nothing can build sales and · 2014. 10. 13. · maximize property use, attract new and additional...
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Supermarkets have proven that adding fuel builds sales and profits
better than anything else that can be done. Adding fuel also helps
maximize property use, attract new and additional traffic, and adds an
additional profit center to the bottom line. The fuel center with fuel
rewards is truly an unbeatable tool that can enable retailers to compete
at the highest level with creativity, quality, and a product that all
customers require.
Many supermarkets are able to increase store sales at an astonishing
rate with an aggressive reward program. Our average supermarket
customer has increased store sales with an on-site fuel center and fuel
rewards program by 9% in the first year. The most amazing fact is that
many retailers see these kind of increases in supermarket sales for
multiple years following the opening of their fuel center.
Duncan Oil specializes in building fuel facilities and supplying fuel to
the retail supermarket industry. Our staff is dedicated specifically to the
needs of the independent supermarket owner. We provide a turnkey
fuel center construction program for retailers interested in adding fuel
to their site. The program consists of a site review, economic
forecasting, engineering, building, fuel supply, fuel management, fuel
center support, and marketing.
Duncan Oil has been able to leverage our high fuel volume and
number of customers to enable us to offer all of our fuel center
accounts top tier gasoline and diesel products at a low, competitive
price. Together, with assured supply , an extremely cost effective
logistics program, and real-time regulatory reporting, the overall
Duncan Oil offering proves each day why it is the industry leader
sought after by wholesalers and retailers across the United States.
Nothing can Build Sales and
Profits like Adding Fuel!
Supermarket Fuel Center
Opportunities
Statistics via Energy Analysts International, Inc.
Supermarket Fuel Center
Growth Trends
• Site Population
– Approx. 5,000 Hypermart retail fuel centers
– Approx. 3,000 Supermarket fuel centers
• Growth Rate
– Projected 15 new Hypermart retail fuel
centers built per month
• Hypermart Market Share
– Nearly 17 billion gallons of fuel sold annually
– 11.6% of all fuel sales come from Hypermarts
– Expected to continue growth to 14% market
share by 2015
Statistics via Energy Analysts International, Inc.
Supermarket Fuel Center
Growth and Distribution
Statistics via Energy Analysts International, Inc.
Supermarket Fuel Center
Growth Trends
Current nationwide trends are enabling
growth within the Hypermarket industry:
• U.S. gasoline production capacity surplus
continues to grow.
• Aggressive wholesale and spot markets
provide a lower-cost product.
• Unbranded and Private Label gasoline sales
continue to grow with widespread acceptance.
• Higher fuel prices drive traffic to Hypermarts
with the perception of lower prices.
• Supermarket Rewards/Loyalty programs
incentivize your customers to purchase from
your fuel center, as well as spend more in your
store to save more. Statistics via Energy Analysts International, Inc.
Increasing In-Store Sales
Marketing Options
• Market Basket
This method provides a “cents off”
reward for the customer’s total
supermarket purchase amount.
• Individual Item Reward
This method provides “cents off”
rewards for specific items purchased
within the supermarket.
• Market Basket and Item Combined
Successive programs with one
option being a primary marketing
method and one being used as a
special “excitement” builder.
Promoting Your Program
Market Basket Rewards
Examples you could use to increase your in-store sales include:
• 5 cents off per gallon with a total purchase of $25.00
• 10 cents off per gallon with a total purchase of $50.00
• 1 cents off per gallon for every $5.00 in total purchases
Individual Item Rewards
• Item rewards allow you, the retailer, to offer greater overall savings per gallon to customers who purchase the items with reward amounts attached, likely on higher margin items.
• Item rewards allow you to control profits by only offering rewards on items that you choose.
Comparing Marketing Options
Adapting Your Program
• Market Basket
Not easy to adjust the program. Customers
can easily see if you change the amount of
the market basket reward to reduce or
expand the fuel reward expense.
• Individual Item Reward
You can easily control gross profit on each
item. You can “dial in” or “dial out” the
number of fuel reward items and/or reward
amounts on each item to adjust the
program’s aggressiveness.
• Market Basket and Item Combined
Market basket rewards are ongoing, but
the item rewards can be manipulated
based on your gross profit budgets and
aggressiveness towards sales.
Promoting Your Program
Comparing Marketing Options
Vendor Support
• Market Basket
No support from vendors used in this
method. Funding of the rewards relies
solely on you, the retailer, and your
increased sales.
• Individual Item Reward
Some of the vendor provided support and
money can be channeled towards
incentivizing certain item rewards.
• Market Basket and Item Combined
This marketing option will utilize the most
aggressive vendor monies to select the
incentive items that will bring the additional
excitement to your market basket method.
Promoting Your Program
Merchandising
and Promotions To promote your Supermarket, you can: • Advertise your fuel reward program in your weekly
ads as well as on all forms of media
• Offer discounts off per gallon for gas transactions paid with cash
• Use alternate programs as a special promotion to drive sales.
• Offer a limited time market basket promotion if your primary program is item rewards, or vice versa.
• Offer a “Super” Fuel reward item – 50 cents off per gallon when you buy 3 of…
Promote Your Fresh Meat
With Fuel Rewards
• Family Pack meat is easily, and more importantly, profitably promoted with a fuel rewards marketing program.
• Large cents off offerings can be found with the larger ticket items.
• Price your family packs at near full retail, and then give a large fuel reward to incentivize a purchase.
• Private Label and Specialty Items often offer higher gross profits to work with when choosing an item for your cents off per gallon reward.
• Not necessarily fast sellers, fuel rewards can grow your Private Label and Specialty sales.
• By adding fuel rewards on these items, your shelves will have more tagged items and your program will impress shoppers with the number of tags and discounts they see while shopping.
Promoting Private Labels
and Specialty Items
Promoting Your Program
Benefits of the DOTS
Program for Supermarkets
DOTS Provides a Complete
Turnkey Fuel Center Program
• Site Review and Economic Forecasting
• Designing, Building Fuel Center
• Fuel Supply
• Fuel Management
• Fuel Center Support
• Fuel Marketing
Site Review and
Economic Analysis
DOTS ensures the following preliminary
requirements are met before building:
• Viability of your fueling location
• Analysis of competition in the area
• Traffic flow
• EPA review
• ROI economic
analysis
DOTS provides ease of mind during the
building process, by offering you a complete
Turn-Key fuel center, including:
• Complete Engineering and Design
• Pre-Engineered Site Layouts
• Preferred Equipment Pricing
• Comprehensive Fuel Site Project
Management
− Permitting and Environmental Filing
− Construction Bidding & Negotiations
− Construction Management
Designing and Building
Your Fuel Center
Fuel Center Construction
DOTS takes all of the hassle out of fueling your
retail fuel center, by offering the following:
• Contracted Fuel Supply
− Assured Supply of Gasoline and Diesel
− Spot Market Pricing
• Consigned Fuel, with NO Inventory Costs
• Low-cost freight rates
Fuel Supply
Fuel Management
The DOTS Program offers complete peace of
mind while managing all of your fuel
inventories. DOTS provides the following:
• Automated Reporting, including:
– Inventory Management
– Fuel Reconciliation
– Environmental Compliance
– Sales Reports
• Consolidated Fuel Invoicing
• Automated Sales Reports
DOTS Log-In
• Access www.duncansolution.com
• Enter your specific ID and Password
Access Your Fuel Site
• Once logged in, check your status
• Quickly see any alarms and potential
problems at your location
Check Inventory Levels
• Quick visual gauge of inventory
• Complete, calibrated figures
• Hourly updates
Multiple Reports
Available
• Generate detailed reports
• Set specified timeframes
Regulatory Reports
• Ensure complete compliance
• View all of your tanks at once
Sales Reports
• View volume and monetary figures
• Customizable timeframes
Fuel Center Support
Ease of operation is one thing the DOTS program provides through support such as:
• Fuel Center Launch Support
– On-Site Support and Training
• Retail Employee Training
– Dedicated Retail Training Staff
– State and Federal Fuel Regulations and Procedures
– Certified Cross-Merchandising Installation and Training
• Fuel Industry Consultation
• Maintenance Coordination
Fuel Marketing
The DOTS program provides support from our experienced marketers, as well as proven marketing plans, such as:
• Industry-Leading Rewards Programs
– Our years of experience will allow us to help tailor a plan specific to your fuel center
• Additional Branded Fuel Programs
– Our retail brands may also help provide the necessary marketing desired
• Complete Imaging Programs
– From design to production, we can offer a complete imaging package for your fuel center
Retail Brands Offered
Sunoco • Brand recognition
• Official fuel of NASCAR
Valero • Largest US
refinery
• Product availability
Marathon • Nationwide brand
recognition
• Product availability
Retail Brands Offered
Clark • “Brand” name with unbranded fuel
• No restrictions on brand of fuel used
VP • Unbranded gas, with a “brand” name
• Niche market recognition, loyal customers
• Catchy, new image with a growing brand
Notes _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Duncan Oil Contact Info
Gas and Grocery............................ Retail Solutions…………………….. Wholesale Fuels……………………. Residential Heating………………… Transport Solutions……………….. Fuel Center Construction……….… Maintenance………………………… Environmental……………………… Performance Fuels………………… Bio Diesel…………………………… Pricing and Procurement………… Credit………………………………… Accounts Payable…………………. Accounts Receivable……………... Dispatch……………………………... 24/7 Emergency Service…………..
937-305-7001 937-606-4909 800-999-6620 800-999-6620 800-527-2559, ext. 37 937-305-7001 937-303-6645 800-527-2559, ext. 24 937-502-5611 800-527-2559 800-527-2559, ext. 30 800-527-2559, ext. 28 800-527-2559, ext. 12 800-527-2559, ext. 41 877-315-3687 937-608-0425
Ken Kilgore
Fuel Center Specialist 937-305-7001
Ryan McDaniel
Director of Sales and Marketing 937-606-4909
www.duncan-oil.com
www.duncan-oil.com
Duncan Oil- Beavercreek
849 Factory Road
Beavercreek, OH 45434
Toll Free: 1.800.527.2559
Fax: 937.427.2365
Duncan Oil- Springfield
2850 E. Leffel Lane
Springfield, OH 45505
Toll Free: 1.800.999.6620
Fax: 937.323.6492
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