Through a special arrangement, what follows is an excerpt of a current article from Convenience Store Decisions magazine presented here for discussion.
Studies indicate that the majority of purchase decisions are made at the point of sale, where packaging is the primary spokesperson for the product. Using this knowledge to full advantage in your c-store's foodservice segment calls for developing packaging that is memorable, presents the product well and makes customers want to buy it right now.
Branded packaging also provides a means for customers to distinguish one store's products from another's and of creating and maintaining an image that encourages confidence in consistent product quality. Conventional marketing wisdom holds that, once established, a branded packaging design that stands out and is well received by customers should remain the same for years. However, Mike Thornbrugh, manager of public and government affairs for Tulsa, Okla.-based QuikTrip, said this doesn't necessarily apply to the convenience store world.
QuikTrip, which operates 476 stores in nine states, frequently changes packaging designs for the extensive variety of branded food and drink items it sells.
"Customers like to see something new and fresh," Mr. Thornbrugh said. "The company name is always the focal point, but the designs and colors around it frequently change for all of our branded packaging, including shakes, fountain and coffee bar drinks, sandwiches and other foods."
Even though some QuikTrip customers consider the designs collectible, especially those created for events such as Oklahoma's centennial and the annual Wichita River Festival, Mr. Thornbrugh doesn't think that branded packaging necessarily boosts sales. "To our customers, the most important things about our drink containers are that the cup lids fit properly and that the cups fit their cup holders," he said.
Studies show that branded cups in particular promote future beverage sales, and using a proprietary label makes promoting frequent buyer programs easier and results in more bounce back business.
Loves Travel Stops & Country Stores uses its Java Amore coffee brand to promote its gasoline loyalty rewards for truck drivers. When a Love's truck customer buys 50 gallons or more of diesel fuel they get a free coffee or fountain drink in a special cup issued when they joined the refill program.
Love's, a 180-store chain based in Oklahoma City, now offers several products manufactured under their own private label, including engine oil, jerky, Styrofoam coolers and ice. Expanding from simple branded food and drink packaging into private label products allows Love's to offer its customers high-quality items at real value-offer prices.
At base, Mr. Thornbrugh observed, promoting your brand is really about walking your talk by making your company's mission statement a reality. "That's why we guarantee every cup of coffee and fountain drink we sell," he said. "If customers don't like it, we'll give them their money back or let them try something else. The cup is just an extension of that."
Discussion Questions: Do you think branding is any more or less important for convenience stores than other retailers? What role do you see packaging playing in retailer branding efforts? How do you know when a brand's packaging design needs to be updated?