1. 6-25-13
June 27, 2013
Instant Combo Savings®
• grows private brands together with national brands
• drives trial on private brands
• delivers guaranteed display support of 75%+
2. • ConAgra Private Brands Goals/Strategies
• ICS Program Overview
• Potential ConAgra Program
• Recommended Plan of Action and Budget
• Next Steps
• Appendix A – Measuring Success
1
Agenda
4. ConAgra Private Brands Goals/Strategies
3
• Utilize classic CPG marketing
tactics to grow CA Private
Brands household penetration,
trial and loyalty
• Leverage category affinities of
CA Private Brands with CA
National Brands
• Deliver programs to offset any
potential volume losses during
Private Brand transition
• Develop plans to start effective
program implementation as soon
as possible
6. ICS Overview - Program Details
5
• Buy National Brand, get complementary, non-
competing Private Brand FREE*
• Combo Displays with signage
• Savings delivered instantly at checkout
• Tied into Retailer’s ad week
• Runs in conjunction with planned TPRs
• Announced in Retailer’s weekly circular,
website and mobile app
• Category exclusivity
• Retailers currently in network:
• Pilot Test: Safeway (1,441 stores)
* As an alternative, you can partner with perimeter department items from produce, deli, bakery, meat, dairy, etc.
7. ICS Overview - Program Results*
6
• Display support averages 84%
• NB rate of sale off display is 63% greater than NB display without Combo Offer
• NB volume lift is 2.5 times previous NB display & feature promotions
• NB cost per unit moved is lower than other coupon programs
• PB sells 3 weeks of volume
ICS display Normal display
* Syndicated data and store data
9. 8
1. ConAgra Private Brands partnered with ConAgra National Brands
Examples:
• Granola Bars / Orville Redenbacher s
• Fruit Snacks / Snack Pack or Chef Boyardee
• Lasagna or Pasta / Hunt’s Tomatoes or Hunt’s Pasta Sauce
• Frozen Waffles or Pancakes / Banquet Brown ‘N Serve Sausages
• Pie Crusts / Reddi-Wip
• Frozen Potatoes / Banquet Chicken
• Bakery Cookies / Swiss Miss
Potential ConAgra Program – 4 Types of Combo Offers
10. 9
2. ConAgra Private Brands paired with other ConAgra Private Brands
Examples:
• Fruit Snacks / Peanuts
• Pancake Mix / Syrup
• Peanut Butter / Jelly
• Dinner Rolls / Pie Crusts
Potential ConAgra Program – 4 Types of Combo Offers
11. 10
3. ConAgra Private Brands partnered with non-ConAgra National Brands
Examples:
• Pretzels / Coca-Cola
• Mayonnaise / StarKist Tuna
• Pita Chips / Tribe Hummus
• Corn Chips / Pace Salsa
• Breakfast Bars / Ocean Spray Cranberry Juice Drinks
Potential ConAgra Program – 4 Types of Combo Offers
12. 11
4. ConAgra Private Brands partnered with perimeter departments
Examples:
• Pita Chips / Deli Meats
• Cereal / Strawberries
• BBQ Sauce / Meat
Potential ConAgra Program – 4 Types of Combo Offers
13. Potential ConAgra Program – Developing Winning Combos
12
• Support targeted demographics, eating occasions, and meal solutions to
maximize brand equity.
• Leverage CPG shopper insights and affinity data.
• Lead the shopper to an intuitive decision to buy both items together.
• Represent joint display opportunities.
15. Potential ConAgra Program – Additional Elements
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1. Pre-Announcements
2. Bonus Offers
3. Continuity/Loyalty Offers
4. Additional Trial Offers
16. • Catalina Pre-prints delivered to targeted households one week before program
• Sunday FSIs, ADVO and Market Radio are other options
Potential ConAgra Program – Pre-Announcements
15
17. • Encourage shoppers to purchase all four “free” offers
• Instant Cash is an alternative to coupon
Potential ConAgra Program – Bonus Offers
Announced in the circular
and on display signage
16
18. Potential ConAgra Program – Bonus Offers
17
• Opportunity to tie-in with ConAgra Platform Programs
• Tailgating ($10 instantly off meat purchase)
• Child Hunger
• “Get One, Give One”
• When consumer purchases all four offers, matching free items are
donated to Food Banks
19. Potential ConAgra Program – Continuity Offers
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1. Continuity
Example:
• Granola Bars free offer redemption
generates Granola Bars “next purchase”
coupon from the Catalina printer
20. Potential ConAgra Program – Continuity Offers
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2. Continuity + Trial
Example:
• Granola Bars free offer redemption
generates Granola Bars “next purchase”
coupon plus additional coupon on other
PB item, for example Pretzels
21. Potential ConAgra Program – Continuity Offers
3. Continuity + Portfolio Trial
Example:
• Granola Bars free offer redemption
generates Granola Bars “next
purchase” coupon plus a coupon for
$5 savings when purchasing three
specific ConAgra Private Brand items
20
23. Recommended Plan of Action & Budget
1. Test Program
2. Medium-size Program (approx. $5MM)
3. Large Program ($30MM-$50MM)
22
24. Recommended Plan of Action & Budget
Test Program
• Single event across current four retailers:
Investment
• $60/store per offer
• Estimate $30/store redemption per offer
• Plus Cost of Pre-Announcement, Bonus and Continuity Elements
23
25. Recommended Plan of Action & Budget
Medium Program
• Assumes 10 programs annually with current four retailers
• Details in ConAgra Worksheet on next page
Large Program
• Expansion of program across the ConAgra National Account Group:
• Details in ConAgra Worksheet on next page
24
26. ConAgra ICS Program Worksheet
Accounts Offers
Total
Network
Stores
Annual
Programs
Par7cipa7on
Cost/Offer/Store*
Total
Par7cipa7on
Costs
Bonus,
Con7nuity &
Pre‐Annoucement
Cost/Offer/Store
Total
Bonus,
Con7nuity &
Pre‐Announcement
Costs
TOTAL**
TEST PROGRAM
4 NE Accounts 4 1,469 1 $90.00 $528,840 $33.45 $196,552 $725,392
MEDIUM‐SIZE PROGRAM
4 NE Accounts 4 1,469 10 $85.50 $5,023,980 $33.45 $1,965,522 $6,989,502
LARGE PROGRAM
4 NE Accounts plus
7 additonal
Na=onal Accounts***
4 8,955 10 $85.50 $30,626,100 $33.45 $11,981,790 $42,607,890
* These projec=ons include es=mated redemp=on liability
** These projec=ons do not include any contribu=on from ConAgra Na=onal Brands which would reduce investment by ConAgra Private Brands
*** 7 Addi=onal Na=onal Accounts are Safeway, Kroger, Meijer, Publix, H‐E‐B, Giant/Eagle, Target
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28. Next Steps
• Determine budget, number of events, timing, and retailers
• Prioritize and identify CA Private Brands and CA National Brands
for participation
• Develop offers using Insights and Affinity data
• Secure commitment from CA National Brands
• ICS executes implementation plan
27
29. 1. Volume
2. Lift
3. Redemption
4. Cost/Unit Moved
5. Display Compliance
6. Rate-of-Sale Off Display
28
Appendix A
PPE/Data Insights & Analysis - Promotion Results
30. Using Club Card data, we will review households that purchased the combo offers.
These consumers will be segregated into two groups:
29
Appendix A
PPE/Data Insights & Analysis - Change in Purchase Behavior
1. First-time buyers of the Private Brand
• Trial rate resulting from offer
• Retention rate – six months later
2. Previous buyers of the Private Brand
• Measure share of purchase requirements
• Measure up front
• Measure six months later
• Segregate into three subgroups
• High Share (75-100% of purchase requirements)
• Medium Share (25-75% of purchase requirements)
• Low Share (1-25% of purchase requirements)
31. 3. We will also look at changes in purchase requirements for Previous Buyers who
did not participate in the free offer
4. Additional analyses for categories that promote multiple times to understand
effect over time
30
Appendix A
PPE/Data Insights & Analysis - Change in Purchase Behavior (cont.)
32. 1. Promotion Results - will be measured via Retailer Data (no cost to ConAgra)
and via Syndicated Data supplied by ConAgra
2. Change in Purchase Behavior – will be measured via Shopping Cart data
purchased from a third source
3. Technology Solutions will be utilized to facilitate data/insight mining
4. Pass-through of costs for any data purchased
31
Appendix A
PPE/Data Insights & Analysis - Analytics
33. Instant Combo Savings
182 Howard Street, #005
San Francisco, CA 94105
T (415) 788-3838 ext. 110
F (415) 366-8220
www.InstantComboSavings.com
Instant Combo Savings®
• grows private brands together with national brands
• drives trial on private brands
• delivers guaranteed display support of 75%+
