The Value of Consumer

Engagement

Trade Marketing - Consumer Engagement• Value of Consumer

Engagement–Why spend time on CE training?–What does success look like?–Who is being trained?–Value of coaching CE throughout the organization

–Future of Consumer Engagement

Retail-Current State• 5 P Execution

– Presence– Pricing– Promotion– Product Availability– Personal Selling

Looking Forward

• Restrictions mean less opportunity for our 5 P’s

Inevitably our markets are

going to change

Retail-Future State

Imagine a world where….• 5 P Execution

– Presence– Pricing– Promotion– Product Availability– Personal Selling

Imagine a World Where……

As we move forward we see 2 P’s as becoming increasingly more

important• Product Availability• Personal Selling

Where Do We Go From Here?

And more importantly, How do we take advantage of the

opportunity that CHANGE provides?

Introductions•Course Structure•House Rules•Expectations

Learning Objectives

Products in Conversation

Coaching & Feedback

Role Plays

Brand Stories

Objections

Coaching & FeedbackSetting the Stage

Peer to Peer Coaching & Feedback• Giving Coaching:

– Don’t apologize – it’s a GIFT!– Talk directly to the participant– Balance strength with what they could do different– Discuss specific examples– Discuss changeable behavior– Provide examples of new behavior– Provide feedback in positive and honest manner

• Receiving Feedback:– Be open minded– Listen & don’t interrupt– Balanced listening – hear strengths!– Take notes on “ah-has!”– Practice new behavior immediately

• Time Out

Procedural Guidelines

Real World Compliance

Procedural Guidelines

R.J. Reynolds is committed to its core principle that the decision to use tobacco is one that should be made only by adults and RJRT markets its products only to tobacco

consumers who are of legal tobacco consuming age.

Each state determines the age an adult must be in order to legally purchase tobacco. However, an ATC must be

at least 21 years of age in order to participate in consumer engagement.

R.J. Reynolds Commitment

Procedural Guidelines

• If an ATC 21+ has one of the four acceptable forms of identification, that identification must be currently valid (i.e., it cannot be expired)

• In addition, the person conducting the consumer engagement with the ATC 21+ must not have any reason to doubt the authenticity or correctness of the identification

Procedural Guidelines

• R.J. Reynolds accepts only valid government-issued identifications that contain a name, date of birth/age, and photograph

Proper Identification

Only the following forms of Identification may be accepted

- U.S. state-issued driver’s license- U.S. state-issued ID card - Native American Reservation ID Card- U.S. passport/U.S. passport card- Military ID card issued by a branch of the U.S. Armed Forces- ID from a US Territory

- Guam, US Virgin Islands, Puerto Rico, American Samoa- Mexican Consulate Card

Procedural Guidelines

– Foreign Drivers License– Foreign Passport– Green Cards– Employee ID Cards– Prison IDs– Paper License– Government Program Cards– Club Cards– Hunting License– International ID Cards

Unacceptable forms of ID include but are not limited to:

What other unacceptable forms of ID have you been presented?

Improper Identification

Procedural GuidelinesAre we permitted to…

Share personal tobacco experiences with qualified ATCs?

Make the offer to anyone

who has not been properly

identified an adult tobacco

consumer 21+?

Initiate the offer or

conduct Consumer

Engagements with patrons

who are non-tobacco

users?

Initiate the offer or conduct

Consumer Engagements

outside the retail sales location?

Recommend a RJRT product that aligns with an

ATC’s taste preferences?

NO!NO!

NO!

YES!

YES!

FDA Review

FDA ReviewThe Family Smoking Prevention and Tobacco

Control Act…

“…provides authority to The Food and Drug Administration to regulate tobacco products under the Federal Food, Drug,

Cosmetic Act…”

“…with the objective of implementing regulations that are tailored to restrict advertising and promotional practices which are most likely to be seen or heard by youth and most likely to

entice them into tobacco use, while affording tobacco manufacturers and sellers ample opportunity to convey information about their product to adult consumers.”

FDA Review – What We Cannot Say

“Making any express or implied statement or representation directed to consumers with respect to a tobacco product, in a label

or labeling or through the media or advertising, that either conveys, or misleads or would mislead consumers into believing, that…”

“the product is approved by the FDA”

“the FDA deems the product to be safe for use by consumers”

“the product is endorsed by the FDA for use by consumers”

“the product is safe or less harmful by virtue of its regulation or inspection by the FDA or its compliance with regulatory

requirements set by the FDA”

FDA Review – CE Dialogue

Is this product regulated by the

FDA?

YesAre your products approved by the

FDA? No

Does the FDA endorse this

product? The fact that the FDA regulates this product

does not mean that the FDA approves this

product, deems it to be safe, or endorses it in

any way

Are smokeless products safer than

cigarettes?

No tobacco product has been shown to be

safe. The company makes no health claims

about our products

ATC Inquiry RJ Reynolds Employee Response

FDA Review – CE Dialogue

Why has Camel introduced modern

smoke-free products? Adult tobacco consumers 21+ tell

us that they are looking for new convenient ways to enjoy tobacco that doesn’t bother others. We offer a broad range of products that meet the desires of adult

tobacco consumers

ATC Inquiry RJ Reynolds Employee Response

Products in Conversation

• Brainstorm as a group important speaking points for your assigned Brand. Write your speaking points on the flip chart.

• Circle phrases that are relevant for conversation with ATCs

• Cross out phrases that confuse ATCs or aren’t the most consumer-centric way to describe the product

• As a team put together your circled items in the form of an ATC-relevant product description and prepare to present to the group

• Groups will add feedback to the group description to help round out the description for the Consumer Engagement

CAMEL Portfolio

Sold Cold for freshness

Tasty Tobacco in a pouch

For when you can’t smoke

Great flavors- spearmint and tobacco

CAMEL SNUS

CE Dialogue Roadmap

CE Dialogue Roadmap

Approach

Showcase

Close

CE Dialogue Roadmap

• Identify and Greet the ATC and build positive rapport• Verify that product is for ATC’s consumption• Age verify to confirm ATC status (21+)

Approach

CE Dialogue Roadmap - Approach

• Identify Adult Tobacco Consumer– What signs do you look for?

• Greet & Build Rapport– How do you greet?– Behind the counter vs. in the store with Consumer– How do you build rapport?

Role Play

CE Dialogue Roadmap

• A statement that provides a BENEFIT for the Consumer followed by a PERMISSION question.– The Benefit motivates the Consumer to give you more time– Makes you more comfortable asking additional questions

• Examples: I see you are buying cigarettes, are they for you? I’m doing a survey of tobacco consumers to better understand what they like best about their brand.– To see what you like best about your tobacco purchase, may I ask you 2

or 3 quick questions?– To get your opinion, may I talk to you for 2 or 3 minutes?

PERMISSIONQUESTIONBENEFITAPPROACH

Benefit /Permission StatementBenefit:• To help save you money…• To give you a new experience…• To make sure you have more choices…• To ensure you are the life of the party…Permission:• …may I have 2-3 minutes of your time?• …may I ask you 2-3 QUICK questions?

CE Dialogue Roadmap

• Qualify the ATC– Why qualify?– How do you verify consumption?– How do you verify age?– What forms of ID do you accept?– What forms of ID are not acceptable?

APPROACH

Putting It All Together

• Greet & Build Rapport• Benefit / Permission question• Verification

– Age– Consumption

• 2 minutes each Role Play

APPROACH

CE Dialogue Roadmap

Approach

Showcase

Close

CE Dialogue Roadmap

• Engage consumer about their preferences• Tell Brand Story to educate on key product points• Gauge response

Showcase

CE Dialogue Roadmap• Engage consumer about their preferences:

– What is your Usual Brand, and what is appealing about it?– Describe your taste preferences.– What would you like to change or add to your Usual Brand?– What would have to happen for you try a different brand?– Tell me how you chose xxx instead of Camel.

Showcase

CE Dialogue Roadmap

• Tell Brand Story to educate on key product points– Tell a Brand Story relevant to the consumer’s

preferences.– Describe the product points that best suit the ATC.– Ask if they can relate

Showcase

CE Dialogue Roadmap

• Gauge response – Interested in Trial– Wants more info– Thanks, but No Thanks

Showcase

My Brand StoryCamelGrizzlySnus

My Camel Story

Using Personal ATC Stories makes our dialogue more compelling

Stories showcase the product points in a more relatable fashion to ATCs

Stories make the dialogue seem fresh and unscripted because each ATC story is different and engaging

We are wired to recall information when it is presented as a story

Showcase

MY Brand Story

• Tables work in teams. Shares personal My Camel OR My Grizzly brand stories.– 5 minutes

• Combine stories to present to class.– 5 Minutes

• Tables 1, 3 & 5: MY CAMEL• Tables 2 & 4: MY GRIZZLY

– Each table has 2 minutes to tell their story

Showcase

Addressing Objections

Addressing ObjectionsWhen conducting Consumer Engagement

you may hear OBJECTIONS

An OBJECTION is not always a REJECTION

Addressing Objections Emotions and Listening

Each table has 3 minutes to flipchart answer the following:Table 1: How can objections make you feel?Table 2: Why do consumers object?Table 3: How can a customer (clerk, manager) cause an

objection? Table 4: How do you feel when a customer causes an objection?Table 5: What are the advantages of objections?

What happens to listening when emotions go up?

RELATE TO THE CONSUMER USING ACKNOWLEDGEMENT OR EMPATHY

STATEMENTS

POSITION a response

based on the needs of the

Consumer

CHECK WITH THE

CONSUMER TO MAKE

SURE THEIR OBJECTION HAS BEEN RESOLVED

ASK A QUESTION TO

GET THE CONSUMER

TO TALK ABOUT THEIR

OBJECTION

Addressing Objections

Addressing Objections

Step 1: Relating• Acknowledge the consumer’s objection

– Lets the consumer know they have been heard– A neutral response– Examples:

• Sounds like• It appears• “X” is important

• Empathizing with the consumer– Tells the consumer you have walked in their shoes– The consumer must believe you– Examples:

• I…appreciate, respect, recognize, realize, see…• Instead of “but” use “and”

Addressing Objections

Step 2: Questioning

The question should: • Be about the OBJECTION, not permission to

ask more questions

• Get the consumer to talk, not provide time for you to “change their mind”

Mike is conducting a CE in a convenience store when he runs into a competitive Newport ATC 21+ that tells him that he is not interested in CAMEL because he is fiercely loyal to Newport

Addressing ObjectionsNo Thanks, Newports are my smokes, I don’t mess with Camel

What Relating statement and Question can we ask?

Mike might say: • “Having a smoke that you can count

on is a good thing. What is it about Newport that you like most? What would you improve?”

• “It sounds like you are a loyal customer! Tell me what you enjoy most about Newport? If you could change anything about them, what would it be?”

• “I recognize your loyalty! Describe what keeps you coming back?”

Addressing Objections

Addressing ObjectionsRelate / Question Exercise

On handout, each table team has 3 objections– Develop a Relating / Question statement for each– Divide into pairs and practice your statements

• We will go over each table’s answers and you can write their answers down to create a take away “cheat sheet”

Acknowledge the objection:• Sounds like• It appears• “X” is important

Empathize: I…appreciate, respect, recognize, realize, see…

Addressing Objections

Step 3:Position & Checking• Listen to what the consumer says about

the objection and relate / question again if needed

• Tailor response to fit the consumer’s true needs

• Check to make sure the objection was resolved

Addressing Objections

The next step of Mike’s interaction: The ATC21+ tells Mike that he likes the Menthol flavor, and has just always smoked Newports. He would like the menthol to be a little stronger sometimes, like when he’s at a party.

How would Mike Position the consumer’s needs with something positive about CAMEL?

Addressing Objections Mike might say to the ATC21+:

“Having a strong, consistent menthol flavor is important to you. Correct? I often talk to

Newport smokers about CAMEL because the menthol capsule in CAMEL Menthol lets you add a boost of freshness to your cigarette.

Newport smokers appreciate the ability to add an extra fresh boost. Would having an extra

boost be important to you?”

Addressing Objections

• Team A line up on one side of room, Team B facing them• Team A gives an objection to Team B

– Team B provides a Relating / Questioning statement and then a Positioning / Checking statement if time

• 3 minutes– Coach & Feedback debrief

• Switch: Team B gives an objection to Team A

Role Play

CE Dialogue Roadmap

• Present appropriate offer & Reinforce key points• Lead ATC to the redemption process, if applicable• Completion

Close

CE Dialogue Roadmap

• Present Appropriate Offer & Reinforce Key Points– Is offer always required for a successful CE?– When is best time to present offer?– When do you reinforce key points?

• Lead ATC to redemption process, if applicable– What set up needs to be done prior to redemption?– How do you handle coupon transaction?

• Completion– How do you encourage trial?– How do you refer ATC to Website?– How to you end non-offer CEs?

• Non smoker / quitting / not changing

Close

Putting it All Together Role Play

Coaching & Feedback• Giving Coaching:

– Don’t apologize – it’s a GIFT!– Talk directly to the participant– Balance strength with what they could do different– Discuss specific examples– Discuss changeable behavior– Provide examples of new behavior– Provide feedback in positive and honest manner

• Receiving Feedback:– Be open minded– Listen & don’t interrupt– Balanced listening – hear strengths!– Take notes on “ah-has!”– Practice new behavior immediately

• Time Out

Summary

• CE as you GO!– Practice

• What went well• What needs improvement

Presentation Prep Night• Tonight

– Teams move into breakout rooms– Sign into local computers; PPP template to be delivered– Practice Social Styles Skills– Develop presentation– End at 8; email presentation to team

• Tomorrow– May come in as early at 7am to breakout room– Final presentation due at 8am– In seats by 8:15am / presentations start at 8:30

• Presentation– 10 minutes / 5-7 slides– Everyone must speak– Deliver to your peers– Be prepared for questions & feedback

Sub-head here

Title PlaceholderAdd sub text

The Opportunity

• Create an “Opportunity Statement” by answering:– The common problem each of us is

encountering in our territories is:

– The problem is caused by:

– If we do nothing, the results of this problem to our business is:

– The outcome we would be most excited about is: ____________________ 62

Draft. For Discussion Only

Action Plan

• Detail how your Action Team plans to address the opportunity at the territory level and also within your division. – What did you learn this week that will

help you bridge the gaps to improve results?

• Include milestones, responsibilities, and timing.

Draft. For Discussion Only63

Supporting Details

• How will you execute your plan?• How will you know your project is

successful?• What data (if any) supports the

need for your project?

64Draft. For Discussion Only

Expected Results

• What results do you expect?• How do you plan to track your

results?• How will you track your progress?

65Draft. For Discussion Only

People Impact

• What impact (if any) will this have on your ability to perform your already existing duties?

• Will there be any impact on your customers, consumers, or RJRT employees?

• How will this help you achieve the company vision for transforming tobacco?

66Draft. For Discussion Only

Communication

• How will the team communicate?– Conference calls? How often?– Email?– Other?

• Do any team members have a specific responsibility? If so, tell your audience.

67Draft. For Discussion Only