Transcript DeCA Round Table

MacDill AFB POD Meeting
March 10-14, 2008
Produce Agenda
 National
and Regional Advertising
 Merchandising
 Organics
 Outreach
 COOL
 Training
National Produce Ads
 Advertising
in Commissary Base
Newspapers and Specials Flyer
 2-3 produce items on front page
 National pricing
 Dates range from 3 days to 3 weeks
 Monthly frequency
 All stores participate
Commissary Specials
Circulation Summary - 2008
COMMISSARIES REACHED
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Belvoir
Lewis
Oceana
McChord
Meade
San Diego1
Miramar
Bragg (North/South)
Campbell
Quantico
Travis
Little Creek
Nellis
Langley
MacDill
Jacksonville
Myer
Andrews
Pendleton
Benning
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Scott
Sam Houston
Bliss
Lackland
McGuire
Eglin
Luke
Davis-Monthan
Pensacola
Norfolk ²
Hood (I&II)
Kirtland
Eustis
Jackson
Offutt
Knox
Lee
Stewart
Hunter
Base Paper Circulation:
578,400
2,000 circulars placed
in each store:
82,000
Broadcast email to
98,000
MilitaryShoppers.com
registrants:
Total Distribution:
758,400
50% of DeCA Conus Sales
1) Also reaches North Island, Imperial Beach 2) Also reaches Portsmouth and Dahlgren
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Advantages of a National Ad
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Potential of reaching 750,000 patrons
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Creates an engaging, eye catching display when
you walk in the store
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Expands sensory experience while shopping
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Reinforces the importance of fresh and
emphasizes the changes that DeCA is making in
the store.
National Ad Internal Motivators
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Complete support for the ad from headquarters to
store level
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Ability to secure valuable real estate in the store
to “Go Big”
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Drives competition among commissaries to build
bigger displays
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Every store is on the same retail price, easier to
monitor and analyze performance
Disadvantages of a National Ad
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May not be the “BEST” retail price in every region
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Loss of regional preferences when all stores must
conform to the same unit of measure (lbs Vs each)
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Length of ad (3 weeks) is not industry standard for
produce, can’t be as “sharp” as regional promotions
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Length of ad affects the weekly promo’s and impacts our
choice of items to promote for the national ad
Advantages of Regional Ads
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Ability to write very aggressive retail price points
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Highlight and support local growers
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Shortened lead time
Not trying to coordinate five other produce contractors
Fresher to market
Local connection
Ability to react quickly to market conditions
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Take advantage of grower abundance
Challenges for Regional Ads
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Participation and execution of ads at store level
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Ad items are not mandatory
Additional space may not be allocated to the ad items
Produce Managers may not post ad items or discuss
the merchandising of the items with the produce team
Timely changing of retails and point of sale
Super Bowl Avocado Ad
Fort Belvoir
Seymour Johnson
Merchandisers and the Role
They Play
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Assist the produce department to meet goals.
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Training
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How receptive is the produce team to change?
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Following guidelines of merchandiser.
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Consistency day to day, store to store.
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Increased communication with DeCA supervision.
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Merchandisers will follow up with Store Management at end of
each visit.
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Coordinate up coming events (Farmers market, promotional
items, demos, etc.)
Best Practices
What keeps the patrons coming back?
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Provide the best produce available at the best price.
National Ads
Farmers Markets, Sidewalk Sales, and Case Lot Promotions add
excitement to the produce department and generate increased
sales.
Sampling of product / demos
Store participation in weekly ads through eye appealing well
merchandised displays.
Departmental customer service: produce personnel should have
knowledge of product, seasonal changes, and market trends.
Cleanliness of the produce department.
Proper ordering-ensuring the racks are always filled.
Proper rotation of product.
Designated Display Area
 “Designated
Store Entrance Mass
Displays” allow the produce department to
make a clear positive statement when
patrons walk in the door.
 Opportunity to attract patrons to the
produce department by eye appealing well
merchandised displays with bold ad
pricing exhibited.
 Results: High volume sales less shrink.
Organics
Here is Where DeCA Stands:
4-8 foot sets – segregated.
 Primarily packaged programs. Exceptions
are the mountain and Ohio Valley areas.
 Reluctance by stores to handle due to
higher prices
 Sales flat + 2%
 Participation in promotions is light, with
many stores not participating.
 Generally
What is the Commercial World
Doing with Organics?
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National supermarkets are making commitments
of up to 75 items
Regional supermarkets are making
commitments to over 100 items
Price is not an issue
Offer segregated and integrated sets
Organic fresh fruit and vegetable sales up 11%
nationwide
Commercial promotional participation is
mandatory
Trends
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Organic foods are the fastest growing segment in the food industry
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Consumers are increasingly conscious of eating healthy and consuming more fresh
fruit and vegetables including organics then they did 10 years ago
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Higher income families and families with at least two children are likely the biggest
organic purchasers
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Science is now finding that organic fresh fruit and vegetables can be nutritionally
superior to conventionally grown fruit and vegetables. Other studies are showing that
organically grown produce contains more flavonoids than conventionally grown
produce
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Organically grown fruit and vegetables used to be sold only at natural food stores and
farmers markets. Now, major commercial stores have chosen to offer expanded
organic produce choices reflecting public demand and making it commonplace
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Fresh herb and bunched vegetable programs being offered are organic instead of
conventional
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Larger PLU stickers and “bowtie” wraparound PLUs are being used in bulk programs
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Consumers are prepared to pay more for organic products
Recommendations for DeCA
Moving Forward
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Commitment to organics. Dedicated sets based
on store volume and clientele.
Increase participation by stores in the organic
programs and promotions. More discipline
Offer organics in national ads.
Expand sets to offer more variety including bulk
organic fruit and vegetables.
Sample organics in stores
Consider slightly higher shrink rate for organics
Consider the top sellers as core items
Merchandise in high traffic areas
Outreach Projects
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Pre-natal Classes
On
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Fun Runs
Changes
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Fitness Centers
Walk
Base Newspaper Ads
to WIC
to Wellness
How can we help generate a greater
level of participation, on base, to support
the Commissary Benefit.
COOL
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History of COOL
Coming… Sept 2008 COOL will be mandatory,
however without knowing the rules,
implementation is an unknown.
 More reasonable than the original proposal
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State designation will suffice
Penalties to retailers have changed
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Significantly reduced penalties
Reduces liability to the retailer
Onus more on supplier
No new record keeping requirements
Five Basics to Increase Sales
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Quality
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Stock Level
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Cleanliness
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Customer Service
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Signage
Quality
 Backroom
Procedures
 Defined Area for Perishables
 Visual Inspection
 Culling
 Price vs. Allocation
 Product Handling
 Rotation
Stock Level
 Order
Guides
 Product Location/Family Groupings
 Space Allocation
 Rotation Practices
 Working efficiently
 Display Technique
 Organics / Commingling
Cleanliness
 Cleanliness
 Work
Starts with You
Neat
 Avoid Cross Contamination
 List of Approved Cleaning Agents
 Cleaning Schedules
 Cardboard Baling
Customer Service
 Greetings
 Attentive
 Samples
 Personal
Pride
 Exceed Expectations
Signage
– Descriptive, Accurate
 Conform to DeCA standards
 Report missing signs to management
 Promote Multiples
 Signs
Thank You
Thank you for allowing us to freely discuss the
opportunities and challenges the produce
industry, DeCA and the produce contractors
meet each day.
We look forward to strengthening our partnership
with the commissaries, increasing sales, driving
customer satisfaction to new heights and
delivering the maximum benefit to the military
patron.