
Team Maverick
By Mary Ellen Kuhn
A good game plan and plenty of teamwork have
dramatically upped candy’s place within this nimble, Florida-based
convenience store chain.
Kevin Cook knows a
thing or two about both competition and teamwork. He’s a former
college athlete (football and track at Columbia University) with an
athletic spouse (his wife, Laura, played basketball for the West Point
women’s team.) Now he and Laura have six sports-oriented offspring.
The family includes two highly ranked competitive divers — daughters,
Kara, 16, and Kassidy, 10, both of whom are currently training in Houston
with world-famous diving coach Kenny Armstrong.
On the business front, Cook has applied his
competitive instincts to the task of assembling a successful, 30-store
chain of Florida convenience stores in which candy has assumed all-star
status as a contributor to sales and profits. Cook’s company,
Maverick Management Inc., owns one of the convenience sites; the remaining
29 are operated via franchise agreements with either Mobil or Shell oil
companies. Twenty-six of the stores are in the Orlando area, and the
remaining four are in Fort Lauderdale. Cook’s approach to the candy
category and to the business overall has involved more than a little
teamwork — within his own organization, with vendors and with
convenience store distributor Eby-Brown.
This past May, retailing veteran Melissa Barker joined
“Team Maverick” as operations manager, and she, too, has been
instrumental in building up the candy category within the stores —
working with Eby-Brown to re-set the entire category, adjusting pricing to
make it consistent, meeting with vendors, and basically doing whatever it
takes on any given day to get the job done.
After a bit of commuting back and forth from
Jacksonville, Fla., where she had been living and working, Barker moved to
Orlando in early June and began tackling the job in earnest. Candy
plan-o-grams were revamped by mid-June. “And by the end of July, the
numbers were really starting to show a difference,” she reports.
Candy’s position within the operation has
advanced in recent months. “We’re up from about 16 percent [of
total purchases from Eby-Brown] to about 23 percent,” Barker reports.
“And overall sales are up, so we’re doing nicely.” And
with candy margins in the range of 35 percent to 40 percent vs. 17 percent
to 18 percent or so for a category like cigarettes, it’s contributing
nicely to profits as well.
“Candy has evolved for us,” reflects Cook.
“It’s earned its spot in the store.”
How they did it
The candy revamp is designed to put products where a
consumer might logically seek them out. “I tried to come up with a
plan-o-gram that followed what I consider a sensible path, going from your
chocolate over to your fruity over to your gum and mints,” says
Barker.
“You really have to diversify the category and
manage it like many small categories … so the first thing I looked at
was what do we have, what are we selling? How much space do we have? And
how do we maximize our profit potential in that space?”
The new plan-o-gram brings theater boxes and king-size
bars to the forefront in the checkout area. Special attention has been paid
to ensuring that kids’ candy is placed at kids’ — not
adults’ — eye level.
“So if you walk out to the gum and mint
category, you’re going to see that the Altoids are up high and the
Chiclets and Bubble Yum are down at [an adult’s] knee level,”
says Barker. “It’s definitely helped our sales because the
right person sees the right items.”
As part of the process, Barker and team also turned
their attention to the store layouts — and in particular, where candy
is positioned within the stores. Barker found, for example, that in some
stores, the aisle leading to the cooler vault was occupied by grocery items
rather than candy. Moving candy into that high-traffic, prime real estate
within the store just made sense, she notes.
Game plan
With the stores re-set, Barker is committed to staying
ahead of the game and working with Eby-Brown and candy vendors to schedule
product introductions and promotions as far out as possible.
“We’ve got 11 new items just between
Hershey, Nestlé and Masterfoods coming out before the end of the
first quarter,” Barker reflects. “We’re in the middle of
doing store re-sets now. Knowing that those items are coming enabled us to
allow space for those items without having to go back and re-set the entire
candy section or throw off our flow.
“If you look right now,” Barker continues,
there are two facings of Hershey’s with Almonds because they have a
new one coming out that is a Hershey’s Nut Lovers that is a permanent
product. So we’re making a spot for that. It will go right in line
where it needs to go, because it really should follow the traditional
Hershey Almond,” she adds.
“To make space for it now, to give it a good
visual spot in our set ahead of time is huge. Otherwise it gets stuck
wherever you’ve got space,” says Barker.
Keeping the plan-o-gram consistent and well organized
is particularly important, says Barker, because the company has an
extremely high base of repeat customers.
“Almost 70 percent of our customers are repeat
customers, which is strong,” she says. So that customer knows where
we keep Twix candy bars, knows where we keep Doublemint Gum.
“The integrity of the plan-o-gram is important
to us for managing the category and for keeping the product fresh,”
says Barker. “And for the customer’s benefit as
well.”
Lots of candy
One of the things a visitor to a Maverick Mart notices
right off the bat is the number of places that candy can be found within
the store thanks to an ample assortment of strategically positioned
floor-stand and countertop display shippers. This has the dual advantage of
putting candy within ready reach for store patrons as well as allowing
Maverick to capitalize on the vendor rebates that accompany shipper
commitments.
Cook is quick to credit Eby-Brown’s role in the
chain’s candy merchandising successes — and the company’s
role in making new product decisions, supplying product movement data,
setting shipper programs and more.
“It’s a collaboration — between
Eby-Brown and us,” he says. … “The magic is trying to
meld everything together … getting the new items moved in with the
existing SKUs, satisfying everybody’s SKU requirements in terms of
allowances and rebates, and positioning it in the store so it sells. We
don’t have it down to a science, but I think we’re getting
better at it.”
Shipper savvy
Under Barker’s attentive direction,
merchandising display shippers is a well managed process. Shippers are
carefully scheduled; store personnel ensure that they are in place on the
first of each month and off the floor — in order to make room for the
next month’s offerings — by the 30th of the month.
Sell-though in 21 days is optimal, says Barker.
“That’s what we shoot for, and I’d say that 50 percent to
75 percent of our shippers probably hit that,” she notes.
“Three weeks into your exposure,” she
continues, “if you haven’t sold three-fourths of the shipper,
you’ve got to move it; you’ve got to change it because
something is not working for you.”
“As a retailer,” Barker continues,
“I think that shippers are a great way to introduce new items, a
great way to get that extra impulse sale, but you’ve got to keep an
eye on them. You can’t take them for granted.”
Other promotions
Of course, very little is taken for granted at
Maverick Marts — especially when it comes to the consumer. Cook even
schedules periodic “Customer Appreciation Days,” which offer
mart patrons promotionally priced food and beverages and other treats and
is staffed by Maverick managers.
Members of the Maverick team definitely get into
having a little fun with candy.
“I told our managers that they were all going to
get a $100,000 bonus,” notes Barker. “Then I sent each of them
a 100 Grand candy bar with a thank-you note.”
For the PayDay lottery ticket, Maverick Marts ran a
promo offering, what else but a PayDay candy bar with the ticket purchase?
The company purchased the candy on a deal from Eby-Brown, so the cost was
minimal, “but it generated some excitement, created some
traffic,” Barker reflects.
Maverick also does cross promotions with candy and
beverages as well as your basic, “three for 99 cents” offers on
candy. Thanks to the warm temperatures in Florida, those offers typically
run on non-chocolate items rather than candy bars.
“Unless you’ve got two people with
you, you’re probably not going to pick up three chocolate bars for 99
cents when it’s 90 degrees outside,” Barker notes.
In terms of merchandise assortment, the Maverick Marts
are adding some additional sweets and snacks targeted to Hispanic
consumers. “It’s becoming a larger piece of our
business,” says Barker.
The high concentration of tourists in both the Orlando
and Fort Lauderdale markets also affects candy assortment decisions.
“We have to look at not only what’s hot in the Southeast or the
rest of the United States, we have to keep abreast of what’s going on
all over. So I try to read and research and really pay attention to market
trends, not just for the Southeast, but for the global customer,” she
notes.
When making assortment and merchandising decisions,
she also keeps the chain’s female-dominated demographic in mind.
“I like to tell our managers that I am a typical convenience
store consumer,” says Barker. “I have two kids. I have soccer
practice and piano lessons and guitar lessons and basketball practice and
team sports, and I’m a team mom. And I work 80 hours a week. There
are things that I look to that convenience store for. What’s new and
what’s hot? If I’m picking up kids from soccer practice, what
can I get that I know they’ll like?”
One suggestion: check out that new and improved
Maverick Mart candy set. It’s clearly a can’t miss proposition.
Succeeding with Shippers
Marketing consultant Jim Callahan, president of
Convenience Store Solutions, Newnan, Ga., has played a role in developing
candy display shipper sales within the Florida Maverick Mart stores.
Callahan offers the following advice for maximizing shipper sales.
1. Get the shipper onto the store floor as soon as
possible. (You’d be surprised how many shippers sit in the storage
area for weeks after they’ve arrived.)
2. Make the shipper
readily visible to the consumer by positioning it in a prime traffic area.
3. Ensure that the shipper incorporates eye-catching
point-of-sale materials that clearly communicate the offering. Even if the
vendor does not provide it, the retailer can generate it.
4. Don’t limit signage to the shipper. Install
it in locations such as soft drink cooler doors, store doors and —
believe it or not — “eye high in the rest room.” (Talk
about a captive audience, Callahan quips.)
5. Encourage store staffers to do some
“suggestive selling,” reminding customers of the candy
offerings on sale.
Meet the ‘Maverick’
After graduating from Columbia University, Kevin Cook
began working in the marketing division of Mobil Oil Co. in New York City,
eventually moving into operations as the area manager for all Mobil gas
stations in Manhattan and the Bronx. In 1984, when Mobil acquired Sonoco,
Cook was transferred to Florida with the mandate of converting about 100
Sonoco stations to Mobil stations. When that task was accomplished, Mobil
was ready to transfer him back to the Northeast, but Cook decided to stay
in Florida and start his own business.
When it came time to choose a name for the company,
Cook opted for “Maverick” in homage to a term a supervisor at
Mobil had once applied during a performance appraisal discussion.
Running a convenience-store business has never been a
spectator sport for Cook. “When I left Mobil, I started with one
store, and I ran it hands-on,” he says. “That’s where you
get your education. By placing the orders every week you can see what sells
and what doesn’t sell. I guess it’s kind of on-the-job
training, baptism by fire.”
Nineteen years after he started his business,
he’s still closely connected with day-to-day operations and in close
contact with the members of the Maverick operations team. “It’s
truly a 24/7, 365-day-a-year career,” he reflects.
Position: President, Maverick Management Inc.
Age: 48
Family: Wife, Laura. Kids: Kevin, 18; Kara, 16:
Kelsey, 15; Kylie, 13; Kassidy, 10; and Kendall, 8.
Best Part About Having Your Own Business: “The
flexibility it affords you in terms of making your own schedule and
decisions.”
The Down Side: “When you work for yourself,
the boss can be unreasonable!”
Words to Live By: “The harder you work, the
luckier you get.”
Shop Talk and More with the Operations Manager
Melissa Barker hasn’t hit 40 yet, but already
she has racked up 22 years of retail experience. That experience starts
with clerking and also includes working as a store manager, an auditor and
a training supervisor.
Barker comes to Maverick from Jacksonville, Fla.,
where she was employed by First Coast Energy, a large gasoline wholesaler.
Her career includes 14 years with Star Enterprises (Texaco), four years
with Circle K, and a couple of years working as a private consultant.
Position: Operations Manager
Age: 39
Family: Divorced mother of two daughters,
Candace, 19, and Christina, 15.
Academic Credentials: Degrees
in marketing and business from Georgia State University
Outside Interests: Tennis, reading, and working
on the restoration of her recently purchased, 85-year-old home in
Winterhaven, Fla.
Words to Live By: “The customer is never
the interruption in our work; they’re the reason for it.”
and “Keep the balance between family and work.”