The merchandise incidence opportunity

1. Shopper behaviour in Convenience & Petroleum… and how to leverage itfor improved merchandise purchase incidenceSeptember 2007

2. The merchandise incidence opportunity Source AACS 2007 You can increase incidence by increasing relevance – play to occasions and dayparts

3. Contents • 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

4. 1. C&P shopper occasions by daypart

5. Daypart occasions: Monday-Friday 6am 9am 12noon 3pm 6pm 9pm 12mid Drive time Breakfast Lunch Dinner on the run AM break Healthy snack PM Treat Incl post-school Snacks to stay in/DVD Late night munchies Drive time Dinner prep Emergency runs

6. Daypart occasions: Weekends 6am 9am 12noon 3pm 6pm 9pm 12mid Newspapers Bread & milk Emergency party pickups – Ice, softdrinks Snacks to stay in/DVD Chores – petrol, car wash, Tyres, auto care Dinner prep Late night munchies Cool down (summer) – Ice cream, FCB Emergency runs

7. Executing dayparts: some ‘whats’ Meals Meal Solutions Range ready to eat meals Range fresh fruit & veg Bundles eg mains + desserts + drinks + + Snacks Bundle confec/snacks & bev + +

8. Executing dayparts: some ‘hows’ Queue Merchandising Offlocation Displays • By daypart – portable wheel-in-wheel-outs • Same 1-2 units, restocked with different items • Interchangeable header cards • Gondola ends and in major traffic pathways • Eg between back of store fridges and counter • Occasion or daypart based, ideally Meals Specific area of store, clearly signed Opportunity for cross category occasion promotion in forecourts?!

9. 2. Channel segment execution: key missions

10. Treat Meal Craving Express top up Services Emergency Destination The major missions – they change by daypart The overall priority of these also varies a bit by channel segment, we’ll address this later

11. Shopper behaviour changes by channel segment Convenience Only Dual C&P Petrol Only More likely to be: • Inner city • Suburban strips • Apartment developments • Tier 1 and Tier 2 • Major arterial roads and highways • Tier 3 • Suburban • Some arterial roads

12. Convenience Only Shoppers

13. Dual C&P Shoppers

14. Petrol Only Shoppers

15. Shopping occasions change priority by channel segment Convenience Only Dual P&C Petrol Only Half of needs are food! Service here includes internet Local alternative to supermarket More impulse purchases ‘On the way’ to somewhere Tap into the service need. The basics. • Treat • Meal • Express top up • Emergency • Destination • Services • Craving • Services • Treat • Destination • Meal • Craving • Emergency • Express top up • Services • Craving • Destination • Treat • Emergency • Meal • Express top up

16. Convenience Only Variation/Emphasis Implication • Walk in, not drive • Meals, Express top up, Emergency • Higher incomes • Some frequent locals • Range: rte meals, emergency categories • Range all food and grocery categories for top-up shops • Meals destination in store • Sign ‘what’s new’ for the locals • Ensure telco offer is visible • Staff incentives around basket size increase promotions eg drink + something else Express Top Up Emergency MiniMart opportunity: • Multiple brands per category • Aisles with category headers • Specials promoted on exterior of store Category headers to make emergency purchases easy to find

17. Dual C&P Variation/Emphasis Implication • Queue paramount • Tradies and truckies • Meals and services • Milk, bread, newspapers • Merchandise destination items in the queue – messaging and POS by daypart/occasion • Tradies and truckies lunch deals • Destination meal area of store • Total Services offer for women – oil, water, tyre checks with while-u-wait coffee and car wash Services • Increasing service portfolio drives frequency and destination: • DVD rentals (since they’re there for snacks anyway!) • Lottery • Dry cleaning • Photo processing

18. Petro Only Variation/Emphasis Implication • The basics expected, anything else a bonus • All about auto • Services and cravings • Younger shoppers • Merchandise destination items in the queue – messaging and POS by daypart/occasion • Auto care products merchandised in the queue, staff persuasion for add on sales – coolant, oil etc • Services for women – oil, water, tyre checks • Telco products merchandising • Drinks biggest opportunity/craving – ensure coolers in queue/front of store • Ensure basics covered – adequate lighting, clean, uniform fixtures, merchandised queue, and shoppers can see in! Services • Driveway service (for women): • Water, oil and tyre checks etc (at a fee!) • Cross promote with while-u-wait coffee • Applies to Dual C&P also

19. Summary • Leverage natural shopper occasions and dayparts • Make it easy for them – overdeliver on solutions • Tailor execution by channel segment.

20. Norrelle Goldring M: 61-411-735 190 E: norrelle@moxiemarketing.com.au 3 Burton St Linley Pt NSW 2066 P: 61-2-9427 7473 W: www.moxiemarketing.com.au Questions? Lee McAllistair M: 61-414 941 585 E: lee@moxiemarketing.com.au Thank You.