speaker: john patton ci l kcircle k patton, circle k.pdfcompany highlights 9,413 stores including...
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Speaker: John PattonCi l KCircle K
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International DirectorCircle K Worldwide FranchiseCircle K Worldwide Franchise
A Division of Alimentation CoucheA Division of Alimentation Couche--TardTard
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It’s All About It s All About Satisfying Satisfying
Customer NeedsCustomer Needs
Thursday, May 07, 2009
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Today’s DiscussionToday s DiscussionAn Introduction - Who We Are
Alimentation CoucheAlimentation Couche--Tard Tard
An Introduction Who We Are
Circle KCircle K
Keys to Successful RetailingI t StI t StImpact StoresImpact Stores
Category ManagementCategory Managementg y gg y g
IT Data Capture SolutionsIT Data Capture Solutions
Effective Distribution SystemEffective Distribution System
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Alimentation Couche-TardAlimentation Couche Tard
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Company Highlights9,413 stores including 3,617 which sell motor fuel
Company Highlights9,413 stores including 3,617 which sell motor fuel
Well recognized banners including Couche-Tard, Circle K and Mac’s
2,550 stores in Canada and 3,203 in the United States and 3,660 Franchised stores outside of North A i i Chi H K M J America, in China, Hong Kong, Macau, Japan, Indonesia, Guam and Mexico
Over 46 000 employees working in the networkOver 46,000 employees working in the network
15 Billion US dollars in sales turnover
EBIDA 485 MMEBIDA 485 MM
Net Profit of 189 MM
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North American Footprintv
v
CENTRAL CANADACorporate stores: 586Affiliated stores: 207
WESTERN CANADACorporate stores: 290Affiliated stores: 0
WEST COAST REGIONCorporate stores: 175
EASTERN CANADACorporate stores: 624Affiliated stores: 336
GREAT LAKES REGIONCorporate stores: 426Affiliated stores: 40
MIDWEST REGIONCorporate stores: 430
Affiliated stores: 303
pAffiliated stores: 36
SOUTHEAST REGIONCorporate stores: 263Affiliated stores: 7ARIZONA REGION
SOUTHWEST REGIONCorporate stores: 228Affiliated stores: 105
Corporate stores: 577Affiliated stores: 21
FLORIDA REGION Corporate stores: 413Affiliated stores: 0
GULF REGIONCorporate stores: 280Affiliated stores: 1
WEST COASTCaliforniaHawaiiOregonWashington
ARIZONAArizonaNevadaUtah
FLORIDAFlorida
SOUTHEASTAlabamaGeorgiaNorth Carolina South Caroline
MIDWESTIllinoisIndianaIowaKentucky
GREAT LAKESIndianaKentuckyMaineMassachusetts
GULFAlabamaArkansasLouisianaMississippi
SOUTHWESTColoradoKansasMissouriNew Mexico
10
Washington South Caroline Tennessee
KentuckyMichiganMissouriOhio
MassachusettsMichiganNew HampshireOhioPennsylvaniaVermont
MississippiFlorida PanhandleTennessee
New MexicoOklahomaTexas
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Industry Recognition
11
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Circle KA brief history
1951
Founded in 1951 with the purchase of three Kay’s convenience Kay s convenience stores in El Paso, Texas.
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International Presence
3,712 Sites
MexicoChina
Japan
3,712 Sites
108Mexico p
136108 2,907
Macau / ZhuhaiVietnam
5Macau / Zhuhai 522
12Hong Kong Guam
290232
12
Indonesia
16
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Franchise Recognized in Recognized in 2008 & 2009 2008 & 2009 Franchise
Recognition2008 & 2009 2008 & 2009 by the highly by the highly
regarded regarded E t E t Entrepreneur Entrepreneur
and and Franchise Franchise
TimesTimespublications publications
as a as a Leading Leading GlobalGlobal
F hi F hi Franchise Franchise Program Program
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Franchise TimesFranchise Times Franchise TimesFranchise Times, , October 2008October 2008
Entrepreneur Magazine, Magazine, January 2009
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Global Lifestyles are changing…
More shopping optionsMore shopping optionsShoppers are loyal to
brands only if they brands only if they simplify their life & budgetbudget
Demand real valueDemand higher quality Demand higher quality
and service
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Satisfying Customer NeedsSatisfying Customer NeedsFour Critical Elements
Impact StoreConcept
Impact StoreConcept
CategoryManagement
CategoryManagementConceptConcept ManagementManagement
Efficient Distribution
Efficient Distribution
State-of-the-Art
IT System
State-of-the-Art
IT System DistributionDistributionIT SystemIT System
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Project Impactj p
Impact StoreConcept
Impact StoreConceptpp
reateaaaa
customer experiencecustomer experience
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Project ImpactProject Impact
1. A destination • A meeting place
Our main merchandising
d k ti t tand marketing strategy
DDiiffffeerreennttiiaattiioonnDDiiffffeerreennttiiaattiioonnto increase sales & margins
to reduce reliance on tobacco products and gasoline
The end of the “cookieThe end of the “cookie--cutter” storecutter” store
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Project Impact Project Impact
Traditionalconvenience
stored t
FoodserviceOil products
MultiMulti--service offeringservice offeringproducts
p
FinancialOther products
IMPACTIMPACTConcepts Concepts
productsp
and services
Customerservice
Co-brandingservice
Proprietarybrands
g
Price Optimization strategies
Micro-marketmerchandising
product mix
Creativepromotionalcampaigns
Store designStore design
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United StatesUnited States
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GuamGuam
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ChinaChina
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Hong KongHong Kong
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VietnamVietnam
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Macau/ZhuhaiMacau/Zhuhai
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Proprietary Proprietary Products
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Co-Branding Co Branding with fuel
companies
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Co-Branding Co Branding with quick serve
restaurants
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Fun PromotionsFun Promotions
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Category g yManagement
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Our approach toOur approach tomeeting
shoppers’needsneeds
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Retailer / Supplier/ ppCollaboration
Mr. Supplier Mr. Retailer
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Category Managementg y gat Circle K
Right ProductsThe
ability to
g
Ri ht P iability to
offer:Right Price
Right Placement
Right Promotions
Consistent, Repeatable Process
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Key Benefits of Category y f f g yManagement
Improved SalesMeasurableBenefits
Improved Gross profit
Improved Inventory Turns
Improved Total Shopper
p y
p ppExperience
Innovation
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Category Management Processg y gStep 2 Step 1 Step 3 Step 5Step 4 Step 6p
CategoryRolesSelect
Category & Supplier
pAnalyze
PerformanceInnovation
Process
pCommunicate& Implement
p
The Plan
p 6
Review&
Evaluate
Advisor Category Definition
Plan
InputsInputs InputsInputs InputsInputspShopper InsightCircle K Prioritization
pSupplierQuestionnaireConsumer/
shopperResearch
pBecomesa Part of Everyone'sJob
pEnhancedTemplatesShopper/ Consumer
Research
pTraining &Communication
Strategy forAllParties
p
CategoryMissionStatementRequiredResearch
Innovation Research
Research PartiesRequired
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Developp
Retail Positioning StrategyRetail Positioning Strategy
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Retail PositioninggRetail Positioning defines Circle K by answering the following questions:answering the following questions:
Who are our current and potential customers?
Where do we compete and against whom?
What do our shoppers need?
What is our value proposition?
How do we position and communicate Circle K?
What are the operations and merchandising guidelines?
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Why We Need yRetail Positioning
Creates a shared vision of how things get doneCreates a shared vision of how things get done
Provides guidelines for consistent decision makingProvides guidelines for consistent decision making
Ensures Circle K is presented in the same way across all Channels of Trade across all Channels of Trade
i d f iliRequired to facilitate category management, strategic and tactical planning, store design, etc.
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Key Key Principlesp
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Key Principlesy pMeeting shopper needs is key to effective
Category ManagementCategory Management
SHOPPER FOCUS
BUSINESS STORE CATEGORY PERFORMANCE
Who is the shopper?
SalesMarginT ti i
MEASUREMENT
What do they buy?
Why do they buy?
How do they buy?"THE
SHOPPER"
Transaction sizeShare of categoryLoyaltyVisit frequency
When do they buy?
Where do they buy?
$ How much do they buy?
Visit frequency
CUSTOMERSATISFACTION$ How much do they buy? SATISFACTION
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State-of-the-ArtIT SystemIT System
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SYSTEMSMISSION SYSTEMSMISSION
VISION
STRATEGYSTRATEGY
PRINCIPLES
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Circle K Adds Value through
T t ll I t t d S tTotally Integrated Systems
fPoint-of-SaleSystems
Back OfficeManagement
Systems
HeadquartersManagement
Systems
DecisionSupportSystemsy
“Consumer to CEO” fully integrated Convenience y gStore/Petroleum solution.
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Totally Integrated SystemsTotally Integrated Systems
Headquarters
Middle Management
CashiersPOS scanning sales center
easy use, training, customer servicey , g,
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EfficientDi t ib tiDistribution
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The Supplier RelationshipThe Supplier Relationship
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Competing against a M k L dMarket Leader
Competitiveness of the Whole Supply p pp yChain is as Important
Suppliers as Partners & Enablers
Investing in Right Technology –for Efficiency and Knowledge
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Pull Chain vs. Push Chain
Accounting and Finance Reporting
Supplierp g
< EPOS
Distribution Center
< EPOSCenter
< EPOS
Corporate HeadquartersInformation HubSupplier
< EPOSInformation Hub
Decision Support System
ManagementOperations
Purchasing
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North AmericanNorth American
Distribution Center
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Indonesian DistributionIndonesian Distribution
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Indonesian DistributionIndonesian Distribution
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Impact Store Store Concept
A store designed to say, “Welcome!”say, Welcome!
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Product management that meets consumer needs
Category Category ManagementManagementManagementManagement
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Integration Integration of store systems
StateState--ofof--thethe--Art IT Art IT SystemSystem
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Efficient Efficient DistributionDistributionDistributionDistribution
Pull Chain vs. Push Chain
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Category Management
Impact Store Concept
State-of-the-Art IT S t
Efficient DistributionSystem Distribution
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