A FOCUS ON PRODUCTIVITY

Dan Alaimo

COLORADO SPRINGS, Colo. -- In a time of industry consolidation and impersonal electronic communication, a 32-year-old method of conducting business meetings is attracting many new enthusiasts.

The eight- and 16-minute Controlled Casual Conferences go off like clockwork during the two annual marketing conferences put on by the General Merchandise Distributors Council here. The events bring buyers and suppliers into a non-adversarial, relationship-building environment that fulfills the group's promotional slogan, "The most productive workdays of the year," agreed many participants interviewed at the meetings by SN.

Now, with an infusion of technology to help with preparation and follow-up, and a change in policy that has the organization paying for the travel expenses of retail and wholesale participants, GMDC was one of the only trade groups to see increased attendance at its 2002 meetings. For example, retailer and wholesaler attendance at the 2002 GM conference was up 45%, while the HBC conference saw a 27% increase.

The next General Merchandise Marketing Conference is May 30 to June 3 in San Diego, with the theme, "A Celebration of Free Enterprise." The next Health and Beauty Care Marketing Conference is scheduled for Sept. 5 to 9 in Palm Desert, Calif.

Meanwhile, the GMDC Educational Foundation, based in New York, consistently provides a wide range of groundbreaking studies, contributing to its members' profitability and the association's reputation for industry leadership.

But the entire focus of the group -- one that sets it apart from many other organizations and trade events -- is on productivity and listening to its members as they take an active role in guiding GMDC's direction, said Dave McConnell, president and chief executive officer. Retailers, wholesalers and manufacturers share in the process. For example, in a recent decision, GMDC decided to trim a day from its fall HBC conference.

"Whether we're talking about the creation of our new wholesale/retail registration package in 2002, the shortening of our HBC conference by one day in 2003, or the development of new Educational Foundation studies, the programs evolve in a collaborative fashion involving both sides of the partnership," McConnell said.

"I believe we will continue to see growth in spite of continued consolidation in both retail and consumer packaged goods businesses because we are focused on getting down to business," he said. "It's no marketing ploy when we bill our conferences as the most productive workdays of the year. That's what our members are telling us," McConnell said.

"The essence of general merchandise and health and beauty care conferences brings together the retailer, wholesaler and supplier partners at a neutral ground that creates the best sharing environment to answer the needs of all parties concerned," said Bill Mansfield, vice president, general merchandise, Marsh Supermarkets, Indianapolis. Mansfield is currently GMDC's chairman of board.

"GMDC has always been recognized and set apart by the high productivity of its marketing conferences," said Rick Tilton, GMDC's president emeritus and currently an industry consultant with such clients as Source Interlink Cos., Bonita Springs, Fla., and F&M Merchant Group, Lewisville, Texas. "Because of the combination of strong staff and a very committed volunteer leadership, GMDC's strategic planning process is a catalyst for change," he said.

Expanding the membership to include other retail channels -- such as drug, value and mass merchandisers -- and changing the policy to pay the expenses of retail and wholesale participants have increased participation and critical mass. "From the suppliers' standpoint, it provides them with a broader scope of the general market," said Jerry Barnes, vice president, member services.

An increased number of buyers makes the event more attractive to vendors, which in turn makes the conferences more productive for the retailers and wholesalers.

"We get high-level, top-to-top people," he said. "The decision makers are present. That gives retailers a great opportunity to see small, medium and large vendors in a controlled setting that allows them to not only continue developing their business, but also to see if there is potential business to be had," he said.

"Whenever you can bring an entire industry together in one place, you're bound to attract the top executives from both sides of the trading table," McConnell said.

Retailers have many choices when it comes to trade shows and other industry events, said Gary Crawford, director of nonfoods, United Supermarkets, Lubbock, Texas. "For us, GMDC is the most productive conference we attend because it provides us with the opportunity to have as many as 238 appointments with key vendors and key management personnel from those vendors -- in other words, top-to-top meetings. The result of those meetings always has a positive impact on our business," he said.

GMDC conferences are hard work, with the retailers meeting with vendors almost constantly from 7:30 a.m. to 5:30 p.m., Crawford said. "They are very, very productive days for us. Whenever we come back from GMDC, we always have new vendors that we are going to partner with," he said.

The CCC meeting format is long enough to be effective, yet short enough to be efficient. "It is a real focused meeting," Crawford said. "We preview information before we get there and so have the manufacturers that we meet with, so we can get right to the point. If there are issues, we can discuss them. If there is a new product, we can discuss it. We can make some pretty good decisions right then," he said.

"The GMDC conferences are not a vacation from the office," said George Fiscus, who until recently was vice president of general merchandise at Bashas', Chandler, Ariz. "It is an intense schedule of sharing and learning, of review and growth. It is an opportunity to share an amazing amount of knowledge and opportunity in just a few days."

For drug chains, like May's Drug Stores, Tulsa, Okla., the HBC conference is useful in spending quality time with vendors who are often busy at other drug store events, said Bob Berman, vice president, buying and merchandising. But May's is trying to build up its GM presentation, and the GM conference brings the retailer in contact with many new vendors. "Ninety percent of the GM suppliers are not at other meetings I attend," Berman said.

With GMDC now paying expenses for retailers and wholesalers, it is easier to justify bringing more buyers, which May's is doing at the GM conference. "We are bringing three people compared to last year when we brought two, so the buyers can develop relationships with vendors in their categories," Berman said.

Based in Tulsa and with 39 stores, Berman is finding it increasingly difficult to get time in front of manufacturer executives. "In doing business today, much of that personal touch is lost. A lot of business is done through the Internet and over the telephone, so any chance you have to build a relationship with a vendor pays off," he said.

"I have always found GMDC to be unique in its ability to deliver the decision makers on both sides of the desk," Fiscus said. At the next GM Marketing Conference, Fiscus will be on the other side of table in his position of director of grocery and drug sales with Delta Entertainment, Los Angeles.

"Retailers see senior executives from the manufacturer side, while the meetings deliver the retail decision makers to the suppliers. GMDC also ensures that each retailer will fill a high percentage of their appointments, allowing established and new companies to achieve the exposure they are looking for with the buyers," Fiscus said.

"I've always believed that communication resolves all problems, and communication will also uncover many opportunities," said Lou Martire, vice president, trade development, Energizer Battery Co., St. Louis. "Suppliers and retailers need a place to achieve their goals, and that's what GMDC provides."

Martire praised the quality of the GMDC staff and commented on the "family feel" of the events. "They do more than just bring the suppliers and retailers together in an event. Their conferences have a warm, fun, businesslike feel that makes the conferences extremely productive," he said.

Some have said that GMDC's members have an extraordinary amount of loyalty to the organization, "but I wouldn't necessarily call it loyalty to GMDC," Martire said. "I call it being committed to a successful program that delivers a strong return on investment in these days of budget cutbacks. A supplier and retailer/wholesaler need to justify expenses with tangible results," he said.

The GMDC conferences foster a very constructive environment, said Jeff Manning, managing partner, F&M Merchant Group, Lewisville, Texas. "The leaders of the manufacturing companies and the leaders of the retail companies can come together in a very positive environment as partners and try to make sure that the products are being marketed correctly," he said.

Those who attend GMDC find a shared sense of mission and involvement, said Jim Wisner, president, Wisner Retail Marketing, Libertyville, Ill. "What continues to be unique about GMDC is its sense of inclusiveness involving buyers, sellers and multiple trade channels in focusing on developing solutions directed at everyone's common customer. This attitude pervades every activity conducted by GMDC from the fine work of the GMDC Educational Foundation to the Controlled Casual Conference format," he said. Wisner commented on the impact of industry consolidation and reduced travel budgets, and he noted that other trade groups have had difficulty maintaining attendance at their shows. "Because of the uniqueness in the style, format and content of the GMDC marketing conferences, it is likely to be one that stands out in the future as continuing to attract participation and providing value," he said.

Particularly with the efforts of the Educational Foundation, "GMDC has provided some absolutely incredible leadership in a number of areas to help people see the potential and think outside the box," said Bill Bishop, president, Willard Bishop Consulting, Barrington, Ill. "My feeling is that in terms of breaking new ground, they have played a very unique role, served a very important need while staying on message," he said.

Meanwhile, GMDC is exploring alliances with other trade associations, McConnell said. In the past, the Food Marketing Institute, Washington, and the National Association for Retail Merchandising Services, Plover, Wis., have participated in Educational Foundation studies. At the September HBC Marketing Conference, GMDC and NARMS will pilot a cooperative effort where NARMS companies will staff a separate "Solutions/Services Forum" room located near the conference's Controlled Casual Conference floor. NARMS represents the merchandising and marketing services industry and has over 275 member companies.

A Look Back At GMDC's History

1970: First organizational and charter membership meetings held. Fran Willmes of Spartan Stores was first president. Robert Keats was first executive director.

1971: First GMDC Marketing Conference was held in Dallas. Due to lack of active participation, Controlled Casual Conference format proposed.

1972: Health and Beauty Aids Advisory Board formed.

1974: Rick Tilton succeeded Robert Keats as GMDC's executive director.

1975: GMDC slide presentation on HBA at HBA/Soft Goods-Notions Conference.

1976: GMDC's first industry survey unveiled at GM Conference.

1978: Performance Analysis Review Program initiated so members can benchmark departmental growth.

1979: GMDC headquarters moved from Dayton, Ohio, to Colorado Springs, Colo.

1981: "HBA Means Business" slide show with supplementary material introduced.

1985: Similar presentation unveiled for general merchandise.

1987: GMDC admitted direct-buying supermarket chains to membership.

1992: GMDC Educational Foundation launched. Organization expanded membership to include service merchandisers, non-direct-buying supermarket chains and club stores.

1993: GMDC Educational Foundation released landmark study on Rx-to-OTC switch products.

1999: GMDC admits drug store chains to membership.

2000: Dave McConnell succeeded Rick Tilton as president and chief executive officer. GMDC introduced CCCnet, a Web-based tool suite to maximize the effectiveness of the organization's one-on-one meetings.

2001: GMDC Educational Foundation released "Birthday/Celebration Merchandising Strategies Store Research Report" and "Women's Well-Being Merchandising Strategy Study."

2001: GMDC board decided to pay for airfare and lodging expenses for qualifying wholesale and retail companies starting with 2002 conferences.

2001: GMDC board decided to pay for airfare and lodging expenses for qualifying wholesale and retail companies starting with 2002 conferences.

2002: Following decision to pay expenses, retailer and wholesaler attendance increased 45% at GM Marketing Conference and 27% at HBC Marketing Conference.

2003: GMDC decided to pilot a special area for the National Association for Retail Merchandising Services at its September HBC Marketing Conference.