Convenience Pulse Supplier Satisfaction

Survey 2014

Convenience Pulse, the annual convenience industry service satisfaction survey, is now in its third year. The service satisfaction field was commenced in September 2014 with large number of respondents from across the country, and for this third benchmark year, feedback received in this survey has been nothing short of phenomenal.

With more than 660 responses representing over 1,000 independent convenience stores, the overall collective feedback from retailers has been extremely positive. The united voice of the convenience retailers has been too strong to ignore. Convenience Pulse endeavours to bring this collective voice of convenience store retailers to the immediate attention of industry suppliers and wholesale service providers, with the mission to make a difference to the service levels being experienced currently.

Convenience Pulse would like to thank all those convenience retailers who took the valuable time to provide their feedback in this vital industry survey. The graphs indicate demographics captured in the survey. Apart from a wide representative sample across states and business types, significant levels of interest and commitment are also being observed from respondents, many of whom have commented that they have never been involved in this sort of medium to express their opinions.

The Convenience Pulse research enables the measurement of service and performance of the key market suppliers and their chosen distributors who service beverages, confectionery, tobacco, dry grocery and non-food, auto, snack food, chilled and perishables categories within the convenience channel.

Specifically measured are:■ Representative call frequency ■ Representative overall satisfaction

The relationship you have with each representative varies between all suppliers and brokers that you connect with daily.

Imagine the benefits to your business if these calls provided you with specific added value that enabled you to increase your business with all suppliers in the largest and most competitive convenience categories within the convenience channel.

By participating in this survey, your responses will provide valuable insights on current issues and topics that will guide suppliers as they direct their priorities within their field sales teams.

The end result will be a more tailored, proactive sales call procedure with benefits to both you and your convenience suppliers due to raised awareness of what constitutes a valuable convenience sales rep call.

SIMPLY COMPLETE THIS PRINTED SURVEY OR SCAN THE ATTACHED QR CODE TO GO TO THE ONLINE VERSION. THE CHOICE IS YOURS.

ALL FULLY COMPLETED SURVEYS WILL BE INCLUDED IN THE DRAW TO WIN ONE OF FIVE iPad Minis.

YOUR CHANCE TO WIN THE LATEST iPad MINI WITH WI-FI + CELLULAR NETWORKING VALUED AT RRP $389. Including 12 months warranty.

Responding stores will also go into the running to win the opportunity to have their site profiled in an upcoming edition of Convenience World.

All responses will be treated in strictest confidence. Individual details will not be

discussed, published or disclosed at any time.

SERV ICE SAT ISFACT ION SURVEY 2014

LATEST iPad Mini!

ONE OF FIVE

www.surveymonkey.com/s/conveniencepulse2014

Best Wholesaler Distributor: The Distributors

Best Confectionery/Snack Food Supplier: Nestlé Australia

Best Tobacco Supplier: Philip Morris International

Best Beverage Supplier: Coca-Cola Amatil

Best Convenience Food Supplier: Streets, Ben & Jerry’s – Unilever Australia Ltd

Best General Merchandise Supplier: Pacific Optics

Best Bread/Milk Supplier: Lion Dairy Drinks

Editor’s Choice: PepsiCo Australia New Zealand

Top convenience suppliers: overall satisfaction with rep

SATISFACTION RATINGS OVERALL

Beverages Tobacco Snack food and confectionery

Ice-cream and impulse food General merchandise

RESPONDENT NUMBERIn this year’s survey we collected 661 respondents versus 569 fully completed responses in 2013.

“We looked at the 2014 report as an incentive to continue focusing our value proposition to our customers on all the attributes they consider highly relevant.The increasing number of respondents of the 2014 survey, with the consequent broader segments covered, makes the report an even stronger tool to help refine, and boost where needed, our product and service offer to all our P&C customers. Hence, we definitely look forward to an ever-growing successful Satisfaction Survey in the years to come.”

Alessandro Garofalo – General Manager, The Distributors

* The above scores are a combination of extremely and very satisfied scores.

74%

67%

66%

57%

56%

55%55%

54%

51%51%

50%

48%

44%43%43%

39%36%36%

34%32%

27%26%

22%22%

21%20%

18%15%15%

14%12%

7%4%

Coca-Cola Amatil

Philip Morris

Streets Ice Cream – Unilever

Nestlé Confectionery

Smith’s Snackfood

Imperial Tobacco

Peters Ice Cream

Frucor

Superior Sales Force

Lion Dairy Drinks

Schweppes

British American Tobacco

Mrs Mac’s

Mars Confectionery

Mondelez International

Pacific Optics

Red Bull

Goodman Fielder

Parmalat

Snack Brands Australia

Wrigley

Stuart Alexander

Bundaberg Brewed Drinks

Australian Convenience Foods

Patties

George Weston Foods

Lipton – Unilever

Ferrero

Battery Specialties

Optus Prepaid

Go Natural Health Foods

GSK

Ferndale

This chart shows the overall satisfaction service levels of the

convenience key suppliers who have achieved excellence in overall

satisfaction with the rep. Coca-Cola Amatil has topped not only the beverage supplier category

ratings, but also the overall ratings this year as they have demonstrated that, with a strong

focus and clear understanding of stakeholder requirements, suppliers can provide very high levels

of satisfaction. With the call cycle satisfaction scores influencing all other rating parameters, it is imperative

that supplier reps ‘engage’ with convenience stores during every visit. Similarly, Philip Morris has topped the

ratings for the tobacco category nationally, while Streets Ice Cream-Unilever, Nestlé Confectionery, Smith’s PepsiCo and

Pacific Optics have led their suppliers’ impulse categories.

These companies, along with The Distributors group, were all formally recognised for their outstanding service to convenience

stores and their best supplier categories at the Convenience Retailers Choice Awards on February 26, 2015.

“The ‘Convenience Pulse 2014 Report’ has seen a marked increase in survey responses from independent retailers – a positive outcome for the purposes of this report.The results are indicative of the level of supplier service satisfaction from the retailer’s perspective, offering a credible and carefully measured analysis of supplier effectiveness year-on-year.In conjunction with the Convenience Retailers Choice Awards, the ‘Convenience Pulse 2014 Report’ is a critical resource for the continued growth of the industry and complements the Convenience World mission: to support, enrich and assist the petrol and convenience channel.”

Lorna Gloria – Editor, Convenience World

Turnover breakoutsState and territory breakouts Business profile breakouts

11%

36%

7%

2%

22%

21%

1%

SA/NT NSW WA Tas Qld Vic ACT

9%

13%

27%

16%

14%

5%

7%

9%

Up to $1m $1.1-$1.5m $1.6-$2m $2.1-$2.5m$2.6-$3m $3.1-$3.5m $3.6-$4m Over $5m

49%

24%

19%

8%

Independent convenience Other (tobacconist, newsagency)Organised convenience Service station

Attributes most important to respondents to improve key convenience suppliers

Looks to increase your sales and profit levels

Planogram and space management support

Regular rep call cycle

E�ective merchandising andpromotional display assistance

Understands your local business needs

Provides detailed information

Adds value to each call via professional business advice

Provides turn in orders to reduce OOS

68%

57%

46%

39%

39%22%

19%

16%

©Convenience Pulse 2015 - ACN 121 826 168/2015

The important attributes as ranked by the respondents show that when it comes to servicing their convenience store needs, it really comes down to providing a consistent regular call cycle: looking for ways to increase sales and profits that come from an understanding of their local businesses, and sales reps’ assistance at peak trading times and seasonal events by providing effective merchandising and promotional display support. These supplier reps need to also ensure effective communication on their products, promotional deals offered on displays and detailed timely product information. The wholesaler sales reps need to also deliver on this key supplier promise to increase their overall levels of convenience customer satisfaction.

Wholesaler sales reps need to focus on the overall supply chain needs of their major convenience store clients and ensure delivery times are on time and meet the delivery window. The office staff and management need to have accurate invoicing, where deals and promotions are an expectation by convenience operators. Being ‘in stock’ in all ordered lines is yet another important satisfaction trigger, along with prompt new lines advice. There are many other operational supply chain measures that appear as lesser overall service satisfaction levers, but these are expected as part of overall wholesaler service excellence. It is interesting to note over the page that the green bars are wholesalers and they rate very highly in overall service satisfaction versus the convenience store supplier levels, due mostly to their more frequent call cycles, depth of range, superior supply chain efficiencies, longstanding support staff forged over many years of successful convenience store-focused national and state-specific specialist businesses.

Total Sample N=661Total more than 100% due to multiple responses

Total Sample N=629Total more than 100% due to multiple responses

Attributes most important to respondents for traditional wholesale/distributor service providers

51%

49%

46%

43%34%

33%27%

18%

26%24%

26%

Offers deals and promotions

Advises on new products

On-time deliveries

Rep calling

Accurate invoices

Notifies on all out-of-stocks

Accepts phone orders

Fast credit claim processing

Delivery windows are met

Provides professional advice

Electronic ordering systems

©Convenience Pulse 2015 - ACN 121 826 168/2015

Convenience Pulse would also like to thank the dedicated team at Convenience World for supporting this independent research right from its inception. Convenience Pulse would like to invite all of you who have an interest in seeing improvements in your business to provide your vital feedback in the upcoming industry research initiatives.

If you require any additional information or would simply like to know more about us and our research, please contact Melanie at our office either by phone on +61 413 813 702 or email melanie@pulseplus.com.au

In a time of strong supermarket competition and private label infiltration, we need solid supplier support with a point of difference for convenience retailers to ensure continued growth and focus across the Australian convenience channel.

Convenience Pulse is a totally independent research company that is working closely with a number of industry alliances to ensure relevance and achievement of improved service level understandings.

Convenience Pulse aims to grow and consolidate this important research resource for the benefit of the entire industry.

PepsiCo recognises the importance of the convenience channel in providing  choice and availability of snack foods, and it is extremely

rewarding to receive recognition of our service and support through this survey. We wish to thank all participants who contributed.

We will ensure we use this valuable feedback to continue to improve our offer and service to this important channel.

Sarah Dinn – Field Sales Director, PepsiCo – Smith’s Snackfood

It is an honour to be recognised by so many convenience store owners and managers as the best convenience food supplier. We appreciate the time taken to participate in the survey. This feedback enables us to continue to drive this channel through our service and innovation.

Fiona Maggs – Customer Director, Unilever

CCA is proud to serve the P&C market and welcomes any feedback on what we do well and how we can improve. Thank you to everyone who has taken the time to complete the survey and provide the much-needed feedback we need in order to consistently improve our offer. We at CCA look forward to working with you all into the future.

Steve Mirams – General Manager, Petrol & Convenience , Coca-Cola Amatil

Thanks to the convenience store owners and managers who took the time to complete the third annual Convenience

Pulse Survey. Your feedback is valued and is used by Snack Brands Australia to deliver better outcomes in the convenience trade.

Glenn Vandewater – General Manager, Impulse and Independents – Snack Brands Australia

On behalf of the Aerial Marketing Team, I would like to thank all the respondents of the last survey. We were

thrilled to win the inaugural Best General Merchandise Supplier. The candid feedback provided is invaluable as

we shape our go-to market offer and strive to provide amazing customer service.

Martin Best – CEO, Pacific OpticsSuperior Sales Force places a high value on the feedback captured by the annual Convenience Survey. The detailed industry information provided gives us a clear indication of areas we can improve on, including in-field execution and the provision of better solutions for our current and future trade partners.

Jamie Lobina – Managing Director, Superior Sales Force