MULTI-UNIT PRICING Core-Mark’s customized multi-unit POS program Compete for Every Dollar The strategy of multi-unit pricing KING DOLLAR % CHANGE Large C-Store Chain Impact Example Every time a customer enters your store, an opportunity exists to strengthen your relationship with that consumer, capture additional revenue and make a case for their business, with future trips to your store. $2.29M $2.01M $2.48M One effective way to build a relationship with your customers while increasing your sales is through multi-unit pricing. For the first 35 time ever, Core-Mark now offers a Multi-Price POS ordering website where you can customize 31.30% signage for Candy, 30 MIlk and Water. Now you can give your customers the options they are searching for. 23.3% 25 17.70% 20 15.10% 14.6% 15 10 5 Candy 0 -5 1.9% 4.3% 3.5% -7.2% -16% -13.3% -12.3% Q1 `07 Q2 `07 Q3 `07 Q4 `07 Q1 `08 Q2 `08 Q3 `08 Q4 `08 Q1 `09 Q2 `09 Q3 `09 Q4 `09 King Avg Qtr Multi-Price How You-10Can DriveCycled Sales in The Right Direction. Reintroduced Introduced the Intro -15 Multi-Pricing in 2006 The candy commodity provides a 49.7% gross margin. Two key steps that help you get the most out of your -20 candy categories are: • Leverage impulse purchases with multiple displays, offering merchandise for variety and true profit. • Apply a multiple-price point strategy to drive sales. Multiple price points drive sales and profitability in the convenience class of trade. Everyday multiples deliver the best results for customers. An estimated 35% take rate on both standard and king size. KING DOLLAR % CHANGE Large C-Store Chain Impact Example Multi-Price Introduced in 2006 Cycled the Intro Removed the multi-pricing Reintroduced Multi-Pricing 35 30 25 in Millions 20 15 10 5 0 -5 Q1`07 Q2`07 Q3`07 $2.29M Q4`07 Q1`08 Q2`08 Q3`08 $2.01M Q4`08 Q1`09 Q2`09 Q3`09 Q4`09 King Avg Qtr $2.48M -10 -15 -20 At this take rate, standard bars will deliver a 26.3% increase in profit and king size will deliver a 23.7% increase. Water 100% Mountain Spring Water can help catapult your 1-Liter business! Nestlé Waters 1-Liter, 2 for $2 promotion drove a national C-store Retailer’s business sales growth of 22% versus last year!* * Source: National C-Store Retailer, May-July 2010 vs. May-July 2011 National C-Store Water Sales with promotion +4% +22% 84.2 87.3 2010 2011 +14% 2010 18.5 2010 2011 Unit Volume APSD Take Rate National C-Store Water Sale with promotion 100% Mountain Spring Water C-Store Share** 2011 YTD share 25 20 16.2 2011 22.0 15 15.0 10 13.6 10.6 11.5 static clings drives +22% to the promotion attention regional brands available 5 0 2010 Arrowhead Nestlé Pure Life Aquafina Dasani Private Label ** Source: Nielsen C-Store, Total Bottled Water, YTD through July 16, 2011 2011 Unit Volume +14% 18.5 2010 16.2 2011 APSD Improve Your Sales With Signage What’s Your Plan? “2 for…” channel strips, shelf talkers, cooler clings and posters are ready for you to customize online at www.core-mark.com/buysmartandsave, use the registration code “coremark”. For more details contact your Core-Mark representative. Consumers are looking for value. Grab their attention with signage! Channel Strips Shelf Talkers Cooler Clings 1685 7/2012 Single & Double Sided Posters