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9212006 - Marine Corps Community Services _MCCS_

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9212006 - Marine Corps Community Services _MCCS_ Powered By Docstoc
					                                                     For more information, contact the Plans, Policy &
                                                     Analysis Directorate, Personal & Family Readiness
                                                     Division, HQMC, at (703) 784-9517 or
                                                     e-mail: bryan.driver@usmc.mil




9/21/2006

                    Response on Traffic Appliances
 Information provided by Linda Shingleton, Hardlines (Traffic Appliances) Buyer,
      Personal and Family Readiness Division, Headquarters Marine Corps.


Q1. What were the total sales registered by Traffic Appliances during fiscal 2005,

how did these sales compare with fiscal 2004, and how are your year-to-date sales

compared with last year at this time? Also, what percentage of yearly sales take

place related to the end-of-the-year holiday season?

A1. MCX 2005 sales in the traffic appliances category were $5,687,103. YTD we are at

$3,089,477 or a 3% increase over last year’s. Holiday sales (Nov/Dec) account for 26%

of the total year’s business.



Q2. How large is your assortment? How are these areas being shaped to satisfy the

demand for the upcoming holiday season?

A2. MCX’s assortment varies depending on store size and volume. Our small stores

consist of 800 square feet; medium stores 1,000 square feet; and large stores 1,400 square

feet." We generally expand our assortment to add specialty items for the holidays such as
beverage/chocolate fountains and more festive, colorful, and holiday themed-inspired

merchandise.



Q3. How are these items currently being merchandised? Do you expand these

areas related to the end-of-the-year holidays?

A3. Traffic appliances and small electrics are massed out on fixtures for the holidays.

Adds are placed on end-caps or stacked in prominent, high visibility areas within the

department. Again merchandising depends greatly on the individual store size and

location.



Q4. What are the major trends impacting sales? Are the TV food channels having

any impact on your assortment and sales?

A4. The food channels greatly impact our assortment and have stimulated interest in

cooking. The majority of the chefs on television use KitchenAid appliances and thus our

sales are a reflection of this. TV ads and “AS ON SEEN ON TV” items are also

contributing to sales. For the holidays we will be featuring Hamilton Beach, and items

such as Brewstation, “Stay or Go” slow-cookers, Big Mouth food processor, and

Toaststation. Another great selling product that is highly influenced through television

ads is the George Forman Grill which still does very well for us. In addition, we will be

featuring the “Cook for the Cure” line from KitchenAid, which we anticipate will impact

sales. This line consists of “pink” blenders, mixers, food processors, and toasters

marketed in recognition of breast cancer awareness.
Q5. What are the top-selling products in the store assortment (please list brands)?

Why are these products so popular?

A5. MCX’s top selling products are Hamilton Beach/Proctor Silex (14% of total

business); KitchenAid (9% of total business); Conair (8% of total business), and

Windchaser (8% of total business). These brands are renowned for their quality,

dependability, and proven performance. Our top selling styles are as follows: Zojirushi

10-cup rice cookers; Sharp microwaves; Hamilton Beach’s irons; KitchenAid’s Artisan

5-quart mixers; Rowenta irons, and Jarden/Tilla food savers.



Q6. Are there any new items which have been placed on store shelves recently or

which will be coming to your stores that you are excited about?

A6. We have many new items that we will feature in our holiday ad from almost all of

our vendors, and here are but a few:

George Foreman’s “Next Generation Grill with removable plates”

Hamilton Beach’s “Party Crock 3-piece cookware set”

Hamilton Beach’s “Can openers, coffee makers, toasters, and blenders” in red & chrome

or black & chrome colors.

Hamilton Beach’s “AS SEEN ON TV” items



Q7. Please describe any promotions or special events related to these items that are

coming up during the end of fiscal 2006 and into early fiscal 2007.

A7. All the above items will be featured in our holiday ads and our “Last Minute Gifts

Sale.”
Q8. What are your goals for fiscal 2007, and how will you meet and exceed these

goals?

A8. Our goal for 2007 is to exceed the sales plan of $5,756,938 and to add the majority

of basic items to auto-replenishment. We also want to ensure that we continue to provide

our customers quality products and affordable prices.



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