September 2016 Please contact your Shopper Marketing Manager for questions Shopper Marketing Strategy Guidelines Shopper Marketing Team & Communication Tier 1 Customers Activation Guidelines Menu Plus & Menu Only Customers Activation Guidelines Offer & Redemption Guidelines New Item Support Guidelines Incremental Opportunity Process SM Compliance 2 Contents Shopper Strategy Guidelines Shopper Marketing Planning Process 4 Review Brand & Trade Objectives. Targets & Plans Review Insights (Consumer & Shopper) Align Customer Segmentation with Trade Define Calendar & Channel positioning Define Brand Retail Strategy Build Activation Architecture by Channel Identify Partnerships (regional) Develop Customer Activation Calendar (SM & Trade) Develop P2P Shopper Plans (incl. Menu) Sell-In Presentations to Sales Finalize Presentations for Customer Alignment Implement & Measure via Total Return Model Go-to-Market Strategy Framework Strategic Foundation Activation Plan, Sell-in & Measurement Amplify Brand Initiatives Deliver Unique Overlays Ground-Up Platforms Enhance Customer Initiatives Amplify Trade Events Shopper Planning Pillars Plans and Activation must Leverage a Combination of These Strategies! Measurable Activation via Total Return Model* TOTAL RETURN Return on Investment Return on Engagement Return on Relationship * Includes the necessary audit to confirm executional details of each approved program funded by SM Best-In-Class Shopper Organization that Drives Incremental Customer Support Ragu Consumer Strategy Bertolli Consumer Strategy Shopper Marketing is the Connective Tissue that Enables the Strategic Alignment between Brand and Customer BRAND Marketing Sales Category Customer Sigrid Garavito SMM & INtegrated Team SHOPPER MARKETING INSIGHTS Best-in-Class Shopper Marketing Principles 8 Insight-Based Brand Equity Building Innovative & Integrated Activation Customer & Brand Objectives Synergy Measureable Secures Customer Incremental Support Guiding Shopper Funding Principles Funds are consumer-focused (driving secondary display, trial and building brand equity with our identified targets) Funds are performance based. Program needs to deliver measurable results (increased display ACV, increased share and incremental sales) and drive sustainable profitable growth Funds are strategically-allocated through the planning process based on R&B Foods SM pillars o Secondary variables: openness/capability to execute Shopper Marketing, quality of partnership, strategic importance to key demographics and gap to fair share Funds will support programs that achieve secondary display, brand equity and trial 9 How to Foster Tangible Results with Shopper Build higher-level and deeper relationships with retail partners o Create deep engagement between SMM & key customer leads Drive Value Beyond Price o Push for creative solutions beyond price & premium ASM programs o Proactively work closely with SM to develop a unique solution Help retailers build categories, baskets and trips o Help SMM & CMM develop a category solution that could set R&B apart from all CPG companies o Example -. how do we leverage the sea of red to our advantage and create a leadership position Garner deep insight into shopping segments and behavior Develop deep understanding of channel and category drivers o Leverage our category and shopper study insights for activation ideas beyond ASM programming 10 Shopper Team (Who to Contact & For What) Shopper Field Expert Support Team! Tier 1 Field Team Strateg y & Analyti cs Team Sophie Taczynski Jeremy De Wulf WM, Sams Club, Costco, BJs Katie Atkins WM, Sams Club, Costco, BJs Jeannie Sexton Target, Meijer Jocelyn Chiurco Kroger Reva Sydow Albertsons Safeway, HEB Susan Pence Ahold Publix Emaleigh Dudley Program Execution Diana Keller Family Dollar, Dollar General Danny Bowers Program Execution David Adams MENU Operations Sherif Fahmy Insights & Analytics Sarah Farrington Menu + Menu Only Menu+& Menu Leads Shopper Marketing Manager The Shopper Marketing Headquarter Team will facilitate Defines annual initiatives, direction, briefs, reviews & approves plans Drives shopper insights, measurement model and analytics with IN Planning team Owns Shopper Marketing Budget, designates all shifts and allocations Evaluates and approves all Incremental Opportunities Represents Shopper Marketing during key retailers marketing/planning meetings Ensure the link between Brand & Trade initiatives, including SM role with launches Develop Shopper Marketing Guidelines, protocols and processes Owns SOW and relationship with Shopper Agency of Record Reviews and approves SM creative & post analytics for all programs Approves R&B payment of all Shopper Marketing invoices Shopper Marketing Manager: Sigrid Garavito HQ Lead: Sophie Taczynski Insights & Analytics Sherif Fahmy If Sigrid is unavailable, please reach out to HQ lead Oversee SM planning, execution, reconciliation, and program analysis Manage the Shopper Marketing Budget. Deliver monthly reporting. Partake in all IAT meetings to facilitate the link between brand & Shopper Marketing. Update and share out brand information across SM field team Facilitate a seamless link between CP and Shopper Marketing to avoid overlap and stacking Assist with partnership conversations Work with CET team to deliver insights and strategy for development of Tier 1 plans Facilitate analytics & measurement of the preselected SM programs through the Measurement Model SHOPPER FIELD TEAM WalmartJeremy De Wulf Sams Club, BJs, Costco Jeremy De Wulf KrogerJocelyn Chiurco AholdSusan Pence PublixSusan Pence Dollar General, Family Dollar Diana Keller Albertsons/ Safeway Reva Sydow HEBReva Sydow TargetJeannie Sexton MeijerJeannie Sexton Menu Plus & Menu Only Sarah Farrington & David Adams Execution supported by Danny Bowers, Emaleigh Dudley, Kate Akins Your Designated SM-field Expert will own Shopper Marketing Strategy, Planning, and/or execution Execution including creative development, timelines, production, deliver SM program sell-in presentation (where applicable) Facilitate communication between Shopper Manager, retailers marketing team,creative and insights/analytics teams Compliance Shopper Marketing Guidelines Budget oversight & monthly reconciliation Recaps, assist with Post Promotion Analysis for selected programs Filter incremental opportunity SM Request Forms with SMM Ways of Working: Sales Team & Shopper Field Team Leads Ongoing RSM Meetings Weekly R&B RSM and SM Field Lead meetings SM Field Team Lead will send recap notes to RSM & Sigrid within 24hrs Broker Communications Brokers included in weekly RSM/SM Field Lead calls SM Field Lead to reach out to brokers for all customer specific information including but not limited to: - SKU info - Trade Activity - Price Promos Program Development SM Field Lead to work with RSMs on initial stage of program development Plans to be approved by Sigrid prior to being shared with RSM. Then, move to retailer presentation. RSMs and SM Lead revise/finalize as needed based on retailer feedback/requests Final plans with budgets to be approved by Sigrid and handed off to SM Lead for execution Retailer Communication Retailer presentations led by RSM, with IN CET support IN CET team to lead all communication as it relates to execution, with RSM/broker support, as needed Approval & Management Process 16 Retailer Specific Category Solution Non-Retailer Specific Category Solution Brand Specific Activation Request through Sales (from Customer) Brand Specific Activation Request through Brand Program Type RSM/Broker BRAND or RSM RSMBRAND Who Receives the Request? Who leads the request (owns & manages)? SMM Who has input? SMM,Category & Customer Mgr R&B IN IN Lead Insights & IN Lead IN Lead IN Customer, Insights, Creative, Concepting SMM, Category Mgr & Brand SMM & Brand IN Customer, Insights, Creative, Concepting SMM & Brand R&B IN Who manages execution? Who approves program? R&B IN SMM IN CUSTOMER LEAD R&B IN SMM (oversight) IN CUSTOMER LEAD Tier 1 Customers - Shopper Activation Guidelines Objectives of Account-Specific Marketing (ASM)* Premium-priced customer event that may include multiple suppliers and customer- branded shopper touch points Drive supplier participation in key customer-specific drive periods or marketing initiatives to drive trips and basket size to store Sometimes may promote cross-category conversion and merchandising Costs for participating are shared between SM and trade * All programs must be within R&B Shopper Marketing Guidelines Shopper Marketing vs. ASM Programs ProgramPrimary FocusSecondary FocusFunds Shopper MarketingInsight-based integrated plans with Pre- shop, Shop & Post-shop activation driving brand equity & trial during key brand drive period Volume (Secondary Display Placement) Shopper-funded (including redemption) Account-Specific Marketing (ASM)* Customer-driven programs to drive trips and basket size such as Publixs Aprons, HEBs My Magazine, Targets Recipe Portal, Krogers Mailers, Secondary Display, Volume & Brand Equity Shopper-funded (does not include redemption) 18 Objectives of Trade Generate off-shelf secondary display placement Price discounts Feature support using promotional allowances (O.I., BB, Scan, Fixed Ad Fees) Shopper Marketing vs. Trade FOR INTERNAL PURPOSES ONLY 19 ProgramPrimary FocusSecondary FocusFunds Shopper MarketingInsight-based integrated plans with Pre- shop, Shop & Post-shop activation driving brand equity & trial during key brand drive period Volume (Secondary Display Placement) Shopper-funded (including redemption) Trade EventsDrive ongoing sales tie to price discounts on-shelf or trade promotions via secondary placement instore) TPRs Events (Italian Days, Megas, Combo Locos) Customer Mailer (by invitation) such as Ahold CSM mailers Feature and Display programs Secondary Display and/or Volume Trade-funded (including redemption Menu Plus & Menu Only Customers - Shopper Activation Guidelines Menu Plus Customers vs. Menu Only Customers* 21 Customer Type SM Support DetailsSM Field LeadCustomer List Menu Plus60% budget to be leveraged via Menu platform and pre- approved offers 40% budget to be leveraged via customer trade/marketing programming Any BG outside of pre- approved Menu platform must follow BG requirements (slide 25) Limited resizing of menu elements for customer events Sarah FarringtonAWG SuperValu Unified Winco Hyvee Raleys Starter Brothers Smart & Final Grocery Supply/Fiesta Roundys Menu OnlyDesignated by VP specific budget Entire budget can only be leverage via Menu platform (including pre-approved offers) Platform Only Sarah Farrington David Adams All Other Customers Not Listed Above (budget by customer details pending between SMM & appropriate VP) Wakefern Delhaize Giant Eagle Bilo/WD Price Chopper Krasdale Jetro Wegmans Harris Teeter AG Florida *NOTE: Menu Plus & Menu Only programming will be tracked and reconciled monthly via SM 2016 Menu Tracker managed by Sarah Farrington Menu Plus Customers vs. Menu Only Customers Budget Tracking Process 22 Overall Process Programming must be tracked montly via 2016 SM Tracker (to be provided in Menu Worksession Mid-September) Menu Tracker will have specific areas designated for updates. No other areas are to be edited/deleted as it will created issues with worksheet links and formulas within and outside workbook Should you identify a new Menu tactical element that can be leveraged across multiple customers more than once, please direct this ideas to SM lead in order to continue to optimize offerings Any shifts of budgets between customers must be communicated via VP to SMM and SMM will provided final direction and have it captured in Menu Tracker Menu Plus Customers vs. Menu Only Customers Budget Tracking Process 23 Menu Plus Customer Budgets have a required 60/40 split between Menu Platform and Customer- driven initiatives When planning with key SM lead (Sarah Farrington), you must identify the above allocation within tracker. This will insure proper Menu budget is programmed for your tracking purposes via Menu platform when ordering Should there be a significant overspend on customer-driven initiatives than above allocation, marketing will reduce total budget by second half or reduction into following years total budget will occur Menu Only Customers Monthly reporting on programming and estimated/actual costs via 2016 SM Menu Tracker Budget must be spent entirely via Menu Platform Offer & Redemption Guidelines Buy/Get Offer Requirements To secure SM funding the following requirements must be met 1.Menu Platform is the Primary Resource to secure Buy/Get offers or reference to what these are required to be 2.Get offer must be a food/beverage offer thereby providing a meal solution (a Buy X, Get $1 Savings, Rewards on Gasoline, next shopping trip will not be approved for SM funds) 3.R&B will ONLY cover the fair share cost of the participating partner costs within get offer (i.e. Buy 2 Ragu Get Free Pasta R&B will only cover fair share cost of that pasta unit, not entire unit) 4.If BG offer will be in Feature/Display program, the cost/fee for participating in this program will funded by trade 5.Coupons or Rebates redemption will be covered by trade funds (coupon production and handling will be covered by SM) 25 Accounting Treatment Above The Line* Trade Expenses within Net Sales/Above-the-Line All redemption scenarios, including: o Coupons o All coupon-insertion costs (costs to participate in coupo program) o Buy/Get Offers (dollars or partner units) Customer Deductions will got through trade pro platform and SMM will be the approver fro all SM deductions placed in system SM Payment for participation in customer programs with Tier 1 customers MUST be secured via SM Field Team & NOT processed via tradepro as these are NOT Above-the-line o Examples: DVM, Aprons, Fight for Hunger, Meal Solutions, Ready for You *Work with your Shopper Marketing Lead to ascertain annual above/below the line spending parameters ascertain annual above/below the line spending parameters 26 Accounting Treatment Below The Line* Expenses that are part of Below-the-Line (NIP) ASM participation fees (i.e. Aprons, magazine Ios, DVMs, etc.) Sampling/Demos Event marketing (e.g. event signage, sponsorship, media) Agency fees Creative for any direct-mail pieces Menu Toolkit development and monthly management fees Production of any Menu Toolkit elements Coupon prints and handling costs (not including redemption) Redemption Not tied to a coupon will be paid out of trade *Work with your Shopper Marketing Lead to ascertain annual above/below the line spending parameters 27 New Item SM Support Guidelines Shopper Role with New Item Launches Shopper Role with Tier 1 Customers : Create awareness of new item with Key Customer Development of actual support will required the following items prior to SM recommendations 1.National Consumer Promotions and Trade Support plans finalized and shared 2.New Item Sales Sheet and consumer target details 3.New Items Assets (logos, packaging, claim or copy content language) 4.Both Confirmed Ship Date and Instore Date from Key Customer 5.Confirmation of which items will be instore in Key Customer 29 Shopper Support Reference for New Item Launches Due to short-lead time between ready-to-ship date and instore customer commitment, SMs role will be to 1.Drive awareness to new item, national CP and/or Trade Promotion instore 2.Not fund any additional couponing during launch. Trial via discount will be CPs objective (this will also avoid stacking of discounts or create errors in CPs trial and repeat analysis) 3.Leverage customer-specific digital and social tactics 4.Fund limited demos with Tier 1 customer (only key stores where new items shopper likely to shop). 5.SM support of Menu Plus and Menu Only Customers will come ONLY via Menu platform. Menu platform will be leverage to facilitated the delivery of general assets created by brand (funding of these materials and any coupons will come from sales slotting budgets) 30 Incremental Opportunity Process Evaluation & Approval Process Incremental Opportunity Consideration Process Should opportunities arise above what has been planned for the year, to initiate process, RSM will need to provide: SM Request Form and submit to SM Field lead and VP/Director for discussion Must provide a minimum of 1-2 week lead time o Request will be evaluated against national, SM and other variables o SMM will discuss opportunity with VP o SMM will provide written final feedback with detailed aligned solution (if necessary) Only after SM written approval has been provided, can sales commit to customer 32 Compliance Process SM will leverage the following resources to insure compliance to SM guidelines: o Regional IN leads o Nielsen Display ACV (off-shelf secondary placement) o Advantage and Retail teams o Menu Plus & Menu Only Tracker Any discrepancy between approved and executed programming may lead to reduction of SM support ALL SM budgetary shift considerations or programming where SM funds will be used for payment, must be approved by SMM and therefore must be submitted to SMM via SM Field Lead o Example: A Publix program was cancelled and RSM would like to leverage funds for a Wegmans program. The shift must be evaluated and approved in writing by SMM o Funds can be shifted to other accounts, programs or held back at SMMs discretion 34 Gracias! Thanks! Contact Sigrid Garavito Shopper Marketing Manager or your Designated IN SM Field Expert Lead for any questions 35