Post on 24-Dec-2015
transcript
DEFENSE COMMISSARY AGENCY
DeCA
Your Commissary … It’s Worth the Trip!
Sales Growth & OpportunitiesALA Commissary Roundtable, April 30, 2015
Mr. Rogers CampbellExecutive Director for Sales,
Marketing & Policy
2
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Agenda
Sales Performance
Sales Growth & Opportunities
Swell
Sales Objectives
3
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• Video 1
4
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Agenda
Sales Performance
Sales Growth & Opportunities
Swell
Sales Objectives
5
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Trends - Sales Performance
FY 2013 FY 2014 FY 2015$2,500,000,000.00
$2,600,000,000.00
$2,700,000,000.00
$2,800,000,000.00
$2,900,000,000.00
$3,000,000,000.00
$3,100,000,000.00
$3,200,000,000.00
$3,300,000,000.00
+0.74%
Same Store Sales TrendsOctober 1 – March 31
6
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Trends - Sales Performance
Source: Nielsen RDH Latest 26 Weeks Ending March 28, 2015
Market Dollar % Change vs YAGO
DeCA +0.2%
Remaining Market +1.9%
xAOC +2.1%
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Population Trends – Sales Performance
Source: Total Population Count by Category: DEERS Point In Time Extract – as of July 2014, DRS#9331Census.Gov (Note this is only U.S. Residents and does not include Military Serving Overseas, the reason this data set is used is to get an idea of growth in population for Nielsen RM and AOC store set which is CONUS only.
2011 2012 2013 20141.30
1.35
1.40
1.45
1.50 1.49
1.461.44
1.40
Active Duty Sponsor (in Millions)
-2.51%
2011 2012 2013 2014310
311
312
313
314
315
316
317
318
319
320
311.58
313.87
316.13
318.35
U.S. Residents (in Millions)
+0.70%
Military channel is experiencing steep declines
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Basket Size - Sales Performance
20 or Less
21 to 50
51+
44%
18%
12%
18%
5%
2%
2015 FYTD Transactions by Basket Size
CONUSOCONUS
Bask
et S
ize
(Net
Qty
)
20 or Less
21 to 50
51+
0% 10% 20% 30% 40% 50% 60% 70%
15%
24%
40%
6%
7%
7%
2015 FYTD Sales by Basket Size
Bask
et S
ize
(Net
Qty
)
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Basket Size Trends- Sales Performance
5 or Less 6-10 11-20 21-50 51-75 76-100 Greater than 1000
2,000,0004,000,0006,000,0008,000,000
10,000,00012,000,00014,000,000 Transaction Contribution 2014
2015
Tran
sacti
ons
(Mill
ions
)
+2.8%
+3.0%+2.5%
+1.2%
-2.8%-6.0% -10.7%
5 or Less 6-10 11-20 21-50 51-75 76-100 Greater than 100 $-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
Basket Size (Net Qty)
Net
Sal
es(M
illio
ns)
+5.2% +5.9%+5.6%
+4.1%
+0.2%-
3.2%-8.7%
Sales Contribution
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
UPC-Coded Patron Savings
20.0% 22.0% 24.0% 26.0%
23.3%
22.8%
Patron Savings vs xAOC
Q2 2014
Q3 2014
Q4 2014
Q1 2015
10
20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0%
25.1%
24.5%
Patron Savings vs Remaining Market
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Source: Nielsen RDH CONUS ex AK HI – Only UPC Coded Products, excludes random weight meat and produce
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Source: Nielsen Homescan Store Choice Drivers 2014
0.1 0.12 0.14 0.16 0.18 0.2 0.22 0.24 0.26 0.28 0.3
0
50
100
150
200
Chart Title
Strong
Strong
Sto
re
Ass
oci
atio
ns
Weak Derived ImportanceAmong Channel Shoppers
Chan
nel I
ndex
= 1
00Commissaries Choice Drivers - Sales Performance
Everyday Low Price
NearbyLocation
Store Brand
Friendly Employees
Fresh Produce
Trustworthy Company
Well Stocked
Specialty
ProductsHBC
Locally Sourced Products
Fresh Meat
12
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Agenda
Sales Performance
Sales Growth & Opportunities
Swell
Sales Objectives
13
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Growth & Opportunities
Driving Sales
Staying connected and
sharing best practices
Engaging with the
empowered shopper
Winning the trip
Driving the Health & Wellness
growth wave
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Growth & Opportunities
Staying Connected• Keeping Current
– Delivering a 21st Century Commissary Benefit
• Voice of our Patrons– POS Demographics– Branding– Strategic Decisions
• Sharing Best Practices– What worked and didn’t work– Uniformity of practices
14
15
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Demographics - Voice of Our Patron
• Eligibility Validation• Commissary Usage• Non Usage
Patrons
• Rank, Age• Household Size• Branch, Status • Zip Code
Demographics• Category
Management• Marketing• Customization Ability• Local Promotions
Benefits
POS Demographics
16
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Shopper Breakout – Voice of Our Patron
Under 22 22-24 25-30 31-34 35-44 45-54 55-60 61-64 65-69 70-74 75+0%
5%
10%
15%
20%
Age Distribution
Net Sales Trans Count
17
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Commissary Shoppers – Voice of Our Patron
18
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Eligible Shoppers – Voice of Our Patron
19
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Industry Advertising
20
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Step 1Discovery
Step 2Research &
Insights
Step 3Brand Strategy
Brand Strategy Objective: Develop, define and deliver an updated
Brand Strategy for the Commissary
21
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Research Objective: Build a foundational
understanding from a patron perspective.
Step 1Discovery
Step 2Research & Insights
Step 3Brand Strategy
22
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Step 1Discovery
Step 2Research & Insights
Step 3Brand Strategy
Data Collection:Information was used to inform the design and tactics of the additional branding plans
23
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Methodology:11,745 Online Surveys
144 In-Depth Interviews
623 Intercept Surveys
85 Shop Alongs
18 Focus Groups
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Insights Gained:• 81% feel the commissary supports
them unlike other grocery stores • 82% say that shopping at the
commissary is a privilege• The commissary can’t win on price
Key Findings:• The commissary has an advantage
like no other grocery store • The commissary is more than a
grocery store; pivotal QoL role• The privilege is ours alone
Step 1Discovery
Step 2Research & Insights
Step 3Brand Strategy
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25
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
Step 1Discovery
Step 2Research & Insights
Step 3Brand Strategy
• We’re Proud
• We’re Committed
• We’re More
26
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
• We’re Proud
• We’re Committed
• We’re More
27
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA Brand Strategy
What You Can Do• The smallest details
make the biggest difference
• If it’s not on the shelf, it can’t be sold
• Be a reflection of our patrons
Next Steps• Store Signage
• Communication
• Meet, Greet
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Growth & Opportunities
Engaging the Empowered Shopper• eCommerce
– CLICK2GO– Future with EBS
• Content Marketing – Digital Communications– Facebook– Sales flyer
28
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Shift in Shopper’s Preferences - eCommerce
29
Source: Ibis World and VentureBeat
eCommerce is evolving and is increasingly embracing the mobile presence
Mobile shopping apps usage has grown faster than any other category of mobile apps
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Where is DeCA? - eCommerce
30
CLICK2GO Piloted in 3 locations
Fort Lee, Offutt AFB, Travis AFB
Average Basket Size• CLICK2GO: $104.70• Brick and Mortar : $62.60
Source: Front End Sales/Transactions thru April 19
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
DeCA’s Future - eCommerce
31
EBS capabilities will assist with DeCA’s transition into the digital space.
32
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Commissaries.com - Content Marketing
• Key Communication Tool
• Links to all our Social
Media Sites
33
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Flyer – Content Marketing
Sales flyers posted for each Promotion on webpage &
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Growth & Opportunities
Winning the Trip• Value Brands• Promotions & Programs
–Club Packs–Basket Building
• Rewards Card• Customer Service• Store Audits
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Value Brand
• Quality brand names – store brand prices
• Response to continue demand for private label/store brand products
• Approximately 450 items; spanning more than 55 categories
• Save: 20-25% versus retail private label/store brands
• Save: 40% against similar national brand items
• Value Brands featured in each promotional flyers
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Locating Opportunity- Value Brand
DeCA Shoppers Purchase Private Label% HHs Purchasing….
DAIRY FROZEN HBC
WALMART TOTAL TOTAL GROCERY
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Private Label vs Value Brand Shopper
• Older Shoppers• Smaller Household Size• Retirees
Source: Spectra, POS Demographics
• Middle Age Shoppers• Larger Households• Families with Children
vs
38
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Basket Building - Promotions & Programs
• Solution Mandated
End Caps
• Encourage multiple
purchases
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Rewards Card
Over 382,000
current users
Coupon Redemptions
grew 65% for FY14
New Age Technology
Users spend more money!
Average Basket $157
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Growth & Opportunities
Health & Wellness Growth• Healthy Lifestyle Festivals• Natural, Organic and Gluten-Free
• Nutrition Guide Program – Educate Patrons on
Nutritional Attributes– Late Summer 2015
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Healthy Base Initiative
42
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Agenda
Sales Performance
Sales Growth & Opportunities
Swell
Sales Objectives
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Swell Allowance Program
43
Swell Allowance Program
Mandatory Participation
• Except direct store delivered items, fresh meat, and produce.
Rate Negotiations
• Began February 2, 2015, to be completed by June 5th, 2015 (previously April 30th)
Swell Rates
• Negotiated Rates take effect October 2015
• Adjustments made after six months
44
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Agenda
Sales Performance
Sales Growth & Opportunities
Swell
Sales Objectives
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Objectives
• Gas prices stable but , Patron willing to travel• “Maintain” household counts and trips• Opportunity to improve in store experience• Fresh (produce, wellness) which will result in increased purchases
• DeCA demonstrated success in increasing basket size over past year
Increase of 0.7 Trips($65/trip)
Increase of $3/Trip
(14.5 trips/year)
OR+5% Sales
Increase
Source: Nielsen Homescan 52 Weeks Ending 12/27/14, Total Product Line
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
59
11
9
9
13
HEAVY
Convert Shoppers – Sales Objectives
22
13
26
19
21
MEDIUM
GROCERY MILITARY CLUB SUPERCENTER
Medium Households already have vested interest in Military base
ALL OTHER
Source: Nielsen Homescan 52 Weeks Ending 12/27/14, Total Product Line
Converting one shopper increases their annual spend with us $1456
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Sales Objectives
• Although Economy is better, consumers are conservative with spending
• Sales lagging due to decline in shopping trips
Market Overall
• Share of Wallet Growth
• Basket Size Growth
• Store Importance
DeCA
• Improve in-store experience
• Minimize out of stocks⁻ Vendor Cuts⁻ Fill Rate⁻ Vendor Stocking
• Ethnic Foods
Opportunities
48
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Initiating Change
• Play Branding Video