1. Shopper behaviour in Convenience & Petroleum … and how to leverage it for improved merchandise purchase incidence September 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 6am12mid12noon9am9pm6pm3pm Drive time Breakfast AM break Healthy snack Lunch PM Treat Incl post-school Drive time Dinner prep Dinner on the run Snacks to stay in/DVD Late night munchies Emergency runs

6. Daypart occasions: Weekends 6am12mid12noon9am9pm6pm3pm Newspapers Bread & milk Chores – petrol, car wash, Tyres, auto care Emergency party pickups – Ice, softdrinks Dinner prep Cool down (summer) – Ice cream, FCB Snacks to stay in/DVD Late night munchies Emergency runs

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

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

9. 2. Channel segment execution: key missions

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

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

12. Convenience Only Shoppers Who? Dominated by male adults living at home or CBD professionals Both low and high incomes But more females in 7ELEVEN than other banners Why? Missions Meal, Treat, Express Top Up, Craving, Emergency items When?Primarily evenings after 5pm, afternoon How?Shop alone, may be buying for self or other Around 7 minutes in store Planned purchase but easily influenced What? Categories Many buy drink only (opportunity!) Around a quarter buy fresh meals Up to a quarter buy snacks & confec = dominated by food & beverage categories … and Telco also sells well

13. Dual C&P Shoppers Who?Dominated by male older adult workers (including tradies and truckies) Middle income Why? Missions Service, Treat, Craving (thirst, hunger), Meal (lunchtimes), Destination (milk, bread, newspapers) When?Primarily lunchtimes, drive times (6-9am, 4-7pm) How?Shop alone, buying for self Around 6 minutes in store Planned purchase but impulse purchases also Two thirds straight to the queue after fuel refill What? Categories Only around 3 in 10 shop ‘rest of store’ (opportunity!) Drinks, snacks / treats and auto (oil etc.)

14. Petrol Only Shoppers Who?Male younger adult Middle income Why? Missions Service, Craving. Meal if travelled long distance (regional petrol station) When?Before 9am, 2-5pm How?Shop alone, buying for self Less than 6 minutes in store Vast majority straight to the queue after fuel refill Impulsive purchases in merchandised queue What? Categories Mainly drinks and auto, some confec / snacks

15. Shopping occasions change priority by channel segment Half of needs are food! Service here includes internet Local alternative to supermarket Convenience OnlyDual P&C More impulse purchases ‘On the way’ to somewhere Petrol Only Tap into the service need. The basics. 1. Treat 2. Meal 3. Express top up 4. Emergency 5. Destination 6. Services 7. Craving 1. Services 2. Treat 3. Destination 4. Meal 5. Craving 6. Emergency 7. Express top up 1. Services 2. Craving 3. Destination 4. Treat 5. Emergency 6. Meal 7. Express top up

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

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

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

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

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