Convenience Store Vendor Programs Are Not Overwhelming! Really!

With programs abound to take over the cooler doors, shelf space, end caps, checkout counter space, window signage, curb side signage, pump toppers, fountain machines and yes, even your employees uniforms what separates one convenience store from another?

Convenience stores in general have succumb to the pressures of Madison Avenue and have trended towards the path of grocery chains by limiting their own personal touch and vision and granting "the Programs" control over merchandising, marketing and yes, customer service. But to not participate in these programs puts you, your chain and your profitability at a serious disadvantage. So how can you maintain control and participate in the programs as well?

First thing is to investigate what programs are available to use in your facility. While you are doing this have seven sets of plans drawn up for your facility. These are:

1. Top view of the complete facility including all streets bordering the facility

2. Top view of the complete interior of the store. Include all gondolas, islands, cooler doors, etc...

3. Top view and detail of the checkout lanes. Include register placement and all countertop hardware.

4. Glass view of all visible sides of the facility (looking at glass view)

5. Front view of all cooler doors. Include all shelf placements within each door.

6. Top view of all gas islands. Include locations of each pump, poles, end caps, etc...

7. Front view of fountain area. Include all wall space behind.

note: You can also take this to a shelf by shelf level on all gondolas within the store. This can be an advantage if you use do not use a plan-o-graming service provided by an outside vendor.

So now you are armed with all available programs, their specific requirements, and plans of all affected areas of the facility.

Start filtering the programs out based on the following:

1. Is it a short term program? If so place it aside for now to revisit later.

2. Does the program require more space for signage, product faces, etc... than your facility can offer? If so place it aside.

3. Does another program conflict? (tobacco and cooler door programs can and do conflict between vendors) Set the conflicting programs aside for the moment. We will revisit this one shortly.

4. Is the program based upon a product that either you cannot sell or that your customers have a proven history of not buying? If so place these programs aside.

5. Is the program based on a new product class with no proven history of sales inside or outside your facility? If so place it aside for now.

Now we have left the programs which are based upon viable products for your facility, meet with your physical facility and can be implemented without conflict.

Take your plans and identify (in pencil of course) the facings, signage and other requirements of these programs. Remember that each facility is unique and that sometimes a conciliation needs to made by the vendor (one sign for another, etc...). Now you should have these all documented on your plans. Calculate the program revenue at this point. See if you are at a competitive level.

Now let's look at the hardest one, the conflicting programs. These are normally in areas of high competition and constant vying for market share such as cooler doors, tobacco products and fountain. Under normal circumstances a choice needs to be made that does give competitive advantage to one vendor over the other. Depending on your purchasing power and sales generation, negotiation can be fun and very satisfying. For example, the tobacco industry recognizes 2 positions minimum around a register. A primary and a secondary location can assist you in negotiations due to having options available. The same applies to cooler doors. Vendors recognize not only a primary door but also primary shelves within a door. Having options here also assist the negotiations.

Take the time to work with each vendor on these as since they are in competitive areas they normally also have the highest rewards. But also remember that maximizing the program without giving up the look of your facility is critical. Once you get to a point that a decision has been made show these program requirements on your plans. Recalculate your program revenue at this point and see if you are at a competitive level.

Next let's look at the new product programs. These programs can be very exciting for your customer as new products keep them coming back to see what's next! Primary end caps work great for these types of programs. But remember that if a new product works out well you will need to work it into your normal plan-o-gram after the promotion ends to keep the new customers happy. Be prepared! One of the best in the way of marketing end caps is Best Buy. Each end cap is set fresh on a monthly basis and represents a strong reason for the consumer to be there either by price, features or branding. End caps are primary real estate in any retailer and should be maximized for your customer at all times. Empty end caps, lackluster products and poor values being present on an end cap cost you image and customers.

Now let's look at short term programs. Identify areas that are not used by ongoing programs and see if opportunities are available for these seasonal promotions. If not try to be creative and create opportunities. As seen in the new product program area the short term seasonal programs create change and excitement within your store.

Your store plans should be getting pretty full at this point. Recalculate your program revenue once again and I am sure that you will find that you are not only competitive but also have an advantage over other stores nearby.

Lastly, now that you have your plans in place it is time to implement them. Some of these changes will need to be made by staff, some with corporate assistance and most with vendor assistance. Plan the changes well. Set up appointments for each vendor as you need them to be in the store, with electrical and plumbing contractors and with supervisors to make the transition seamless to the customer. Major resets are best done after hours or in the wee hours of the morning. Other resets need to be booked during slower periods of the day. Give availability charts to vendors representatives for best times of the day to visit the store, etc...

Now it all comes down to your store team keeping it up...

Look for our next article on "The Store Team".