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RDD Associate Learning AcademyEnterprise-wide Training, Education & Associate-development

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Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

What is RDD’s ASSOCIATE LEARNING ACADEMY?

An enterprise-wide training, education & associate -development process, that:

For every RDD position, identifies core skills, business processes / protocols, technology enablers and best business practices / solutions critical to delivering sales agency SERVICE EXCELLENCE

Provides a comprehensive portfolio of fundamental and advanced training/education modules facilitating associate development and building organizational capacity and performance

RDD Associates Core Leadership Strategy

Enterprise Sustainability - Laser focus on GROWING OUR BUSINESSES…

train, develop & reward VALUED ASSOCIATE RESOURCES… build momentum to ensure

FUTURE ENTERPRISE SUCCESS!

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

[II] Key

Elements & Topics

[III] Applications

&Utilization

[IV]Reference, Recap &

Next Steps

Shopper Data Evolution Wakefern Shopper Marketing Segments

Applications PPI Example Recap

SR Shopper Marketing Contacts Handouts Next Steps

[I]Course

Overview

Course Overview: Definition / Purpose / Rationale Consumer Retailer Environment

Key Discussion TopicsSR SHOPPER SEGMENTATION

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

THE RETAIL ENVIRONMENT IS CHANGING

• Nobody is exclusive to anymore• Consumers shop differently in each channel• SR: Need better understanding of what consumer’s needs are• SR: Aggregating data to determine what is going on

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

TIMELINE: DATA ANALYTICS

SyndicatedData

Services

Category Management

Loyalty Cards

Dig CouponsConsumer (Shopper)

Data

Mobile Apps

1980’s 1990’s 2000’s 2010’s

Dunnhumby

CCR/EYC

PPI

Kroger

Ahold

ShopRite

• Evolution of data has been S L O W• What are the needs of consumers?

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

WAKEFERN SEGMENTATIONS

• Changed from Demographic-based segmentations to behavioral segmentations

• Previous segmentation was non-additive and included the following groups:

• African American

• Baby

• Natural/Organic

• Kosher

• Hispanic

• Family

SR SHOPPER MARKETING SEGMENTS

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SR SHOPPER MARKETING SEGMENTS

The New SR Segmentation Focuses on 6 Macro and 12 Micro Segments

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

EASY MEALERS

• Where do they Shop?• Deli, Bakery, Frozen, HBC/Non Foods show highest index

• Emphasis on Foodservice, Deli Ready-Made Goods

• Busy Lifestyle• No time to cook, need something easy

• Trust the healthy meal solutions of prepackaged goods

• Think: Working Professionals• 40% EM are Generation X, 51% employed full time

• One of the higher average household incomes

• 61% have no kids, 31% have 1-2

LOOKING FOR: QUICK & EASY MEALS AND SNACKING OPTIONS

73% Female

$77,500 Avg. Household

Income

82% Caucasian

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

TOTAL STORE

• Where do they Shop?• Everywhere, but especially in the Meat Department

• Emphasis on Easy prep, meal making, and cooking

• Organized, Planning Lifestyle• Enjoys putting meals together, trying new things

• Plans trips to save money, get items at the best price

• Think: Working Parents & Retired• 26% Retired, 45% FT Employees

• 87% of oldest generation speaks Spanish at home

• 47% have children

LOOKING FOR: VALUE THAT MEETS ALL NEEDS

77% Female

$67,300 Avg. Household

Income

76% Caucasian9% Hispanic8% African American

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

CENTER STORE

• Where do they Shop?• Shops mainly center store, buying perishables elsewhere

• Emphasis on Grocery & HBC

• Can’t resist a good price…• Buys canned over fresh due to value

• Plans trips to save money, get items at the best price

• Think: Can-Can and Value Buyer• 15% Part Time, 43% Full Time

• 48% have children

• 75% of Sub-Segment purchases are online

LOOKING FOR: CENTER STORE AS WELL AS NONFOODS

74% Female

$66,000 Avg. Household

Income

73% Caucasian9% Hispanic8% African American

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SIMPLY SOURCED

• Where do they Shop?• Produce, Seafood, Deli, & Dairy

• Emphasis on seafood and organic produce, specialty cheeses

• Healthy, Active Lifestyle• Buys mostly organic and natural due to health benefits

• Sees food as fuel for a healthy lifestyle

• Think: Selective, High Quality “foodie”• 60% have No kids

• 47% full time workers, 19% retired, 10% Students

• 39% Millennials

LOOKING FOR: SIMPLE, HEALTHY, & NATURAL GOODS

72% Female

$82,700 Avg. Household

Income

72% Caucasian6% Hispanic4% African American

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RDD Associate Learning Academy

CULTURAL CUISINE

• Where do they Shop?• Meat, Seafood, and Produce

• ShopRite is their least favorite retailer (Natural, Grocery, Club)

• Inspired by Cooking…• Enjoys trying new flavors with cooking

• Cooks from scratch since it’s “better for you and tastier”

• Think: Working Parents & Retired• 34% Generation Y

• 87% of oldest generation speaks Spanish at home

• 37% have children spread across all ages

LOOKING FOR: COOKING WITH FLAVOR & ETHNIC FLAIR

68% Female

$70,400 Avg. Household

Income

74% Caucasian6% Hispanic9% African American

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

NEEDS DRIVEN

• Where do they Shop?• Frozen, Meat & Grocery

• Emphasis on Easy prep, meal making, and cooking

• Budgeted Lifestyle• Price is leading factor, looks at circulars and stretches the dollar

• Prefers heating up, no time to cook as main meal prep solutions

• Think: Fixed Income• Assistant dependent

• Largest Hispanic population of segments

• 57% have children, largest stay at home population (18%) and unemployed (28%)

LOOKING FOR: LOW COST OPTIONS TO FUEL THE FAMILY

79% Female

$32,600 Avg. Household

Income

50% Caucasian30% Hispanic12% African American

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SR SHOPPER MARKETING : SEGMENT SUMMARY

23% 22% 20% 15% 11% 9%20% 32% 17% 15% 8% 8%

% Shoppers

% Sales

• Behavior and attitude-driven, mutually exclusive• Appeal to shoppers through unique triggers to increase spend• Tiered level sponsorship available for manufacturer marketing programs, tailored

to segmentation of choice

EASYMEALER

TOTAL STORE

CENTERSTORE

SIMPLY SOURCED

CULTURAL CUISINE

NEED DRIVEN

Quick & Easy Solutions

Equallyshopping

total store

Predominatelyshopping center store including

Nonfoods

Simple, Natural, &

Healthy Products

Incorporatesvarious ethnic components in

cooking

Price Driven,low cost options

#2 in % Sales #1 in % Sales Average sales Average Sales Lower Sales Lower Sales

DeliMeat & Frozen

GroceryProduce &

SeafoodMeat Meat & Frozen

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SEGMENTATION APPLICATION

SR SHOPPER MARKETING SEGMENTS

• EACH SEGMENTATION HAS YEARLY PROGRAMS THAT CAN INCLUDE:• Circular presence (chain-wide and swing pages)• Valpak• MY ShopRite Personalized Offer Event• E-Targeted Offers• New Item Launch• Demos• Social Media

• 2015 MONTHLY EVENTS ALLOW FOR TOTAL MARKETING SUPPORT AND FLEXIBLE PLANNING FOR SEASONAL PRODUCTS/OFFERINGS

• PROGRAM COSTS CAN VARY BY SEGMENT AND OFFERINGS• Range from $7,500-$80,000 yearly participation costs

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SAPUTO EXAMPLE: SIMPLY SOURCED

Friendship Cottage Cheese 16 ozBronze Program: 2014

• 8 additional ads (in Simply Sourced section)• April: Digital display, email, 55 cent dig coupon • May: Demos in 148 stores with a recipe handout• Targeted digital ads (on Daily Parent & Recipe Land websites)• July: Valpak offering (650K mailing recipients) & $1 digital coupon• August: Digital display, email, 70 cent digital coupon• October: Targeted digital campaign

Unit sales saw an increase of +4.9% in a declining category

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

ShopRite Marketing SegmentsSummary for Almond Breeze

Source: Wakefern PPI 52 Weeks Ending Sep 27, 2014

Almond Breeze has an 11.5% penetration rate among all SR Price Plus Consumers (7.7MM SR PPC/0.5MM ALB PPC)

AB Brand has the highest segment penetration within the Simply Sourced Moderate Group (12.8%), followed by Center Store Online (11.1%), Total Store Meal Maker (11.0%) and Simply Sourced Committed (7.6%)

AB purchase sizes are highest among the Center Store Online group ($17.69 spent/yr), followed by Simply Sourced Committed ($17.72 spent/yr) and Simply Sourced Moderate ($17.20 spent/yr)

ShopRite Marketing Segment

Center

Store Baby

Center

Store

Nonedible

Center

Store

Online

Cultural

Cuisine

Easy

Mealer

Aging

Easy

Mealer

Ready

Made

Need

Driven

Baby

Need

Driven

Economic

Eats

Simply

Sourced

Committed

Simply

Sourced

Moderate

Total

Store

Easy Prep

Total

Store

Meal

Maker

Total

Store

Ready

Made

PPC's in Segment 111,022 1,255,650 50,502 775,902 1,054,068 644,382 61,884 544,182 442,269 576,170 661,849 477,216 449,386

Buyers (bought Milk) 65,924 636,274 35,269 371,250 628,795 317,612 27,292 283,101 216,100 424,213 418,918 359,261 305,337

PPC's who buy Alm Breeze 7,187 63,154 5,599 34,548 79,517 32,414 2,332 28,968 33,579 73,794 39,727 52,694 30,279

% Segment PPC's who bought AB 6.5 5.0 11.1 4.5 7.5 5.0 3.8 5.3 7.6 12.8 6.0 11.0 6.7

Units per PPC/year 4.1 3.3 4.6 3.1 4.1 3.3 3.2 3.1 4.6 4.4 3.0 3.8 3.1

Dollars per PPC/year 16.46$ 12.66$ 17.69$ 11.87$ 15.82$ 12.79$ 13.09$ 12.23$ 17.72$ 17.20$ 11.76$ 14.52$ 11.91$

Total SR PPC's 7,677,601

Total SR PPC's purhased Milk 4,208,297

Total SR PPC's purchased A Breeze 483,792

SEGMENT DATA FROM PPI

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SR SHOPPER MARKETING SEGMENTS

Relevant Segments byRDD Client

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

SR SHOPPER MARKETING CONTACTS

Carol Heyducek: Simply Sourced & Cultural Cuisine

Deirdre McKee: Total Store & Need Driven

Jeanette Burgos: Easy Mealers

Shivani Shah: Center Store

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

Moving ahead…SR SHOPPER MARKETING implementation

By 5/25/15

Speak with your clients

and determine which

Program(s)

fits your brands’ goals and objectives

Expanding Skills – Leveraging Thought Leadership – Sharing Best Practices – Building Performance

RDD Associate Learning Academy

Any Questions, Comments or Ideas?

Thank you for your participation!!!

Moving ahead…SR SHOPPER MARKETING implementation