ss meal brand key times oct 2012 national

Single Serve MealsAligning Feature Events Throughout the Month

Factors to Consider When Allocating 1st Half of Month Features:

₋ Government Assistance (S.N.A.P.)

₋ Category Seasonality

₋ Distribution of Sales in Month

₋ Penetration and Size

Government Assistance (S.N.A.P.)

SNAP is key reason we see increases in grocery sales during the beginning of the month

60-80% of food stamps are depleted within the first three days of the month

Government Assistance dollars are loaded at the beginning of the month

Products show a higher percent of sales with Food Stamps during the beginning of the month.

Source: Government Assistance/Food Stamps In-Depths Fusion 4/10, Retailer SNAP tender data

1st Week 2nd Week 3rd Week 4th Week

42.4%37.4%

18.0%

9.2%

% Paid for from S.N.A.P. for a Product

Government Assistance Eligible HHs are 20% of Total HHs in the Nationally…

Percentage of HHsTotal U.S. – All Outlets

GA Eligble HH20.2%

Other HH79.8%

…and Growing:Up 1.5% vs. YAGO (Over 356K new HHs eligible for Assistance)23.9MM HH in the Nationally are Eligible for Government Assistance

23.9 MM HHs

94.4 MM HHs

Other HH-134,080

GA Eligible356,645

Total HH222,565

HH Change vs. YATotal U.S. – All Outlets

+0.2%

-0.1%+1.5%

Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)

Week 1: Re-stock• What am I out of? Status of meat?• Kid/family requests• Special splurge (steak, dessert)• Any events-holiday, birthday, Superbowl?

Week 1: The week the allotment is received is their big, pantry and freezer load shopping trip

Link Card Reloaded!

First week major shop at mainstream retailer – this receipt was four feet long!

“Usually my big trip is at the beginning of the month. Within 4 days of my card

reloading. I go and get the majority of the stuff –

canned foods, meal items like Hamburger Helper.

Anything I have used since when I shopped last. I

basically try to get as much as I can with that…. By the

second week, I’ll need to get more eggs and juice. The third week, I’ll do another semi-big shopping, but not

as big as the first time.”

Source: © 2012 Fusion Marketing Power, Inc.

Weeks 2-4: Fresh and Perishable items, special requests or new sales drive shopping behavior the rest of the month

Weeks 2-4: Filler trips Re-load staples

“I had a taste for” foodsKid needs

Convenience is a

major factor for

retailer is visited

during weeks 2-4

“Toward the end of the month to grab a couple of items because it’s closer. It’s only a couple of items, so I don’t

mind spending a couple dollars more.”

Source: © 2012 Fusion Marketing Power, Inc.

Bfst Sa...

Waffl

es

Snacks

Pies

Swt G

...

Novelties

Ice Cream

Potatoes

Meat

IQF Pou...

Pln Veg

Prp Pou...

MSM

Pizza

SSM

116

105110 111

103 102 99

108 105 102

93

108104 106

101

All Frozen Categories are Not Equal with the S.N.A.P. Shopper

o Where applicable, categories such as Prepared Poultry, Breakfast, Snacks and Potatoes should be featured in the 1st half of the month

o These over-index with the S.N.A.P. shopper

Government Assistance (S.N.A.P.) Buyer Index by Frozen CategoryTotal U.S. – All Outlets

MealsComponentsDessertsBreakfast Snacks


S.N.A.P. Shoppers Over-Index in the Economy Segments

S.N.A.P. Shopper Spend Relatively More on Economy SSM

Economy is the Most Important SSM Segment to the S.N.A.P. Eligible Shopper

Of S.N.A.P. Eligible Shoppers dollar spending is Economy Meals/Pot Pies

Economy Meals

Better for You Premium Regular

Prem Pot Pies Econ Pot Pies

127

7799 95

154


Government Assistance (S.N.A.P.) Buyer Index

35%

Dollar Sales

19% More Buyers than Edible Average for Meals

Economy Meals30%

Better for You29%

Premium Regu-lar

33%

Prem Pot Pies3%

Econ Pot Pies5%

Kid Cuisine Banquet Hungryman Michelina's Marie Callender's Stouffers Boston Mkt Lean Cuisine Healthy Choice WW Smart One's

168

145 141121

99 96 9675 74 71

Economy Brands Over-Index with S.N.A.P. Shoppers

o These Economy Brands should be featured in the first half of the Month to capture S.N.A.P. dollarso Better for You indexes poorly with the S.N.A.P. eligible shopper

Government Assistance (S.N.A.P.) Buyer Index by SSM BrandTotal U.S. – All Outlets

Economy Brands Premium Regular Better for You


Capture S.N.A.P. Dollar Sales by:

₋ Featuring categories where they over-index in the 1st half of the month

₋ These categories provide convenient products at a value price such as: ₋ Breakfast Sandwiches & Waffles₋ Economy Single and Multi Serve Meals₋ Prepared Chicken ₋ Potatoes

₋ Move Economy SSM brand features to the first 2 weeks of the month₋ All 4 brands (Banquet, Kid Cuisine, Swanson and Michelina’s) over-index

with S.N.A.P. eligible homes

Sales by Month & Week

Allocate More 1st Half Features to Categories in the Key Seasonal Months

Source: IRI 52 Current 208 Weeks Ending September 23rd, 2012 (Total U.S. - MULO)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Single Serve Meals KEY KEY KEY KEY KEY KEY

Multi-Serve Meals KEY KEY KEY KEY KEY KEY

Bread KEY KEY KEY KEY

Potatoes KEY KEY KEY KEY

Plain Vegetables KEY KEY KEY KEY KEY KEY

Prep Vegetables KEY KEY KEY KEY KEY KEY

Meat KEY KEY KEY KEY

Prep Poultry KEY KEY

IQF Poultry KEY KEY

Ice Cream KEY KEY KEY KEY

Novelties KEY KEY KEY KEY

Fz Pies KEY KEY

Sweet Goods KEY KEY KEY KEY

Cheesecakes KEY KEY

Pizza KEY KEY KEY

Snacks/Appetizers KEY KEY KEY

Bfst Sausage KEY KEY KEY KEY

Bfst Sandwiches KEY KEY KEY KEY KEY

SpringWinter Summer Fall

KEY Strong SeasonalityOff-Season Categories can go into the Back Half of the Month, if not highly driven by S.N.A.P. Shoppers

Economy & Premium Show Less Seasonality than Better for You & Pot Pies

o Jan-April is the key time for Better for You segmento Summer months are slower for all SS Meal Segments

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec80

85

90

95

100

105

110

115

120

125

130

Pot Pies Premium Regular Better for You Economy


Dollar Sales Index by MonthTotal U.S. – Multi-Outlet

Stronger 1st Half Categories Categories which can Move Features to Back Half of Month

Default to Categories with Stronger Week 1 & 2 Indexes when Determining First Half Features

111 Dollar Index = 11% more dollars than average weekly sales

o Pies (111)o Snacks (110)o Prep Chicken (109)o Bfst Sandwiches (109)o Bfst Sausage (109)o Prep Vegetables (108)o Multi-Serve Meals (107)o Pizza (106)o Single Serve Meals (105)

o Novelties (97)o Ice Cream (98)o Juice (101)o Fruit (102)o Sweet Goods (104)

Lower Index equates to more equitable distribution of dollar sales throughout the month


Premium Better for You Economy

106 105109

105

100

107

100 10097

9598

939497

94

1st 2nd 3rd 4th 5th

Economy SSM Sales Skew Toward Beginning of Month

111 Dollar Index = 11% more dollars than average weekly sales

o Better for You has the most even spread across the montho Premium Regular skews early in month, but not to the extent of

Economy

Average Dollar Sales Index by Week of MonthTotal U.S. – Multi-Outlet


Use Seasonality and Volume by Week Indexes to Make the Most of Feature Ads:

₋ Featuring categories where they over-index in the 1st half of the month

₋ Keep categories with higher sales in first 2 weeks of the month features in the 1st Half₋ Breakfast Sandwiches & Waffles₋ Economy Single and Multi Serve Meals₋ Prepared Chicken ₋ Potatoes

₋ Categories with more even sales distribution throughout month can be Featured in Back Half of Month₋ Ex: Ice Cream, Novelties, Meat, Juice, Fruit, etc…₋ These categories suffer less drop in sales in Last Half₋ Can move to 1st Half in periods of strong seasonality

% HH Penetration

Single Serve Meals Remain one of the Most Important Categories in the Frozen Department…

1. Ice Cream2. Plain Veg3. Novelties4. SS Meals

(71.4%)5. Pizza6. IQF Poultry7. Seafood

…#1 in dollars, #4 in HH Penetration and #2 in trips

Dollar Sales Trips

1. SS Meals ($5.4B)

2. Ice Cream3. Pizza4. Seafood5. IQF Poultry6. Novelties7. Prep Poultry

1. Ice Cream2. SS Meals

(682MM) 3. Plain Veg4. Novelties5. Pizza6. Breakfast Food7. IQF Poultry


Drive Better Sales by Bundling

Premium & Value BFY & Value Premium & BFY

3.15.4

18.4

4.17.2

9.3

Best in Class Worst in Class Note: Bundled events occur when sub-segments are promoted with the same vehicle during the same week within an retailer

Average # of Bundled Weeks (SSM) 1

Source: 1) IRI 52 weeks ending 01/2012 2) Kantar Retail ShopperGenetics® 52 weeks ending 09/2011

Bundle Premium & Healthy to Drive Increased Sales Velocity

Bundling encourages

Shopper to buy both segments

on one trip

Source: 1) IRI 52 weeks ending 01/2012 2) Kantar Retail ShopperGenetics® 52 weeks ending 09/2011

Frozen Meal Category Spend 1

$99

Bundling drives cross-purchase and larger basket rings (+25%), putting more money in the bank

BFY & Premium Buyer

Premium Only Buyers $45

Better for You Only Buyers $34

Potential Annual Calendar

Allocate 1st Half of Month Features to:

₋ Over-Indexing S.N.A.P. categories₋ S.N.A.P. payments are generally distributed by 15th of the month

at the latest

₋ Categories with Strong Seasonality for the Month

₋ Categories with higher percentage of dollar sales in 1st Half of the Month₋ Reserve more back half features for categories whose volume is

spread more evenly

₋ Categories with High HH Penetration and Scale

Single Serve Meal Principles:

₋ Economy brands₋ Feature in 1st half of month – strong brands for S.N.A.P. consumers₋ Feature one brand per week (2 features per month)

₋ Better for You brands₋ Feature all 3 brands in 1st half of month during Diet season (Jan-Apr)₋ One brand per week₋ Bundle with a Premium brand (ex. Marie w/ H.C., Stouffers w/ Lean Cuisine)₋ Can go to Back Half during summer months₋ Move to 1st Half November/December (Holiday categories should dominate Back

Half)

₋ Premium Regular Brands₋ Same strategy as BFY

Caveat: o SSM is an important category for the health of the Frozen Department –

BFY/Premium Features would still be better in the 1st Half all year

o Move up in month if ad space is available

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Single Serve Meal Features Should be in 1st Half of Month (January)

Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)

Bac

k H

alf o

f Mon

th:

Ice Cream Novelties

1st H

alf o

f Mon

th:

o One Economy brand should be featured each weeko Capture S.N.A.P. sales

o Better for You brand should be featured to take advantage of dieting season – all 3 brandso Bundle Premium with BFY to drive increased basket ring

o Back half of month used for out of season categories and pizza & appetizers for Super Bowl

Meat Sweet Goods & Pies

Fruit & Juices

Pizza

Snacks/Appetizers

Potatoes

Prep Chicken

Vegetables

Multi-Serve Meals

Bundle BundleEconomy

January

http://www.michelinas.com/Index.aspx


1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Same as January except Snacks Move to 1st Half of Month (February - March)


Bac

k H

alf o

f Mon

th:

Ice Cream Novelties

1st H

alf o

f Mon

th:

o Snacks & Appetizers moves up to 1st half of the montho Strong Seasonality and over-index with S.N.A.P.

Shoppero Continue to Feature Better for You to capture

dieting season – one brand per weeko Bundle with Premium

Meat Sweet Goods & Pies

Snacks/Appetizers

Pizza

Fruit & Juices

Potatoes

Prep Chicken

Vegetables

Multi-Serve Meals

Bundle BundleEconomy

FebruaryMarch



1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Pies Move to 1st Half for Easter Holiday, MSM can go to Back Half


Bac

k H

alf o

f Mon

th:

Ice Cream Novelties

1st H

alf o

f Mon

th:

o Economy brands to capture S.N.A.P. shoppers

o Dieting still a factor as weather warms – continue to feature the BFY brands

o Pies sell well against Easter holiday; while MSM sales drop off with warmer temps

Meat Multi-Serve Meals

Pizza

Fruit & Juices

Potatoes

Prep Chicken

Vegetables

Sweet Goods & Pies

Snacks/AppetizersBundle BundleEconomy

April



1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Premium & Better for You Brand Features Can Move to Back Half of Month


Bac

k H

alf o

f Mon

th:

Ice Cream Novelties

1st H

alf o

f Mon

th:

o Non-Economy SSM could move to back half as sales slow in summer monthso Due to size of SSM, one BFY & Premium bundle could

stay in 1st Half o Ice Cream, Novelties & Meat are seasonal in the

summer months – can move to 1st halfo Sweet Goods & Pies sales slow after Easter holiday

Meat

Sweet Goods & Pies

Pizza

Snacks/Appetizers

Potatoes

Prep Chicken

Vegetables

Multi-Serve Meals

Economy

Bundle Bundle

Fruit & Juices

May - August



1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Weather Changes Increase MSM Seasonality and Decrease Ice Cream & Novelties


Bac

k H

alf o

f Mon

th:

Ice Cream

Novelties

1st H

alf o

f Mon

th:

o With the onset of cooler weather, Ice Cream & Novelties are less seasonal and can move to Back Half

o Multi-Serve Meals sales spike up and should move to 1st Halfo Economy continues to be featured early to capitalize on

S.N.A.P.o BFY/Premium Regular can be in the back half or if ad space is

available the 1st Half (sales rebound from summer lows)

Meat

Sweet Goods & PiesCheesecakes

Pizza

Snacks/Appetizers

Potatoes

Prep Chicken

Vegetables

Multi-Serve Meals

Economy

Bundle Bundle

SeptemberOctober



1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

Pull SSM Features to 1st Half, Reserving Back Half for Holiday Categories


Bac

k H

alf o

f Mon

th:

Ice Cream

Novelties

1st H

alf o

f Mon

th:

o Pizza, BFY and Premium SSM should be featured in 1st half – not seasonal to Holidays

o Keep holiday categories in Back Half o Feature desserts in the back half to align with

Holiday seasonalityo Vegetables & Meat (Holiday Meals)

o Snacks & Appetizers stay in back half for New Year’s

Meat

Sweet Goods & Pies

Cheesecakes

Pizza

Snacks/Appetizers

Vegetables

Multi-Serve Meals

Economy Bundle Bundle

Potatoes

Prep Chicken

Holiday Meals

Holiday Desserts

NovemberDecember


ss meal brand key times oct 2012 national

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