DEFENSE COMMISSARY AGENCY Your Commissary … It’s Worth the Trip! Category Management Planning & Promotions ALA Commissary Roundtable, April 1, 2015 Ms

DEFENSE COMMISSARY AGENCY

DeCA

Your Commissary … It’s Worth the Trip!

Category Management Planning & PromotionsALA Commissary Roundtable, April 1, 2015

Ms. Tracie RussDirector, Sales

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Defense Commissary Agency

Overview

• Category Management Teams• Certification• Category Management Roadmap

– Consistent processes – Data – Scorecards

• Collaborative planning

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Category Management Roadmap

• Our objective for today– Inform Industry on DeCA Process and Expectations

for Collaborative Planning and Category Reviews• Panel members

– Mr. Steve Villeneuve, DeCA– Mr. Jon Sanders, DeCA– Mr. James Taylor, DeCA– Ms. KC Remick, Kellogg’s– Mr. Marc Knowles, P&G

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• Yesterday– Limited standardization – Not part of a strategic management process– Did not facilitate joint annual plan of trade funds

• Today– Standardize processes for identification:

• Strategic Growth • Assortment opportunities• Yearly promotional planning and investment • Incorporation of everyday pricing negotiation• Days of supply (in-stock)

• Tomorrow– Consistent processes for collaborative strategic planning– Scorecard for industry and category

Evolution

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Key Components of Program

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End to end process to deliver value to our ever-demanding customers

Category Management

Shopper Insights & Shopper Marketing

Planogram &

SpaceManagement

In-Store Execution&

Merchandising

•Streamline Business Process•Improve Customer Service•Utilize Technology for Information Sharing

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Standardized Practices

Category Review• Item ranker• Category performance• Line item count• Brand performance• Brand impact

Planogram Review• Item pack out• Size store

– Size 5– Size 4– Size 3– Size 2– Size 1

Templates designed to:

• Manage Strategically Product [categories] over lifecycle

• Optimize Space utilization; analyze effectiveness over time

• Leverage Business Intelligence6

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Resource Sharing

Industry

–Category / Shopper Insights

–Decision Hierarchies Segmentation

–Best Practices

– Innovation

–Merchandising Solutions

–Performance Metrics

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– Strategic role of Category

– Days of supply objectives

– Category pricing strategy

– Promotional planning

– Performance metrics

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• Ensure patron satisfaction across all categories• Identify/invest in categories that drive Patron Loyalty, Savings, Volume

How does category perform in DeCA?(The Why)

– Demographics– Shopping Occasion– Assortment– Price– Merchandising – In stock

JUICES/DRINKS-FROZEN VEGETABLES & GRAINS-DRY COUGH AND COLD REMEDIES

Category Index 2.14566980992017 2.09553459505306 0.309981635134751

0.25

0.75

1.25

1.75

2.25

Category Index

Strategic Planning

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Total United StatesPrivate Label

shopperIndex

Race of Head of Household Race: White (Non-Hispanic) 69.0% 72.3% 105 Race: Black (Non-Hispanic) 11.9% 9.6% 80 Race: Hispanic 12.5% 12.7% 101 Race: Asian (Non-Hispanic) 4.3% 3.3% 77 Race: Other (Non-Hispanic) 2.2% 2.1% 95Number of Persons 1 Person Households 27.1% 17.5% 65 2 Person Households 32.4% 33.8% 104 3 Person Households 16.2% 17.6% 109 4 Person Households 13.2% 16.0% 121 5+ Person Households 11.1% 15.0% 135Age of Head of Household Age 18 - 24 4.2% 3.1% 74 Age 25 - 34 15.1% 13.0% 86 Age 35 - 44 17.4% 18.0% 104 Age 45 - 54 20.1% 21.6% 108 Age 55 - 64 19.4% 20.6% 106 Age 65 - 74 13.2% 13.7% 104 Age 75 or More 10.7% 10.0% 93Age and Presence of Children Children Under 6 only 7.4% 7.7% 104 Children 6 - 17 only 18.5% 22.0% 119 Children Under 6 and 6 - 17 6.6% 8.0% 122 No Children 67.5% 62.3% 92

Spectra & Consumer Demographics

• Who is our shopper?

• What are they purchasing?

• Demographics

• Identify shopper opportunities in Remaining Market and All Other Channels

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Assortment/Placement

OJ AO 100% Chilled DrinksSuper

Premium

Single Serve vs. Multi Serve

Chilled Teas

FC

Segment

Brand

Form

Health Benefit

Flavor/Fortification

Size

Serving Class

Type

TPP, Trop 50, Minute Maid, Private Label, Simply, Florida’s Natural, etc.

Pulp No Pulp

Low Calorie Regular

Vitamin Fortified, No Added Vitamins/Fortification etc.

Apple, Lemon, etc.

Lemonade, fruit punch, etc.

Single Serve

54/59vs.

64 oz

89/96 oz

128 oz

Berry, chocolate,

etc.

Dole, Simply, Private Label,

etc.

Minute Maid, Sunny D, etc.

Lemon, Green, etc.

Size Size Size Size

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Space Allocation

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Bottom Line Objective

Together, we can increase sales and increase savings to our customers

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Objective: Optimize Promotional Dollars to Increase Sales and Patron Savings

– Strategy must fit category role

– Determine pricing strategy (EDLP, MEDLP, Hi/Low)

– Space and assortment depth

– Category seasonality

– Agreement for promotional performance

Annual Planning

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Promotional Planner Matrix

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Promotional Matrix Packages

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CATEGORY:SEGMENT:

Size Strategy Dollar ShareUnit

SharePaton Savings DeCA Cost Promotion Type

Reg (EDI) Cost

Promo Price

MANUFACTURER BROKER BRAND PRODUCT DESCRIPTION UNIVERSAL PRODUCT CODE Hi low PWR BUYEDLP MGR SPEC

Modified OTB

PROMOTION PERIOD

XX

Industry Submission for Requested Promotional Plan

Optimal Period TimingPricing Strategy (EDLP, Modified EDLP, Hi/Low)

Requires Approval from Category ManagerNTT Pending

Promotional Planner & Matrix

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Promotional Evaluation Indicator

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Post Promotion Effectiveness

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Shopper

Penetration

Buying Rate

Store Loyalty

Market Basket

Conversion Rate

Trips

Sales / Market

Volume Growth/Decline

Category Share

Private Label Share

Gaps

Promotion Effectiveness

Pricing

Distribution Speed

Productivity / Vendor

Out of Stocks

Fill Rate

Assortment

Days of Supply

Speed to Market

Scorecard in Development

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• Delivery of the Benefit

• Patron PASSION

– What the patron wants to buy

– When the patron wants to buy it

– Undeniable savings and value

Working Together

DEFENSE COMMISSARY AGENCY

DeCA


Thank You!

Documents

DEFENSE COMMISSARY AGENCY Your Commissary … It’s Worth the Trip! Category Management Planning & Promotions ALA Commissary Roundtable, April 1, 2015 Ms