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Retailing: convenience A win-win situation the advantage for service stations is that retailers offer them the opportunity to reach more consumers and attract more repeat business. the service stations, on the other hand, give the retailer a wide selection of established and strategically placed sites across the country. technology has also added to what was sometimes an austere and Low margins uninviting forecourt environment. menu and product boards can be changed to suit breakfast commoditisation and lunch times, while screens at the have forced the service tills inform consumers of the weather, station business news and traffc in their area. model to adapt Graffti Digital, a division of Graffti and seek new revenue streams media, has installed more than 400 screens at the main tills on the forecourts of Caltex, total, Bp and shell where it was fve years ago, he believes, fuel retailers across the country. the with potential supply chain challenges company bought the screens to south Potential supply resulting from the greater complexity africa through a partnership with UK- chain challenges being relatively easily resolved. “the based amscreen. distribution process is not diffcult as Kyle Metz, GM at Graffti Digital, have been most retailers already have established explains that the screens run 24/7 and easily resolved supply lines and forecourts are just content includes live news and sports added into these. Previously it was often updates provided by times media, live a greater obstacle because of the small traffc feeds, as well as advertising quantities and long distances involved.” campaigns. He adds that on-screen ad end, it has partnered with standard Indeed, the public’s perception of campaigns have led to an increase in Bank on a loyalty programme called forecourt convenience stores was sales at point-of-purchase, especially uCount that will enable customers perhaps a bigger impediment than fMCG products. to both earn and spend points on managing the more complex supply according to research undertaken by its forecourts. another focus is to chain. “Consumers viewed convenience Nielsen, there are over 5 000 forecourt increase rollout of the Freshstop stores and forecourt retailers as rip-offs service stations in south africa and concept from the current 160 to all who charged them up to 50% more for a nearly r15-billion in sales are driven 800 Caltex outlets nationwide. product than a normal retail store,” Boyle by forecourt convenience. on average, notes. “We have had to change that consumers spend almost double at Cutting edge of retail widespread view – as well as the mindset forecourt convenience stores than they Joe Boyle, director at Freshstop, says of the forecourt owner – and bring do on fuel purchases. fuel retailers are heading towards competitive prices into the space, as well being at the cutting edge of retail, as get forecourts to sell more products.” to the point where a consumer can It has also been necessary to DAnette BreitenBACh buy almost anything at a forecourt. educate the forecourt owners about Has worKeD extensively in “We are looking at many offerings fMCG and related products, with fresh tHe BUsINess-to-BUsINess seCtor in a ConsultinG, – including chicken, a fsh and chip fruit being a prime example “Now, puBlisHinG anD eDitorial outlet, pizza, grilled meat and coffee. forecourt owners have become so CapaCity. until its Closure IN JULy 2013, sHe Was tHe We are also testing a doughnut shop savvy that they call us to ask when eDitor anD puBlisHer of and smoked meat brand.” they are receiving whatever fruit is in AdVAntAge magazINe, a B2B puBliCation tHat speCialiseD the situation is much improved from season,” he says. in aDvertisinG, MarKetinG anD MeDia. 24 24 strategicmarketing August–September 2014 strategicmarketing August–September 2014 IMM_Institute_ad_FA C.indd 1 2013/02/22 4:14 PM