Editor’s Note: The McLane/NATSO Foundation Index is one of the many knowledge resources NATSO produces in our quest to deliver solutions to help NATSO members make good business decisions.
The index is produced quarterly and offers NATSO members the opportunity to compare their average weekly convenience store purchases with those of travel plazas and truckstops serviced by supply chain provider McLane.
The most recent McLane/NATSO Foundation Index was recently released. Members may sign in here to read the full McLane/NATSO Foundation Index.
To commemorate the release of the recent index, McLane has shared their industry expertise again in the form of their “Ask a Category Manager” series. McLane produces this downloadable category information monthly. Over the next few days, Darren Schulte will be exploring the topics covered in the “Ask a Category Manager” series from the truckstop prospective. – AT
Sales Of E-Cigs Could Top $1 Billion; Get Your Truckstop In On The Action
As referenced in McLane’s “Ask a Category Manager” on cigarette and other tobacco product trends, “Electronic cigarettes have entered the tobacco category with a bang. There is an estimated 2.5 million e-cig smokers currently in the U.S., and analysts are projecting that sales of e-cigs could top $1 billion within the next three years alone.” (Download the “Ask a Category Manager” on cigarette and other tobacco product trends here.)
What does this mean for truckstop operators?
As the recent Mclane Index has indicated, electronic cigarettes continue to grow in demand making it one of the few non-food products that consistently show double-digit growth.
Like any product experiencing a growth trend, it is critical that you create a plan of action to take advantage of the growth opportunity. Simply just carrying the product, in this case electronic cigarettes, will not lead to the success you may be seeking. Your action plan should at a minimum consider the following:
- Messaging and Marketing: Do customers know you carry the product before they enter your operation and does that message continue into your operation?
- Placement Of Product: Are the electronic cigarettes placed where customers can see them? Do customers who often spend less than three minutes in your store easily recognize that you sell them as they are standing in the transaction counter line? Or, are they hidden behind racks of semi-selling merchandise? Placing new products on the back shelf of your counter will not lead to strong sales during your initial roll-out and first year measurements of performance.
- Team Member Knowledge: Can members of staff, particularly frontline staff, speak to the features and benefits of the product? Customers have a lot of questions and they will often purchase those products that they are educated on.
- Product Selection: Do you have the flavors customers want? Do not go overboard with flavors, but do your homework. Understand what flavors are selling in your traditional cigarettes and use that as a benchmark.
- Brand Selection: Similar to product selection, are you carrying the correct brands that are selling such as Metro and Blu for example? You do not need all the brands that are available, but you need the brands that your customer is looking for.
- Accessories and Refills: Do you have the proper accessories? Give some thought to accessories as when done properly accessories can generate additional, very profitable sales. Ensure you carry the accessories you need for your brands and the universal accessories. This allows you to meet the needs of all electronic cigarette puffers.
/// Post provided in partnership with NATSO Chairman's Circle member McLane. McLane is a highly successful $34 billion supply chain services company, providing grocery and foodservice supply chain solutions for thousands of convenience stores, mass merchants, drug stores and military locations, as well as thousands of chain restaurants throughout the United States. Learn more about McLane.
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