Blueprint for a New Era:

The Retail Commission on

Shopper Marketing

Dr. Brian Harris, The Partnering Group

Diane Wallace, The Coca-Cola Company

Janet Sparkman, SuperValu

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Objectives

• Commission Overview

• Progress Report

• Work To Be Completed

• Commission Member Perspectives

2Copyright © 2009 The Partnering Group

Collaborating as trading partners to market

to both – consumers and shoppers

Shopper Marketing:

In Theory a Simple Idea…

3Copyright © 2009 The Partnering Group

Merchandising

focused

Marketing to Shoppers

In-Store Marketing

Plus

Category Management

Plus

…It Means Different Things To

Different Organizations

Marketing

focused

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Next Generation of Co-Marketing

Copyright © 2009 The Partnering Group

• Build and maintain loyalty to store and brand

among targeted shoppers

• Win the 1st two “Moments of Truth”:

store choice and product choice

But There Are Two

Common Objectives

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The Industry Needs a Common

Understanding & Approach

for Shopper Marketing

In-store

experience

Private label

marketing

Shopper cluster

marketing

Customer

marketing

Retail marketing &

merchandising

Commercial

innovation

6Copyright © 2009 The Partnering Group

• Common industry principles, definition and process

• Retailer driven and integrated into business practices

• Collaborative strategic shopper marketing planning

• Delivers real shopper value, improved experience

• Creates efficiencies and improved returns

• Organizational capabilities must be in place

A Success Roadmap

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• Define retailer requirements:

strategic, operational, organizational

• Integrate Shopper Marketing into

current business practices

• Establish new collaboration model

for growth & shopper satisfaction

Purpose of the Commission

8Copyright © 2009 The Partnering Group

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Commission Member

Companies

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Strategic Advisor Companies

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• Retailer-centric philosophy

• Best Practices approach for Shopper Marketing

• Capabilities required by retailers and suppliers

• Roadmap for retailers and suppliers to follow

Commission Deliverables

The Best Practices Shopper Marketing Report:

11Copyright © 2009 The Partnering Group

Key Principles of

Shopper Marketing

1. Shopper and consumer focused

2. Retailer sponsored and enabled

3. Delivers execution excellence

4. Driven by a collaborative process

5. Results in real shopper value

6. Creates efficiencies and improved returns

12Copyright © 2009 The Partnering Group

Shopper Marketing:

A Working Definition*

Shopper Marketing is the use of

insights –driven marketing and merchandising

initiatives to satisfy targeted customer needs,

enhance the shopping experience, and

optimize business results for

retailers and suppliers.

13* Continues to evolve based on input from Commission Copyright © 2009 The Partnering Group

Collaborative Shopper Marketing

ModelSupplier

Strategic

Foundation

Core

Work

Key Enablers

Retailer

Core

Work

Key Enablers

Strategic

Foundation

Shopper Marketing

Plan

14Copyright © 2009 The Partnering Group

Key Enablers for

Shopper Marketing

StrategyProcess

Excellence

Information

Systems

& Measurement

Organization

Capability

Best Practice

Companies

15Copyright © 2009 The Partnering Group

“Happiness Starts At The Shelf”

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Shopper Marketing

Diane Wallace

Vice President

Shopper Marketing

Classified - Internal use

Across the Globe …

• Shoppers consume Coca-Cola products 1.6 billion times/day

• Our retail world is more complex and competitive

• Our legacy will be to shape long term habits

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Classified - Internal use

We Believe …

Our Retail Activation Must

Convert Shoppers to Buyers

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Knowledge

& Insights

Consumers/

Shoppers

System

Leaders

Brands

Innovation

Retailers/

Customers

Agencies

Design

Portfolio

Strategy

Retail

Activation

Commercialization

Insight

Shoppers

Become

Buyers

Retailer Collaboration is Imperative

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Invest / MeasureConnect w/ ShoppersAlign Goals

Capability Under Construction…

• Continuing to build the science of

shopper insights

• Fine tuning in-store strategy and

investment

• Building Shopper Marketing

capability

• Sharing knowledge on global basis

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Commission Foundation Critical …

• Ensures alignment of focus with retailer

• Informs capability and overall shopper

marketing direction

• Jumpstarts industry with

common view and language

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Happiness Starts at the Shelf…

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Make shopping easy so that Coca-Cola brands can

deliver on promise to…

Refresh consumers and inspire moments of

optimism and happiness

Shopper Marketing at

SUPERVALU

Janet Sparkman

Corporate Vice President

Customer Strategy & Management

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Where we are…

• Startup following 2006 Albertsons acquisition

• Developed key segmentation models

• Focus is on building our “activation framework”

• Established Shopper Marketing team in Brand organization

• Currently delivering targeted email, direct mail, loyalty card offers on a regular basis

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What we’ve achieved so far…

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• Three segmentation models across all key consumer

touchpoints

Marketing programming

Merchandising and promotion

Real estate/Store design

Operations

• 55 Million targeted shopper contacts and over 141 million

manufacturer coupons delivered since March 2009

• 842 stores de-cluttered to improve shopping experience

• Currently working with 3 strategic partners on key aisle

“reinventions”

Our Shopper Marketing

Foundation is in Place

VISION

Establish and grow a proprietary enterprise-wide Shopper Marketing

program that facilitates industry-leading innovation and ongoing

vendor support.

MINDSET

Shopper vs.

product

focus

Insight-

driven

ORGANIZATION

Core team of

SME’s

supported by

cross-

functional

matrix

STRATEGIC

ALIGNMENT

Integrated

Merch &

Marketing

planning

MEASUREMENT

Analytic

capability to

measure

what … and

who

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Shopper Marketing Objectives

• Drive SUPERVALU growth via incremental vendor

funding

• Position SUPERVALU as a strategic investment partner

by delivering a profitable return on vendor investment

• Standardize an enterprise-wide approach for vendors to

invest incremental Shopper Marketing dollars

• Secure SUPERVALU position in Cannondale’s Top 10

Shopper Marketing rankings within two years

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Lessons Learned

• Timing of securing vendor funds

• Internal coordination between

Marketing/Merchandising

• ROI expectations

• Coordination with Retail Operations

Building for the Future with Our

Partners

FY’11 Planning Kick-Off Meetings later this

month

• Internal Meeting: mid-October

• Vendor Partners: late-October

Focus on:

• Merchandising/marketing key objectives

• Program menu

• Tactical options

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Retail Commission Action PlanQ4, 2009 Q2, 2010Q1, 2010

In-Store Expo Commission Introduction

Strategic Advisory Company

Discovery & Working Sessions

Joint Retailer / Supplier Pilots

Final Report

Publication

Collaborative Process Finalization

In-Store Marketing

Summit

Collaborative Process Development

Joint Commission

Working Session

Blueprint for a New Era:

The Retail Commission on

Shopper Marketing

Thank You

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