“ Our data shows that the stores that are currently in full brand mode have seen anywhere from a six to 12 % sales increase since introducing the branding .”
2019 BEST PRACTICES AWARDS
layouts of different stores .
Agency stores are encouraged to adopt the branding at their own expense . To date , 24 stores have incorporated some aspects of the branding , and several stores have integrated all of the branding materials into their stores . Customer response to the new branding has been positive , and the resulting effects can be seen in terms of an uptick in sales .
“ Our data shows that the stores that are currently in full brand mode have seen anywhere from a six to 12 % sales increase since introducing the branding ,” Canepa says . “ Now other agencies are clamoring to get the branding , because they see very clearly that it makes a big difference .”
The new branding has helped Ohio continue to capitalize on the bourbon craze — as has the development of new partnerships with agency stores .
In the past year , the division has expanded the number of its barrel releases , raffles and bottle lotteries . Agency stores may apply to participate . The chance to highlight an exclusive bourbon product is a coveted opportunity for any agency store , and the competition in the selection process is high .
In order to host a barrel release or raffle , agencies must be in full compliance with all OHLQ requirements , and also must submit an event plan outlining how they propose to run the event , detailing the available space they have to use , while suggesting possible entertainment options for the event to enhance customer experience .
These plans are considered by division leadership , along with
“ Our data shows that the stores that are currently in full brand mode have seen anywhere from a six to 12 % sales increase since introducing the branding .”
– JIM CANEPA , DIVISION SUPERINTENDENT
geographical store data , to select agency participants .
Many limited-release products sell out in a number of hours , with the record being eight barrels sold in 20 minutes . Agency stores are tasked with handing out tickets for the available number of bottles to help meet customer expectations .
For raffles , staff sort through entries to ensure that multiple entries are not submitted . The largest raffle to date was held at a Columbus store , where 1,200 consumers turned out for a chance to buy 84 rare bottles .
OHLQ publicizes limited releases , raffles and other events via its e-mail marketing list , which currently has more than 90,000 subscribers . The division credits its events with helping fuel Ohio ’ s double-digit growth in the American whiskey category over the past two years .
WAREHOUSE AND DISTRIBUTION Shortly after Canepa joined the division , all deliveries to agency stores transitioned to a new third-party provider , DHL Supply chain , through a JOBS contract .
This decision was based on the need to improve overall service to agency store partners , while also streamlining processes when OHLQ ’ s warehouses condensed from four to two locations .
Now , more than two years later , the impact of this change is apparent .
Both distribution centers operate at an extremely high level . DHL ’ s order fill rate is 99.9 %, and agencies receive orders on time 99.5 % of the time , and with 99.9 % accuracy . DHL also restructured the delivery process for the state . Now each agency store receives weekly deliveries on the same day and time ( previously , they received deliveries on the same day , but the time would vary ).
The new DHL partnership has also resulted in significant cost savings . In 2018 , JOBS reported nearly $ 800,000 in savings related to delivery transportation , routing and trailer optimization , number and type of equipment used , and directed fueling , which directs DHL drivers to the lowest cost diesel fueling station along their routes . Additionally , nearly $ 650,000 in savings resulted from new inventory management operations , specifically due to reduced inventory loss and damage .
Necessity is the mother of invention . With a large stock of slow-moving and discontinued items , Canepa and his team created a Last Call store , which began as a pilot pop-up store in Columbus late in 2018 . The goal was to offer a selection of 2,500 delisted products at a discounted rate over a two-week period . Consumer response was beyond anyone ’ s expectations .
“ It was like Black Friday every single day ,” Canepa recalls . “ We sold out of what we thought would be our entire stock in half a day . We had to keep calling the warehouse to bring in additional product .”
Ultimately , OHLQ generated $ 350,000 in revenue during
12 StateWays | www . stateways . com | September / October 2019