Buy Smart and Save Multi-unit pricing - Core-Mark

MULTI-UNIT PRICING
Core-Mark’s customized multi-unit POS program
Compete for Every Dollar
The strategy
of multi-unit pricing
KING DOLLAR % CHANGE
Large C-Store Chain Impact Example
Every time a customer enters your store, an opportunity exists to strengthen your relationship with that consumer,
capture additional revenue and make a case for their business, with future trips to your store.
$2.29M
$2.01M
$2.48M
One effective way to build a relationship with your customers while increasing your sales is through multi-unit
pricing. For the first
35 time ever, Core-Mark now offers a Multi-Price POS ordering website where you can customize
31.30%
signage for Candy,
30 MIlk and Water. Now you can give your customers the options they are searching for.
23.3%
25
17.70%
20
15.10%
14.6%
15
10
5
Candy
0
-5
1.9%
4.3%
3.5%
-7.2% -16%
-13.3% -12.3%
Q1 `07 Q2 `07 Q3 `07 Q4 `07 Q1 `08 Q2 `08 Q3 `08 Q4 `08 Q1 `09 Q2 `09 Q3 `09 Q4 `09
King Avg Qtr
Multi-Price
How
You-10Can DriveCycled
Sales in The Right Direction.
Reintroduced
Introduced
the Intro
-15
Multi-Pricing
in 2006
The candy
commodity
provides
a
49.7% gross margin. Two key steps that help you get the most out of your
-20
candy categories are:
• Leverage impulse purchases with multiple displays, offering merchandise for variety and true profit.
• Apply a multiple-price point strategy to drive sales.
Multiple price points drive sales and profitability in the convenience class of trade.
Everyday multiples deliver the best results for customers. An estimated 35% take rate
on both standard and king size.
KING DOLLAR % CHANGE
Large C-Store Chain Impact Example
Multi-Price
Introduced
in 2006
Cycled
the Intro
Removed the
multi-pricing
Reintroduced
Multi-Pricing
35
30
25
in Millions
20
15
10
5
0
-5
Q1`07
Q2`07
Q3`07
$2.29M
Q4`07
Q1`08
Q2`08
Q3`08
$2.01M
Q4`08
Q1`09
Q2`09
Q3`09
Q4`09
King Avg Qtr
$2.48M
-10
-15
-20
At this take rate, standard bars will
deliver a 26.3% increase in profit and
king size will deliver a 23.7% increase.
Water
100% Mountain Spring Water can help catapult your 1-Liter business!
Nestlé Waters 1-Liter, 2 for $2 promotion drove a national C-store Retailer’s business sales growth of 22% versus last year!*
* Source: National C-Store Retailer, May-July 2010 vs. May-July 2011
National C-Store Water Sales
with promotion
+4%
+22%
84.2
87.3
2010
2011
+14%
2010
18.5
2010
2011
Unit Volume
APSD
Take Rate
National C-Store Water Sale
with promotion
100% Mountain Spring Water
C-Store Share** 2011 YTD share
25
20
16.2
2011
22.0
15
15.0
10
13.6
10.6
11.5
static clings drives
+22% to the promotion
attention
regional brands available
5
0
2010
Arrowhead
Nestlé Pure Life
Aquafina
Dasani
Private Label
** Source: Nielsen C-Store, Total Bottled Water, YTD through July 16, 2011
2011
Unit Volume
+14%
18.5
2010
16.2
2011
APSD
Improve Your Sales With Signage
What’s Your Plan?
“2 for…” channel strips, shelf talkers, cooler clings
and posters are ready for you to customize online at
www.core-mark.com/buysmartandsave, use the registration
code “coremark”.
For more details contact your Core-Mark representative.
Consumers are looking for value.
Grab their attention with signage!
Channel Strips
Shelf Talkers
Cooler Clings
1685 7/2012
Single & Double Sided Posters