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Single-mindedness Brings Success
Specializing in c-stores helps TNT Marketing compete against the bigger brokers.
by Cecelia Blalock
When TNT Marketing started in business back in 1994, it called itself The Mighty Ant. The Arlington, TX-based independent convenience store broker had few people and was competing against the giants in the industry, recalled President Bob DeMott.
"An ant may be small, but together ants can accomplish great things," he said. "We relied on our philosophy of focus, focus, focus. Use your understanding, knowledge, and experience."
Growth was steady, and TNT blossomed into a national broker with representatives scattered coast to coast. With 55 employees, TNT is still small compared with the largest brokers, but it has something most of the big guys don’t offer: more than 500 years’ combined experience in the c-store trade.
"It helps that all the people who work here and in the field, from top management through accounting, marketing, and sales have come from strong c-store backgrounds in all areas," DeMott said. "Some have worked for manufacturers, some for retailers, others for other brokers."
TNT’s strategy is to focus exclusively on the c-store channel, in the process becoming the only independent national c-store broker. The Mighty Ant logo has given way to TNT’s C-storologistSM.
"As we continued to grow we were searching for a new way to let people know what we are all about," DeMott said. In brainstorming ideas for a new identifier, they zeroed in on the idea of the specialist.
"If you have a specific medical problem, like a heart problem, you don’t go to a general practitioner you go to a cardiologist," he observed. DeMott’s son Jason, now the marketing director, coined the word C-storologist.
The catchy phrase caught on, so much so that TNT had it trademarked. More than one manufacturer told DeMott that what was most impressive about TNT’s presentation is that the company truly is a specialist in the c-store field.
Specialization pays. TNT Marketing has enjoyed a more than 30 percent increase in sales over the past five years.
Only the Best
The products may be the same as in grocery stores, but c-stores present unique challenges to manufacturers and brokers. Space is much more limited, pack sizes are different, and turns need to be higher. There is little room for large, fancy displays, and promotions are handled differently.
TNT does not handle tobacco, milk, and store-delivered drinks, the highest turn categories in c-stores. Its highest turn category is snacks and/or confections.
So what’s the company’s formula for success?
TNT Marketing helps companies increase product distribution by identifying items popular in c-stores, building c-store programs that work well, and customizing account presentations.
"We focus on the major brands," said DeMott. "We should have the number one brand or no less than the number two brand in grocery, frozen foods, general merchandise, HBC, salty and sweet snacks, automotive, and foodservice."
Top brands are particularly important for items that do not have high turnover. A well-known brand may enough to persuade a consumer to buy the item at a higher price at a c-store rather than stand on line at a grocery store.
Among the impressive list of brands offered by TNT are General Mills, ConAgra Frozen Foods, Domino Sugar, Bayer, Gillette, Prestone, Duracell, and Unilever Bestfoods.
Dole Food Co. selected TNT to represent its fruit and juice products to c-stores across the United States.
"In order to attain the visions of Dole being the No. 1 supplier of packaged and portion fruits to the c-store industry, it was important for us to align ourselves with a national broker organization that had all of the core capabilities necessary to assist us," said Earl Williams, national accounts manager of convenience stores for Dole in a release announcing the selection. "We selected TNT because of its national coverage, convenience store and customer focus, and teamwork, consistent through all parts of its operations."
Not all products are winners, DeMott noted. In TNT’s salad days, it carried a horse shampoo called Mane. At the time, beauty experts were touting the virtues of horse shampoo for making women’s hair soft, shiny, and healthier looking. For a brief period, Mane leaped off the shelves. But like most beauty fads, this one died a quick death, along with sales of Mane.
"Mane reminds us to laugh at ourselves," DeMott chuckled.
Staying Ahead of the Curve
Getting and keeping brand lines means keeping manufacturers satisfied by improving their business, according to DeMott. Most major manufacturers have their own marketing departments, although much of their efforts are directed toward other channels. But with some 120,000 c-stores now dotting the U.S., manufacturers are beginning to pay more attention. TNT offers these manufacturers an in-depth working knowledge of c-stores unmatched by more diverse brokers. The fact that TNT operates one main headquarters from which all efforts are developed and driven appeals to both c-stores and manufacturers.
"We have manufacturers working with us on a regular basis to give us help in understanding their products and how we can work with c-stores," said DeMott.
A Different Duck
In DeMott’s view, the c-store channel remains one of the most interesting. Larger c-store chains are growing ever more sophisticated, particularly in their use of technology, but at the same time, between 40 percent and 50 percent of the channel is made up of smaller independents who operate one to ten stores.
"It’s still a niche," DeMott said. "C-store chains and even individual stores have their own personality. They do things to draw customers. There’s lots of creativity."
Nothing is static when it comes to c-stores. The mix of business and suppliers is changing, thanks mainly to the increased number of mergers and buyouts in retail and wholesale. Competition from other channels is heating up, as retailers like Wal-Mart, club stores and even grocery stores add gas stations. Margins are shrinking, and c-stores are looking for other ways to make profits. Some c-store chains are opting to focus on a particular market, such as urban or rural stores.
"These changes pose challenges to TNT to stay on top of things," DeMott noted. "We need to maintain relationships and attend trade functions to see what management is thinking. They don’t always tell us everything, but we can get a feel for changes in direction or for what is succeeding and what is not. We pass that information along to manufacturers."
It’s that ability to keep its finger on the pulse of the c-store industry that helps TNT get and maintain top brand lines and to work successfully with manufacturers.
Professionalism is on the rise in the larger c-store chains as advanced communications systems streamline interactions among partners and provide detailed data.
"Category managers can more readily tell what will be successful and they can tell it faster," said DeMott. "They are very professional and are interested in fact-based selling and category management. It puts pressure on us to be more professional as well."
Relationships are still very important, he said. Today’s relationships are based on knowledge. TNT uses the information and strategies it gleans from working with the larger c-store chains to help the smaller independents improve their operation.
"As long as we don’t give away any proprietary information, the marketing ideas, product mixes, and schematics that are working in the larger chains may work in the smaller ones as well," DeMott explained. "They can adapt them to their own circumstances."
The smaller guys often just use the schematics suggested by their largest suppliers. They are often family-based operations whose owners have a vested interest in seeing the business thrive, so they are more sensitive to what’s happening in the marketplace.
"This is the most fun part of the business," DeMott said. "We can use our creativity, we work with all sizes of chains and stores, and with a variety of people. We can really make a difference."
What’s Ahead?
Responding to a growing trend, TNT Marketing is expanding its foodservice offerings. It has brought in experts to get a better handle on the category. Foodservice in c-stores is slightly different than that in grocery stores, focusing on sandwiches, biscuits and sausage, and other hand-held items designed for immediate consumption.
The approach to foodservice varies. For some c-stores, foodservice is primarily aimed at impulse buying. Customers see a hot dog and get a sudden craving for one. Some c-store chains are attempting to position themselves as a foodservice destination, where local workers can dash in for breakfast or lunch. Some have affiliated themselves with fast food chains such as Taco Bell, with mixed success. Other c-store chains are developing their own specialties in foodservice. Whatever the approach, foodservice is an important part of business overall, said DeMott.
While adapting their business to capitalize on emerging trends and new developments in c-stores, TNT Marketing adheres to the basic plan that has made them a success: Grow and stay alive and compete in this marketplace. Keep going in the right direction. Stay the course.
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