Applause User Meeting January 19, 2010 John Williams Product Specialist Gilbarco Veeder-Root Agenda > Popular Upgrade Price Promotions Extended > Update on Video Library > Focus on Morning Timeslot > Q&A Offers extended on Audio/Video Upgrade and Color Retrofit programs > For 5.7” Mono Dispenser users > > > Order an EPP retrofit for an Encore 500 or S series dispenser and add an audio/video capable color screen retrofit for only $4,995 (list price.) Standard list price = $6,870) less than the cost for a factory-installed color upgrade! For 10.4” Color Dispensers without Audio Video > > > Dispensers manufactured before August 2009. Upgrade package for current color dispensers: $399 limited time pricing per dispenser ($799 if ordered after 12/1/09) Includes: > New accelerator card (one per dispenser) > New software Offers Extended > Audio/video content libraries until March 31, 2010 > Online training on audio/video functionality. New on User Portal Volume Control for your A/V Enabled Dispensers > Available under the Support Tab on User Forum Media File Specifications – Including A/V Files > Available under the Resources Tab On User Forum New Report from The Coca-Cola Leadership Conference > Available under the CAMPAIGN PLANNING tab on User Forum Current Video Library Bakery Products Beer Selection Bic Lighter Breakfast Burrito Breakfast Sandwich ButterFinger Candy Chicken Trio Chips/Cookies/jerky Coffee Beans Café Coffee Coke Fountain Drink Coke "Open Happiness" Coke Zero Corn Dog Dasani Diet Coke Dr. Pepper Energy Drinks/Waters Enviga Tea Foambrite carwash/Ryko Fountain Drinks F'Real Milkshakes FrozenDrinks Fuze Tea Gold Peak iced Tea Healthy Snacks No Audio x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x With Audio With Text Overlay x x x x x x x No Audio Hot Chocolate x x Hot Dogs x Hot Dogs x x Icee Brand Drink x Kit Kat with Coffee x Klondike Bar x Lottery x x Lunch/Sandwich x x Milk x x Miller Lite x Nachos x Nerds x Pancake Breakfast Sandwich x Big Subs x Breakfast Burrito x Chicken Trio x Pizza x Planters Peanuts x Popcorn x Pretzels x Skittles/Starburst x Pretzel Pieces x Sprite x Sweetarts x Vitamin Water x Wonka Gummies x With Audio With Text Overlay x x x x x Focus on the Morning Day Part Morning Day-part Facts > About 28% of all gas transactions happen between 5 and 11AM > Morning business commuters are key demo > Over 87% of morning commuters drive alone > School bound commuters are second target > Parent with one or more child in car > Major reported traffic drivers at the convenience store are tobacco, coffee, water and other packaged beverages and breakfast foods. Focus on Morning Food Services > Other than late night, breakfast is the only time when c-stores hold comparable share to QSR and restaurants in food service. > Core C-Store Breakfast eater > Male, by more than a 2 to 1 margin > Between 35 and 44 years old > Place a high premium on convenience The Breakfast Trifecta > THE AM PITSTOP Customer > The drive-by experience > Fill-up and make tracks > “Getaway Break” Customer > a brief but necessary pause in the routine > Opportunity to relax, and gear up for the day > “Personal Oasis” > Looks for the full-service, fully enjoyable experience Source: ConAgra study of 3000 breakfast consumers Emerging Competition > QSRs getting aggressive with Pit Stop Customers > Quiznos and other sandwich franchises introducing breakfast menus > Jack in The Box, Burger King aggressively marketing “grab-n-go” > McDonalds offers premium coffee/expresso services > Coffee and Juice companies go for the getaway break crowd > Oatmeal and Sandwiches at Jamba Juice, Caribou. Even tests at Baskin Robbins > Groceries marketing enhanced bakeries > Seating and free coffee refills > Quantity packs aimed towards offices Starbucks and Other Factors > With drop in tobacco related business, stores need to build their focus elsewhere – particularly in the AM. > Quality coffee isn’t what it used to be > > > Breakfast menus are expanding > > Only 52% of adults drink coffee. Near glut of coffee bars and alternatives in most urban markets More breakfast choices with focus on convenience More focus on fresher and healthier offerings How to Defend and Grow Share > More focus on the 48% of customers that don’t drink coffee > Promote waters, fruit drinks, and other healthier beverages > Energy drinks and energy “shots” are growing caffeine delivery substitutes > Keep cost low and value high > Target food service item below $2.50 with focus on high value per > bfast sandwiches for burritos for “2 for $2.49” is winner > Remember that 87% of commuters drive alone > Special deal on 16 coffees “when you buy 2” not likely a winner Defend and Grow Share > Make an effort to target women > Offer healthier fare such as yogurt, breakfast bars > Photos of females in ads. Make them feel welcome > Re-enforce need for breakfast in promotion copy > People who eat breakfast have easier time losing weight > Focus on variety and convenience > Mix in ads for other convenience items such as aspirin, chapstick, etc. Products targeting new customers Female Friendly Water Brands Fresh, healthy dairy Healthy Grab-N-Go Snacks Fresh, baked bread Morning Beverage Alternatives Meal Replacements Core Prepared Breakfast Products > 77% of Americans have consumed a prepared breakfast sandwich in last 12 months up from 73% in 2008. (Source:NACS) Search: Breakfast Sandwich Search: Breakfast Burritos > Ethnic food variations catching on. (Burritos, tacos) > Current library has over 18 different breakfast sandwich images. > Landshire and Lettieres recently added to library > Have tried repeatedly to get Deli Express without luck. (Call them direct.) Quick Update on Coffee Products > Many branded coffee products out there. Most regional. > Encourage your vendor to provide us with color images > Ronnoco, Van Houte, Community and others in system. Animation available on user portal > If you have custom branded program or serving cups, you will need to provide photos/images. > Market swinging away from elaborate offerings in many markets > Hot Chocolate and “drip coffee” will bring in more customers than “latte, mocha, or cappucino.” 1 hot chocolate and 2 coffee videos available Summary > Morning traffic is more than ¼ of daily traffic, and the products in demand are often different than at other times of day. It’s worth spending time to build a unique schedule to target customers. > Think past coffee and donuts – especially in beverages. 48% of adults don’t drink coffee. What do you have for them? > Value and variety are key, and cost is a factor. > Women skip breakfast more than any other demographic, and are also most aware of the value of a good breakfast. It’s a key audience that probably isn’t coming into your store already.