complexity Of Branding
Products: Compared
to 3 - 4 years ago, the
environment for branding
products with c-store
decision makers is even
more difficult.
% Respondents
0 20 40 60 80
Much MoreComplex
More Complex
e. Determine which newbrands to seriously evaluate
d. Learn the differencesamong new and existingproducts
c. Learn the attributes of eachnew brand as they affect youand consumers
b. Stay aware of the array ofindividual new brands
a. Stay current withnew/modified productcategories
7. How Open Decision Makers Are To Evaluating New/Different Suppliers: Compared to 3 - 4 years ago -- more than half of c-stores (58%) are now more open to evaluating suppliers with
whom their companies do not now do business.
% Respondents
0 10 20 30 40 50 60 70
Total
Chains
Indp'ts.Subtotal, Less +Much Less Open
Subtotal, MuchMore + More Open
Number Of Suppliers That Decision Makers Talk With Each Week:
10. Whether Distributor Reps Have Time To Differentiate
The Brands They Carry: Only a third (38%) of the
professionals report that distributor reps “frequently” have
time to differentiate
6.2
6.4
6.6
6.8
7
7.2
7.4
Total
a. Face-To-FaceAverage:
b. Via TelephoneAverage:
% Respondents
0 10 20 30 40 50 60 70 80
Total
Chains
Indp'ts.
Subtotal,Sometimes +Rarely + Never
Subtotal, VeryFrequently +Frequently
% Respondents
0 20 40 60 80 100
Total
Chains
Indp'ts.
No
Yes
11. Decision Makers Prefer To Have Prior
Knowledge Of Products Before Giving Them
Serious Consideration: (84%) prefer to have
already gained insight into the company or product
via its communications programs.
% Respondents
0 10 20 30 40 50 60 70
Total
Chains
Indp'ts.
Supplier/distributor reps
SUBTOTAL, THE MEDIA
Trade shows
Direct mail/e-mail from suppliers
E-newsletters
Websites from magazines orrelated sites
Industry magazines
12. Where Decision Makers
First Obtain Information
About Brands For C-Stores:
Professionals indicated
where they first obtain most
of their information about
new/improved product
categories and brands.
13. Ways In Which Suppliers Can Move More Quickly Through The Branding Process:
(96%) believe suppliers can help retailers evaluate their brands and arrive at decisions
more quickly if they communicate with them more effectively.
% Respondents
0 10 20 30 40 50 60 70 80
Total
Chains
Indp'ts.
Communicate moreoften aboutdifferencesbetweencompetitive lines
Educate us moreeffectively beforesales reps call todiscuss new lines
Communicate moreoften aboutattributes/advantages of new lines
Communicate moreoften about newproduct lineavailability
CONCLUSIONS:
C-store decision makers are faced with making decisions across a wide range of product categories, multiple suppliers per category, and thousands of potential brands that could be sold. And each year, even more new/improved products are introduced (with only a fraction actually making it to c-store shelves).
Professionals therefore report that it has become even more complex to stay aware of new product categories and individual brands, and learn their attributes and differentiations. Plus it is now more difficult for them to determine which new brands to seriously evaluate. Yet, most decision makers say that they are open to evaluating suppliers with whom they do not now do business.
Despite the many suppliers and brands available to them, professionals talk with only a modest number of reps each week. And they report that distributor reps often do not have time to differentiate the many brands they carry.
It therefore is understandable why c-store professionals desire to have prior knowledge of products before seeing reps or giving the products serious consideration. And it is via the industry media where they first obtain that prior knowledge.
In addition, we see that most buyers believe suppliers can do a significantly better job of communicating with them about new products, product differentiations, and so forth.
Therefore, to properly brand their products with decision makers, suppliers should make extensive use of the marketing media that enable contact with those who control brand selection.
The Engagement With/Influence Of CSNews And CSNews Single Store Owner
Frequency Of Going Online For Business Purposes:
0 20 40 60 80 100 120
Total
Chains
Indp'ts.
SUBTOTAL, GOONLINE FORBUSINESSPURPOSES
Once A Month OrMore Often
Once A Week OrMore Often
Once A Day OrMore Often
% Respondents
0 10 20 30 40 50 60 70 80
Total
Chains
Indp'ts. No change
Subtotal, SignificantIncrease + Increase
2. Trend In Going Online For Business
Purposes: And over the next 1 - 2 years, three-
quarters (74%) project they will be increasing their
use of the Internet to access information related to
c-store issues and products (22% projecting a
“significant increase”).
% Respondents
0 20 40 60 80 100 120
Total
Chains
Indp'ts.
Face-to-face conferences/events
Trade show dailies
Web seminars
E-newsletters (“CSNews Daily”,etc.)
Website
Special reports (research,forecasts, etc.)
Magazine
3. Engagement With Media
From CSNews And CSNews
SSO: On average, c-store
professionals are engaged
with 3.3 different media from
CSNews/CSNews SSO.
% Respondents
78 79 80 81 82 83 84
Total
Chains
Indp'ts.
Subtotal, VeryProductive +Productive
% Respondents
0 20 40 60 80 100
Total
Chains
Indp'ts.
To locate products/suppliers whenwe have a specific need
Achieving growth via the properprodu
To compare ourselves with otherc-stores
To gain access to the latest marketintelligence/research
To learn of c-store solutions beingimplemented by peers
To stimulate ideas for newproducts and marketingapproaches
4. The Productivity Of Having A Broad Suite Of
Media: In fact, eight of ten (81%) find it “very
productive” or “productive” to have a broad suite of
related media from CSNews/CSNews SSO -- those
that work together to provide a full spectrum of
content and alternative ways to learn about
products and marketing techniques
Reasons For Engagement With The Suite Of Media:
6. Ways In Which The Editorial Contents Are Used: Virtually all professionals (92%) proactively use
the contents they find in the CSNews/CSNews SSO suite of media.% Respondents
0 20 40 60 80 100 120
Total
Chains
Indp'ts. Subtotal, UseContents AfterReading/Viewing
Subtotal, To HelpForm Opinions/MakeDecisions
8. The Importance Of Unbiased Editorial Content: Nine of ten c-store professionals (85%) indicate
that it is “extremely important” or “important” that the content in their industry media remains
independent of the suppliers who advertise there.
% Respondents
0 20 40 60 80 100 120
Total
Chains
Indp'ts. Not important
Subtotal, ExtremelyImportant + Important+ Somewhat
% Respondents
0 20 40 60 80 100
Sub-Total
e. Influencing youropinions/decisions onproducts/approaches
d. Helping you make moreinformed decisions
c. Understanding theimplications of change andyour options
b. Helping you stay currentwith changes inproducts/approaches
a. Providing you withauthoritative, unbiasedcontent
How CSNews And CSNews SSO CompareTo Other C-Store Media:
% Respondents
90.5 91 91.5 92 92.5 93 93.5 94 94.5 95
Total
Chains
Indp'ts.
Subtotal, All + Most+ Half The Issues
Number Of
Magazine
Issues Read:
12. Trend In Magazine Readership: And CSNews/CSNews SSO magazines will continue to attract strong
readership in the future, with 91% of the audience indicating that, over the next 2 - 3 years, they will spend
either more or the same amount of time with the publications. Only 9% expect to spend less time.
% Respondents
0 20 40 60 80 100
Total
Chains
Indp'ts.Subtotal, Less +Much Less Time
The same amount
Subtotal, More +Much More Time
14. Actions Taken Based On Ads In The Magazine: Within the last 12 months, 94% of the subscribers have taken action as a result of reading advertisements in CSNews/CSNews SSO
magazines ... with 56% doing so electronically.
(57%) have “ordered or recommended that an (advertised) product be carried”, based on seeing products in CSNews/CSNews SSO magazines.
% Respondents
0 10 20 30 40 50 60 70 80
Total
Chains
Indp'ts.
Have not taken action based on ads
Passed an ad on to others
Saved an ad for reference
Asked another member of our team to followup
Discussed the product with others in mycompany
Stopped at the supplier/distributor’s tradeshow exhibit
Spoke with a product’s rep the next time Isaw them
Sent an E-mail to a supplier/distributor
Went to a supplier/distributor Website
Phoned a supplier/distributor
Ordered or recommended that a product becarried
CONCLUSIONS:
Today’s c-store professionals are making extensive use of online resources. As they embrace the Internet, they’ve also embraced the suite of media available from CSNews/CSNews SSO ... with 78% engaged with the brand’s digital media.
The primary reason for their engagement -- to stimulate ideas for new products and marketing approaches. And more than three-quarters use the content to help form opinions and make decisions.
Decision makers believe that it’s important for the content in industry media to remain independent of the suppliers who advertise there ... and they feel CSNews/CSNews SSO is a superior medium in terms of providing authoritative, unbiased content.
CSNews/CSNews SSO magazines remain strong in their attraction to professionals ... generating exceptional readership and exposure, both today and very likely into the future. And professionals clearly read and use the advertisements in the magazines ... with 94% taking action within the last 12 months, and 57% ordering/recommending products that were advertised there.
Therefore, vendors seeking to utilize an integrated mix of print and online media, where decision makers seek out product solutions, will find the CSNews/CSNews SSO brand to be a primary option.
1. How Decision Makers Are Initially Branded On Suppliers And Products: Professionals indicated the
media via which they are most likely to first become aware of and stay current with suppliers of c-store products.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
AverageScore*
All Respondents
CSNews & SSO (magazine,online, newsletter, etc.)
Supplier/distributor reps
Exhibits at trade shows
Another c-store medium
A search engine such asGoogle, etc.
Direct mail/e-mail from suppliers
*The closer to “1.0”, the more the medium is likely to be the one where respondents first become aware of products and suppliers.
2. Media That Best Help Brands Move Through The Product Adoption Process: Professionals were also asked to choose among various c-store media on factors relating to the branding of products.
% Respondents
0 10 20 30 40 50 60 70 80
CSD**
CSNews-C/SSO
CSP
NACS
h. The most influential indetermining the appropriatesuppliers/brands
g. More likely to respond to ads formore information
f. More likely to read the ads
e. More likely to help me determinethe brands to evaluate*
d. More likely to help me learn thedifferences among brands*
c. More likely to help me formimpressions of specific brands*
b. More likely to make me aware ofspecific brands*
a. Where I’m more likely to begin thesearch for products
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