Across the Street Team Members: Abby Jones, Chandler Gaddis, Chris Gray, Patrick Weiland, and Wilson Wood Project Coaches: Carly Trost and Amy Stewart Project Sponsor: Cory Hopkins
Overview
What can we do differently for our RaceTrac stores that are “across the street� from our top competition stores (QT/Wawa/7-Eleven) to make them more competitive?
Background
$
GAS PRICES
LOCATION
SIGNAGE
IN STORE
Background
KIOSKS
MOBILE ORDERING
DRIVE THRUS
Is there a low-cost, low-risk solution?
Background Background
SELF SERVICE, OUTDOOR VENDING
Target Customer
I guess the Y wore her out? So now I sit parked because this cranky girl will not be woken up by me!
Trac to Win
On Trac To Win. RaceTrac MAP STRATEGY
VISION We will be a great place to work and the store of choice for people on the go
OFFERS Inviting stores that capitalize on destination drivers and surprise and delight our Guests.
Decision Factors
What is outdoor vending solving? Serves as a decision factor that attracts guests to our stores instead of our competition Exposes pump-only guests to in store offers without changing their habits
Fuel and Flee What percentage of RaceTrac guests are pump-only customers?
Fuel Guests 40% Inside Guests 60%
â…” of fuel guests are pump only
Pump-Only Statistics WHY AREN’T YOU ENTERING THE STORE TODAY? RaceTrac-Specific Survey 60% of guests indicated they do not go in the store, here’s their reasons why
No Customers Indicated ❖
No Services
❖
Store is dirty
❖
Unfriendly staff
Market Size
5,400 Pump-only guests PSPW
31% of pump-only Guests do not go inside because of time constraints or they have children with them
1,111 Target segment guests PSPW
Intercept Information
“I can’t go inside the store because my baby is in the backseat
40% of responses aligned with Krystyn’s predicament
“If I have time I’ll get a drink or snack
Benchmarking
WHO ELSE IS IMPLEMENTING THIS?
Benchmarking
VENDING MACHINES ON THE RISE No longer a big, bulky box
Benchmarking Refrigeration Touchscreen
Motion sensors that trigger sound
Inventory Management
Vinyl wraps
Digital Signage
Cashless Payments
Recommendation
Refrigeration Interactive Cashless/Cellular Payment Network Digital Signage Inventory Alerts Able to Hold Beverages
Risks & Considerations
OPERATIONS
SECURITY
RISKS
MARKET BASKET
REGULATIONS
POWER
VISIBILITY
CONSIDERATIONS
Solutions -Risks/Mitigation Risks/Barriers IMPACT ON OPERATIONS ❖ Safe restocking timeframe ❖ Restocking time cost: 7 min
CREDIT SECURITY ❖
❖
3rd party cellular network ➢ Data breach would not fall back on RT PCI DSS compliant
CANNIBALIZATION OF SALES ❖ Hand pick products with lower market baskets ❖ Consider only RaceTrac private label
Additional Solutions - Risks/Barriers Considerations MUNICIPAL REGULATIONS ❖ Varies by city
CONSTRUCTION & POWER ❖
Spare conduits available in remodels and 6Ks
VISIBILITY & MARKETING ❖ Promotional Signage ❖ Advertising & Push Notifications ❖ Word of mouth & return customers
Expected Margin EXPECTED MARGIN If Krystyn buys 1 bottle of Coca-Cola, then Racetrac makes $0.60.
Costs EXPECTED COST For Krystyn to keep access to her stockpile of beverages and snacks, the following costs are incurred: Buy DMVI Machines
$3,000 each
Annual Maintenance (10%)
$300
Monthly Service Fee
$14
Card Processing Fee
5.95% Per Swipe
*Reallocation of labor
(7 minutes)
Payback PROJECT PAYBACK â?– Looking at a single machine, if we keep on going with around a $0.60 margin:
Additional Benefits
SOFT BENEFITS
Pilot Plan Pilot Plan INSTALLATION 4 vending machines in 4 stores across the street from competitors GA Region Test Stores 2311 - Northlake 2359 - Bells Ferry 2351 - 129 & Ridge 2340 - Braselton
Strategy Top selling SKUs Private label
OPERATION Run for 3 months TEST INVESTMENT $48,000 for equipment $672 Total service charges
Placement STORE
ROAD
Key Metrics
$ FINANCIAL $200 PSPW
CANNIBALIZATION No more than 5%
SOCIAL MEDIA CALLOUTS 90 mentions
OPERATIONS 7 min restock, Safety
Plans for Rollout
❖
FL 6Ks and remodels with competitors directly across the street
PHASE 3
PHASE 2
PHASE 1 ❖
Install in all stores within FL market
❖
Rollout to entire fleet
Final Thoughts
QUESTIONS?
Appendix
Appendix
Appendix
External Factors ● Soda Tax ● Our technology becomes obsolete