222
• Focus of Today’s Breakout Session• What DeCA and Industry are Doing Well
• Mike Pfister, Maryanne Sullivan, Tim Brown and Tom Fehily
• Why we Promote?• Charlie Dowlen and Ron Maxey
• Why Marketing?• Sallie Cauthers and Mike Hatfield
• Areas of Opportunity• Michelle Frost and Leah Gardner
333
• Did Someone Say Fun???????
• Lights
• Camera
• Action
444
• Fun Cast – Take 1
Theme – What we are Doing Well
Starring• Mr. Michael Pfister, DeCA/Store Operations
• Ms. Maryanne Sullivan, Advantage Sales
555
• DeCA and Industry do a Good Job of Partnering to Execute Published Promotional Plans
1. Display Compliance2. Display Activity
-Ensuring Enough Inventory is on Display to Meet Patrons Needs-Full End Caps From Start to Finish-Mass Displays
666
JAN-SEP 2011 OCT 2011 NOV 2011 DEC 2011 JAN-FEB 2012
88.0%87.5%
84.8% 81.7% 81.7%
POWER BUY
82.0%76.1%
74.7% 73.1%
71.8% PRIMARY
84.7%83.6%
78.1% 77.0%
75.1%
MANAGER SPECIAL
79.0%
75.6%
POWER BUY FROZEN
70.0%
65.3% POWER BUY REFRIGERATED
Source: CommEx
Post Re-Org Improvements
777
Focus Items (PB, MS, Primary - Grocery)Focus Items Compared to Rest of Package
Jan-Sep 2011 Oct 2011 Nov 2011 Dec 2011 Jan-Feb 2012 AVG% of Mandates 6.0 2.4 2.9 2.4 5.7 4.3 % of Package $ 22.1 16.1 18.7 16.8 24.1 21.1
Why Focus Items Matter….
Power Buys, Manager Specials and Primaries Account for:
• 4.3% of the Items in the Promo Package, and • 21% of the Promo Package Dollar Sales
Source: Empower IT
Source: Empower IT
As compliance on the focus items has increased, so has their $ contribution to Grocery
Why execution on focus items matters….
Focus Items Compared to Total Grocery
Jan-Sep 2011 Oct 2011 Nov 2011 Dec 2011
% of Grocery Items 1.4 1.4 1.6 1.4
% of Grocery $ 4.1 4.2 5.4 4.8
$ Contribution Index 293.8 294.7 342.8 343.9
293.8 294.7
342.8 343.9
260
270
280
290
300
310
320
330
340
350
-
1.0
2.0
3.0
4.0
5.0
6.0
Inde
x
% o
f Tot
al G
roce
ry
999
DeCA and Industry doing a Good Job of Partnering to Execute Published Promotional Plans:
DISPLAY ACTIVITY!!
1. Keeps Product in Stock and Available for Duration of Display Period.
2. Creates a “WOW” Factor to Enhance the Shopping Experience.
= Execution at its Finest
Mass Display Creativity (Themed)
212121
Compliance + Display = Execution1. Greater Patron Savings
• Sell More/ Save More
2. Greater Overall Sales Performance & Sales Lift• On Average 30-50%
3. Executed Promotional Plans Generate Opportunities for Additional Manufacturer Funds!!
$$$$$$$$$$$$$$
222222
232323
• Deliver the Promise of the Lowest Price to Military Patrons!
• Promotional Differences: DeCA vs Retail
– Non-Profit vs Profit
– Number of Mandated Items Promoted Every Month
– DeCA: 124 items (Managers Specials-Power Buys-Primary)
Average Per Mandated 2 Week Period (250/month).
– Retail: On Average Retail will have 500 Mandated Items
Promoted each Month. Many Different Types of
Promotions-- Hourly, Daily, Weekend, Weekly, Bi-Weekly,
Monthly. Displays Change Often at Retail.
– Challenges
• Loss Leaders
• Cannot Market to the Highest Bidder
242424
• Why the Same Items all the Time?
– Top Selling Items (Destination Categories) Drive Promotional Frequency.
– DeCA Items Selected are on Similar Timing as Retail.
– DeCA Follows a Promotional Matrix by Category Which is Reviewed Annually
• Matrix Example: CANNED/BOTTLED FRUIT
• Based on Sales Canned/Bottled Fruit will not be Promoted May-June or July.
252525
• Why are there Mandated Qty’s/How are They
Arrived at?
– Top Selling items/Categories
– (Examples: Snack--Laundry Detergent)
Drive Category Growth
– Many Times These are Seasonal Items
– Historical Sales Data From Past Promotions
262626
• Fun Cast – Take 3
Theme – Why We Market
Starring:• Ms. Sallie Cauthers, DeCA/Sales – Marketing
• Mr. Mike Hatfield, S & K Sales Company
272727
• Promote In-store Sales Periods, Special Events,
Guard/Reserve On-site Sales, and Department of
Defense Partnerships.
• Generate press releases
• Coordinate campaign promotion plans
• Provide Web content
• Create social media and e-newsletter postings.
282828
• May – Family Fun Fitness Festival (Partnership with
Exchanges and MWR)
• June – Your Pet, Your Family (Industry Demos and
Pet Festivals)
• July – Farmers’ Markets (Month-long, Outdoor
Produce Markets)
• August – Back-to-School (Cross-promotion Tactics
with Exchanges)
292929
• Serve as Marketing/Creative Consultant for Special
Event Planning.
• Assists in Local Marketing of Celebrity Visits.
• Develops Radio Spots and Social Media Postings for
Large Partnerships/Community-wide Events.
• Serve as a Sounding Board on any New Ideas you
May have in Enticing Young and/or Newly-joined
Military into the Commissary.
303030
• Fun Cast – Take 4
Theme – Areas of Opportunity
Starring:• Ms. Michelle Frost, DeCA Promotions & Marketing Division
• Ms. Leah Gardner, Kraft Foods
313131
• Current State
• Mandate Package is Large/Difficult to Execute
• Manager Specials, Power Buy, Primary’s, Shippers
• Secondary's, One Time Buys, Features, Line
Extensions
• Promotional Matrix Complexity
• Opportunities
• Execute Display for Entire Display Period
• Clear Direction on Required Displays
• Patron Savings Focus
323232
• Future State
• Promotional Goals/Expectations
• Savings, Sales Potential, Display Effectiveness
• Streamlined Promotional Package
• Simplify Display Definitions and Compliance Needs
• Promotion Matrix Refinement Based on Military &
Total US Consumption Data
• Category Consolidation
• Reduction in Frequency of Promoted Categories
• Push Quantities to Stores
333333
Questions?
343434
That’s A Wrap – Thank you for attending
today’s event.