Bob Samples

Director of Category Planning and Support

Hormel Foods

October 12, 2010

Activating Shopper Insights

How the right adjacencies canimprove shopper satisfaction

Hormel Foods

• Based on Austin, Minnesota

• 19,000+ employees globally

• 34 brands that are either No. 1 or No. 2 in their category

Category Leadership

• Fresh Deli

• Heat & Eat

• Authentic Mexican Foods

• Center Store

“Our mission is to be considered by the trade to be the leading sales company in those categories in which we

choose to compete.”

Center Store

• 77% of sales

• 82% of profits

Focus of Discussion

Activation

Results

Insights

Insight 1: Understand How Organize

• 68% Awareness of convenience products

35% knew where to find

• Convenience Shoppers want convenience items together

Insight 2: Understand the Shopper

26 live-alongs 5 retailers across 5 markets Interbrand Design Forum

InterbrandDesignForum research found that

shoppers don’t know the category,

in live-alongs many didn’t know they had in panty

“By the time I get home from work after

working late, the last thing I want is a big meal

before going to bed.” – Stacy, Denver

“I keep another pantry in my

trunk. I need to have something

they can eat on the way to

practice.” – Florence, San

Francisco

Insight 2: Understand the Shopper

Insight 3: Understand the Destination

Objective: Create an experiential center

store shopper destination for

Quick and Easy meals that

attracts new consumers to the category and

enables a deeper relationshipwith existing purchasers.

Real Meals. Real Fast.

Less Space. Less Time. More Options!

Control Set

Shopper Preference

Control set performed as well as prototypes

Key Takeaways

• Adjacencies trump signage

• Shoppers purchase more when products are grouped by occasion

• Brand/Color blocking is key

• Vertical blocking performs better

• Merchandizing systems allow packaging to work harder

Key Takeaways

• Best PracticesBi-Lo Example

Key Takeaways

Insight:• Shoppers want a 10 minute meal solution• Shopper who want convenience don’t want to search

Activation:• Convenient Meal Displays

Shopper Results:• Unit sales +30% • $ sales +24% • Number of Households purchasing +40%

Wins• >3X unit lift on display• >100% sell thru

Simple Meals – Microwave Program

• Learn your shopper– Organization

– Shopper Mindset Messages

• Help them shop– Occasion based

– Brand Emphasis

– Engaging Imagery

• Drive Results– Shopper Marketing

– Target high-potential stores

53% purchased an item they didn’t intend to purchase

Building on Success

Questions?

Thank you

Bob SamplesDirector Category Planning

and Support

Hormel FoodsPhone: 507-434-6671

Email: rgsamples@hormel.com