ICS Cpg Cycle 1-6 111210_NJL

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ICS Cpg Cycle 1-6 111210_NJL

  1. 1. Introducing A national volume building program driven by guaranteed displays Instant Combo Savings® 2011 Member of Nancy J. Lucas Instant Combo Savings T (609) 714-9206 or T (415) 788-3838 ext. 111 C (609) 731-3449 www.InstantComboSavings.com
  2. 2. Introducing … Instant Combo Savings® • Guaranteed displays pre-authorized by retailer (75%+ audited compliance) • Customary TPRs not required • Program announced to consumers via: – Retailer weekly circular, retailer website, POS at shelf and on displays – Full page FSI, ICS Facebook page, ICS blog Performance Guarantee or your money back! 2 A national volume building program driven by guaranteed displays ICS drives incremental volume through merchandising support activated by a partnership between CPG brands and retailers’ complementary, non-competing Private Label brands
  3. 3. Promotional Comparison 3 Sampling FSI + TPR TPR Catalina FSI In-Store Coupons In-Store Media Cost/Unit Moved High Display High Cost /Unit Moved Low Display LowSize of Circle = Volume
  4. 4. 4 ICS delivers significant savings • Your brand partnered with a complementary, non-competing Private Label brand • FREE offer* • Shoppers redeem each offer individually • Savings delivered instantly at checkout * Assumes 25 – 35% savings for each offer
  5. 5. 5 Weekly circular ICS drives feature support & consumer attention • Delivers high value savings to the consumer • 9-12 offers from multiple National brands • Category exclusivity • A Bonus savings program attracts additional attention by creating a higher savings potential • Shoppers receive Bonus Savings when 3 or more offers are redeemed. Savings are doubled with the bonus
  6. 6. ICS supports the program with a full page FSI 6 • Runs in each retailer’s key markets • Drops on the Sunday closest to the start of the retailer’s ad week
  7. 7. ICS guarantees high levels of display compliance • Executed through partnership displays • Supported by the ICS Merchandising Network – Pre-call – Display building & signage placement – Replenishment 6 Multi-shelf endcap Floor display Refrigerated display Frozen display
  8. 8. ICS guarantees POS placement • All stores receive signage for both Your Brand and Private Label • Signage will be placed on display and at the shelf location for each brand 8 Shelf/soda department Shelf/chip department
  9. 9. Category Exclusivity/Timing 9 • CPG brands receive category exclusivity for both National Brand and Private Label competitors • The program runs across the retailer network once during a 4 week cycle. Each retailer’s program is 1 week in duration, tied to the retailer’s ad week
  10. 10. Option: Corporate Event 10 ICS Corporate Events will drive 100% feature support and display compliance of 75%+ for each participating SKU…more than twice the level of typical FSI Corporate Campaigns* • An ICS Corporate Event is dedicated to your company - Choose your theme - Customize your bonus/overlay - Minimum 6 offers • Pricing upon request * Source: March – May 2010, Safeway
  11. 11. ICS is a turnkey program • ICS Retailer Network is pre-authorized for displays and features ads • ICS: – Develops and secures approval of combo offers – Produces all program elements – Places FSI – Coordinates program details with your National Account Managers Projects volume lift Informs Category Managers/helps close incremental sale • ICS Merchandising Network sets displays and POS • ICS prepares a post promotion evaluation (including performance guarantee results) 10
  12. 12. Letters of Pre-Authorization 12
  13. 13. Rollout Timetable 12 Phase Timing ICS Retailer Network Stores 1 2008-2009 2 Retailer Test COMPLETED 2 Cycle 11 (2010) Stop & Shop, Giant Carlisle, Giant Landover, Martin’s COMPLETED 3 (2011) Cycles 2 - 6 Food Drug 1,675 4,700 4 (2011) Cycles 7 - 13 Food Drug Mass 2,500 4,700 1,300 5 (2012) 2012 Food Drug Mass 13,300+ 18,800+ 2,800+
  14. 14. 14 ICS 2011 Cycles
  15. 15. ICS Retailer Network 15
  16. 16. Program Investment Cycles 1-6, 2011 16 Media/Distribution FSI (30.4 mm) POS Circular (96.8mm) Store Participation and Post Promotion Evaluation $ 49 Merchandising/Production Merchandising services Print Production Shipping $16 Total Cost Per Store $65 Note: 1. Grocery, Beverage or HBC products may incur an additional cost for corrugate display units or pallets, depending on the retailer 2. FSI runs Sunday prior to retailer’s ad week for their first 2 programs. Coverage is all markets where the retailer has 10% or more ACV share plus a minimum of 10 stores Estimating Range – 5% to 9% for combo offers requiring multiple purchases of your product; 15% to 19% when only one package of your product is purchased Partnership Offer – CPG will be billed for face value of partnership offer plus 5¢ handling Bonus Offer – All participating CPG brands share in the funding of the bonus offer – face value plus 5¢ handling Clearing – Retailer submits electronic redemption report directly to CPG or to CPG’s redemption agent Participation Performance Guarantee If the program does not reach the agreed upon targets, ICS will rebate a portion of Media & Distribution costs Redemption
  17. 17. Performance Guarantee 17 Example: If volume lift is less than 300%, you will receive a rebate on media/distribution costs as follows: Volume lift % Rebate % 201 – 300 25 100 – 200 50 0 – 99 75 • Based on volume, merchandising or profitability goals established prior to program implementation • Goals can be volume lift, year over year volume growth, display compliance, promotion cost/unit moved, etc. • Performance rebate determined by syndicated data, retailer data or store audits
  18. 18. Number of Participations Media/Distribution Cost Discount 2 25% 3 35% 4+ 45% Discounts are based on the number of participations within one program. ICS Multiple Participation Discount 18
  19. 19. ICS Recap 18 Announced with feature ad & FSI Broad consumer reach builds program awareness. Multiple FREE offers engages Shoppers Pre-Authorized Displays 75%+ compliance/significantly higher than most programs Category Exclusivity Blocks both National Brand and Private Label competitors Partner with Private Label Retailers have vested interest in program’s success Strong ROI Promoting at everyday price protects brand equity. Strong promotion lift drives both 1 week incremental volume & permanent gains in base volume Turnkey Requires less of your time ICS Merchandising Network Set-up for each retailer based on their in-store merchandising practices Performance Guarantee If we don’t reach the goals established for your brand, we will rebate you a portion of the media/distribution cost.
  20. 20. 20 • Discuss details related to your participation • Identify participating brands/packages • Confirm category availability • Identify related item categories • Review ICS Master Services Agreement Next Steps
  21. 21. Case Study: Ahold, October, 2010 - Results Program Dates: Giant Carlisle/Martin’s 10/17 - 10/23 Giant Landover/Stop & Shop 10/22 - 10/28 Display Compliance: 75.3% average for 8 combo offers Pricing: 5 out of 8 CPG Brands elected to run at everyday price Volume lift: Ranging from less than 100% to 370% and higher. Key variables determining lift were presence of a TPR during the promotion week or the week before, out of stock conditions, strength of the combo offer, size of the Brand and competitive activity Redemption as a % of Units Moved: 6.7% for combo offers requiring multiple purchases of CPG product 17.0% for combo offer requiring only 1 purchase of CPG product 21
  22. 22. Case Study: Ahold, October, 2010 - FSIs 22
  23. 23. Case Study: Ahold, October, 2010 - Weekly Circular 23 10/22-10/2810/17-10/23
  24. 24. Case Study: Ahold, October, 2010 - In-store Displays 24
  25. 25. Case Study: Ahold, October, 2010 - In-store Displays cont.. 25
  26. 26. Case Study: Ahold, October, 2010 – POS cont.. 26 Stanchion Bib tag Display Toppers

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