As Direct Sales Controller Scotland for AG Barr, Ian Johnstone has played a major role in the company’s development in the convenience space over the last 25 years. We caught up with him to chat about AG Barr’s plans, and what makes a great c-store.
Factfile
Ian Johnstone began his career at AG Barr as a van boy.
He is currently Direct Sales Controller, Scotland.
AG Barr had quite a 2014 – how can you keep the momentum going?
The Commonwealth Games were amazing but there’s lots still happening this year. There’s £6m being spent on ‘Irn-Bru Gets You Through’. That is our long-term strategy; we took a break for the Games and we’re now back to that.
And another big promotion?
Bru Planet is a fantastic idea. That’s what we’re hanging our coat on for the summer. That’s how we’re engaging with consumers: special packs, in-store theatre. That’s the big one. And there are good promotions in there too.
How do retailers benefit from Bru Planet?
As well as the additional sales we’re hoping for, we’ve created ‘passports’ for retailers. There are six stamps to collect and it’s based around getting their store right: distribution, display etc. and we give them free stock for stamps. It helps us and helps them.
What do you look for in a c-store?
We’re big believers in theatre. When someone goes in to a shop they want an experience. It’s not just about buying bread and milk. I like it to be enjoyable. Smiles, staff that speak to me, a bright, well lit store with a bit of theatre.
And we hear you can create some mean in-store theatre yourself?
That’s right. I started a ‘beat the boss’ competition. I make a display and challenge my team to better it. Retailers can send us a picture of the display and we’ll give them selfie sticks to give away to customers.
Barr was always synonymous with glass bottles. How are they performing these days?
We still do a million cases a year of glass. 25 years ago it was all there was, practically. It is still the highest distribution of a single format in Scotland in impulse, so still very important. And it’s the best tasting format!
The plans for a deposit and return scheme sort of replicate the glass range.
We’ve got a deposit scheme and we’ve had it for 50 years. But we’ve got a model that shows giving customers more money to return doesn’t make them do it, as our return rate has been in decline for years. What’s been proposed would be very difficult for retailers.
Is it a good time for convenience?
Absolutely. What retailers must understand is that convenience is on the up: this consumer trend for shopping little and often is getting bigger and bigger. So for retailers, it’s about trying to understand those customers; what are they in your shop for? Look at what promotions work best and test those mechanics. Use EPoS to try to get into the shopper’s psyche. What missions are they in for? Make sure you’ve got an offering for all of those missions.
Are missions the future?
They’ll play a part, for sure. Take barbecues for example, it’s trying to say if you’ve got a take home pack of soft drinks, place it next to other take home packs. If someone buys papers and drinks. Have that range of soft drinks next to papers in the morning. Encourage them to buy more. Events play a part in that as well.
Is this another area AG Barr is focusing on?
We always have. From Christmas, Easter, Halloween and anything else. You don’t even need an event to create an event. Do your own! A barbecue section is ideal for that.
To finish off, what is your top tip for retailers?
Many shoppers are service driven and not just price driven. Those who are lucky enough to not have to consider price above all else, they want a smile, a ‘how you doing?’, a nice shopping environment. That’s what forms my choice of store and I’ll pay the premium for that. It’s about personal experiences. Do that and I’ll be back.
