By CSD Staff
Through a special arrangement, presented here for discussion is an excerpt of a current article from Convenience Store Decisions magazine.
Baristas, costly specialty brews and professional ad campaigns are all well and good for large chains that have the financial wherewithal to make aggressive market moves at the growing coffee market. But how can small c-store retailers, many of whom only have only one store, boost coffee sales?
According to Dawn Molski, Sara Lee Corp.'s senior customer marketing manager for convenience stores, big chains don't have a monopoly on coffee program success by any means. The over arching theme should be thinking "beyond the cup," Ms. Molski said.
She advised smaller chains to take the following steps to ensure that their coffee offerings succeed:
1) Create a serious "coffee destination" look. Boosting coffee sales requires changing customer mindset from, "this is a gas station with coffee" to "this is a coffee shop with gas" by giving the coffee service area a coffee destination appearance - even with self-serve coffee programs. Just create a consistent look across all beverages regardless of whether they are house or manufacturer brands. Ms. Molski said, "Basically, you want every beverage station to have a uniformly serious, neat appearance and be scrupulously clean."
2) Employ every cheap advertising measure you can. Signage is important, of course, but convenience retailers can also have employees wear buttons or shirts that promote your beverages.
"Encourage your employees to get to know the people who walk through the door," Ms. Molski added. "It's the whole 'Hey, Norm, how's it going?' type of thing. When you know that Norm loves his morning coffee, letting him know you just made a fresh pot makes him feel special."
3)
Push technology to the max. Innovative equipment exists that can provide high-quality coffee beverages 24/7. Suppliers can often provide more upscale products for existing equipment. Give consumers more diverse options by adding teas and meal replacement beverages to your coffee lineup.
4) Use food to boost overall sales. Complement morning coffee service with items such as breakfast sandwiches and pastries, switch to sandwiches and sweet snacks available at lunchtime through mid-afternoon. Ms. Molski pointed out. "Food aromas send the message that customers don't need to go anywhere else because everything they want is right there."
5) Let customers know coffee now stands out as a healthful beverage choice. Numerous studies have shown that chemicals in coffee may inhibit the cellular damage done by free radicals and protect against cirrhosis of the liver, diabetes, Parkinson's disease, gallstones and mood problems. Moreover, researchers have found lower incidence of Type II diabetes among regular coffee drinkers.
6) Give them a taste. There is no better way to show off how much confidence you have in your coffee program. Plus, it gives customers a chance to sample the quality for themselves.
Discussion Questions: How can smaller c-stores best compete in the coffee category against larger c-stores and coffee/fast food chains? On a personal level, what drives your purchasing decision to buy coffee at a local c-store versus a larger chain?