marketing research event february 2007 speech 020207a
TRANSCRIPT
the ultimate depiction of innovative achievement
meets multiple consumer needs and desires
makes life easy
fresh, delicious meals
saves time
food loving households
top 3 benefits sought
our core consumers’ demands
great taste wholesome
goodness
quick but loving
preparation
Food Loving Households Account for lot of Sara Lee
Volume
Percent of Total Households
Share of Sara Lee Volume1
Share ofSara Lee Bulk
Deli Meat Volume
Share ofSara Lee
Dessert Volume
Share ofSara Lee
Bread Volume2
Food Loving Households Share of Sara Lee Volume
Food Loving Households
Volume Index:
289 271 317 274
Sara Lee Can Provide Our Target the Support They Need and Still
Allow Them to Have the Role They Desire
Finished the Right Way for My Family,in My Kitchen
“I’d love a head start, as long as I know no shortcuts were taken”
Started By Sara Lee,in Her Kitchen√
Key Opportunity with the Food Loving HH
The Right Ingredients
The Right Cooking/Prep
The Right Finishes
“We”(My Family and
I enjoy them)
“You”(You provide me the basics)
“Me”(I prepare them)
The Desired
Meal and Experience
“The Right Way” to Provide Food For My Family
white bread lifecycle
Oblivious Pick Your
Battles
Unapologetic
Users
Reluctant Adjusting Fully
Reformed
Reformed
Users
mining category insights
we knew it was a big idea
• Nutritional trends
• Consumer research
• Competitor research
• Sara Lee strategy
the next “sliced bread”
the nation’s #1 branded bread SKU
Dollar Sales ($ Million)
Source: IRI Grocery, Total U.S. Grocery, 12 weeks ending 12/25/2005.
$17.0
$12.5
Nature's Own®
Honey Wheat
20 oz
Sara Lee® Soft
& Smooth™
Whole Grain
White 20 oz#1
this bread makes serious dough
Sara Lee drove a $10M improvement in category sales
the whole category is rising
5 year Category
CAGR
0.8%
FRESH BREAD & ROLLS - CATGEORY VS. SARA LEE BRANDED
7,400,000,000
7,600,000,000
7,800,000,000
8,000,000,000
8,200,000,000
8,400,000,000
8,600,000,000
8,800,000,000
9,000,000,000
CY 2001 ending Dec 30, 2001 CY 2002 ending Dec 29, 2002 CY 2003 ending Dec 28, 2003 CY 2004 ending Dec 26, 2004 CY 2005 ending Dec 25, 2005 CY 2006 ending Dec 24, 2006
TIME PERIOD
$ S
AL
ES
CTG - FRESH BREAD & ROLLS SARA LEE BRANDED FRESH BREAD & ROLLS
5 year Sara Lee
CAGR
44.5%
Source: IRI Grocery, Sara Lee U.S. Fresh Bakery Distribution Area
65.4%
9.8%
24.8%
Soft and Smooth % Total Volume
Incremental
Volume (75.2%)
Cannibalized
Volume (24.8%)
Category Expansion
All Other Brand
Switching
Source: IRI Total US All Outlets Data -18 Weeks Ending 11/06/05 vs. 18 Weeks Ending 7/03/05
the whole category is rising
almost 10% category expansion
breakfast lovers
a deep understanding of core consumers
“real” breakfast
Is hot with meat
I have less time
than ever
spots spur volume spikes
Skillets Media Effectiveness
Base LB Turns per Point of ACV
0
200
400
600
800
1000
1200
Apr 3
, 200
5
Apr 1
7, 2
005
May
1, 2
005
May
15,
2005
May
29,
2005
Jun
12, 2
005
Jun
26, 2
005
Jul 1
0, 2
005
Jul 2
4, 2
005
Aug
7, 2
005
Aug 2
1, 2
005
Sep
4, 2
005
Sep 1
8, 2
005
Oct 2
, 200
5
Oct 1
6, 2
005
Oct 3
0, 2
005
Nov
13,
200
5
Nov
27,
200
5
Dec
11,
200
5
Dec
25,
200
5
Jan
8, 2
006
Jan
22, 2
006
Feb
5, 2
006
Feb 1
9, 2
006
Mar
5, 2
006
Mar
19,
200
6
Apr 2
, 200
6
Apr 1
6, 2
006
Apr 3
0, 2
006
May
14,
2006
May
28,
2006
Jun
11, 2
006
Jun
25, 2
006
Base L
b T
urn
s /
AC
V
1/2 Weight Media Base Lbs./ACV
FSI Drop
1.3 Jimmy Dean Advertising Driving Skillets’ Success
Full Weight Media
Jimmy Dean advertising drives Skillets success
Happy Breakfast Tour – Event Sampling
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
St.
Loui
s - F
ores
t Par
k
Des
Moine
s - H
ot A
ir Ballo
on
KC- C
ity M
arke
t
Chica
go -
Nav
y Pie
r
Cincy
- Ta
ll Sta
cks/
New
port
DC - W
ash
Red
skins
Gam
e
Richm
ond
- M
all
Roa
noke
- M
all
Cha
rlotte
- Fes
tival
/Sho
w
Raleigh
- Far
mer
s' M
kt
Kno
xville
- Sam
's C
lub
Nas
hville
- W
al*M
art
Mem
phis -
Bas
ketb
all G
ame
# S
am
ple
s
Event Samples
• Went to 13 markets and 20 event days!
• Total Tour Attendees: 26,093
• Delivered over 53,400 JD Sandwiches!
NOTE: For events through 11/12/06
ROP Support
• Distributed in local “Events/Weekend” section of the paper
• Nearly 5.6MM circulation to-date
PR Buzz
• Local newspaper segments!
September 29, 2006 Circulation: N/A
Jimmy Dean's "Happy Breakfast"
Tour will stop at Navy Pier from 9
a.m. to noon Saturday and Sunday
to find the most inspiring
Chicagoan. Video booths will be set
up where people can nominate
someone that has improved their
life. Winning nominators and
nominees will win goodies.
Online
• Launched www.HappyBreakfast.com, Sept
2006
• Interactive, with lots of information
• Online coupon
• Research survey
– Which event did they attend?
– Opinion of the tour?
– What did they like most about the tour?
– Did they purchase JD products?
– Before/After attending tour, what was
their opinion of the brand?
Over 700 consumers completed the survey, to-date!
Online
• View amazing stories on
www.happybreakfast.com
• 734 video nominations
created!
-14%
-5%
Jimmy Dean is the fastest growing handheld breakfast
Dollar Sales
Current 12 w/e Nov 12, 2006 - Total US - Grocery
33,980,100
10,616,260
JD HH
HT PKTS HH
Source: IRI, Total US Food, 12 WE 11/12/06
hot results fast
Brand Position
…but more importantly driving category results
Source: IRI, Total U.S. – F/D/MM x WM Last 52 Weeks Ending 12/17/06
(1) IRI, Total U.S. – F/D/MM x WM, CY 2004, CY 2005, CY 2006
#1 #1 #1 #1 #2 #1 #1
0% 0%
44% 35%
17%
5% 5%
-5%
0%
5%
10%
15%
20%
Fresh Buns
& Rolls
Fresh
Bread
Bacon Cocktail
Links
Main.
Lunch Meat
Protein
Breakfast
Smoked
Sausage
Sara Lee Growth
Category Growth
N/AN/A
$700MM in
annual sales
from new
products
launches1
43%
…but more importantly driving category results
English Muffins
Soft & Smooth Whole
Grain White Bread
Soft & Smooth Whole
Grain White Buns
Breakfast Sandwich
Breakfast Bread
Skillets
…Through New Consumer Consumption
35%
12%
11%
10%
10%Brand Switching1 Churn
% of Product Volume from New
Consumers or Increases in Existing
Consumers’ Consumption
a good day starts with a good breakfast
Jimmy Dean is just getting started
$1.3 billion market for frozen breakfast food