Single Serve MealsAligning Feature Events Throughout the Month
Factors to Consider When Allocating 1st Half of Month Features:
₋ Government Assistance (S.N.A.P.)
₋ Category Seasonality
₋ Distribution of Sales in Month
₋ Penetration and Size
Government Assistance (S.N.A.P.)
SNAP is key reason we see increases in grocery sales during the beginning of the month
60-80% of food stamps are depleted within the first three days of the month
Government Assistance dollars are loaded at the beginning of the month
Products show a higher percent of sales with Food Stamps during the beginning of the month.
Source: Government Assistance/Food Stamps In-Depths Fusion 4/10, Retailer SNAP tender data
1st Week 2nd Week 3rd Week 4th Week
42.4%37.4%
18.0%
9.2%
% Paid for from S.N.A.P. for a Product
Government Assistance Eligible HHs are 20% of Total HHs in the Nationally…
Percentage of HHsTotal U.S. – All Outlets
GA Eligble HH20.2%
Other HH79.8%
…and Growing:Up 1.5% vs. YAGO (Over 356K new HHs eligible for Assistance)23.9MM HH in the Nationally are Eligible for Government Assistance
23.9 MM HHs
94.4 MM HHs
Other HH-134,080
GA Eligible356,645
Total HH222,565
HH Change vs. YATotal U.S. – All Outlets
+0.2%
-0.1%+1.5%
Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)
Week 1: Re-stock• What am I out of? Status of meat?• Kid/family requests• Special splurge (steak, dessert)• Any events-holiday, birthday, Superbowl?
Week 1: The week the allotment is received is their big, pantry and freezer load shopping trip
Link Card Reloaded!
First week major shop at mainstream retailer – this receipt was four feet long!
“Usually my big trip is at the beginning of the month. Within 4 days of my card
reloading. I go and get the majority of the stuff –
canned foods, meal items like Hamburger Helper.
Anything I have used since when I shopped last. I
basically try to get as much as I can with that…. By the
second week, I’ll need to get more eggs and juice. The third week, I’ll do another semi-big shopping, but not
as big as the first time.”
Source: © 2012 Fusion Marketing Power, Inc.
Weeks 2-4: Fresh and Perishable items, special requests or new sales drive shopping behavior the rest of the month
Weeks 2-4: Filler trips Re-load staples
“I had a taste for” foodsKid needs
Convenience is a
major factor for
retailer is visited
during weeks 2-4
“Toward the end of the month to grab a couple of items because it’s closer. It’s only a couple of items, so I don’t
mind spending a couple dollars more.”
Source: © 2012 Fusion Marketing Power, Inc.
Bfst Sa...
Waffl
es
Snacks
Pies
Swt G
...
Novelties
Ice Cream
Potatoes
Meat
IQF Pou...
Pln Veg
Prp Pou...
MSM
Pizza
SSM
116
105110 111
103 102 99
108 105 102
93
108104 106
101
All Frozen Categories are Not Equal with the S.N.A.P. Shopper
o Where applicable, categories such as Prepared Poultry, Breakfast, Snacks and Potatoes should be featured in the 1st half of the month
o These over-index with the S.N.A.P. shopper
Government Assistance (S.N.A.P.) Buyer Index by Frozen CategoryTotal U.S. – All Outlets
MealsComponentsDessertsBreakfast Snacks
Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)
S.N.A.P. Shoppers Over-Index in the Economy Segments
S.N.A.P. Shopper Spend Relatively More on Economy SSM
Economy is the Most Important SSM Segment to the S.N.A.P. Eligible Shopper
Of S.N.A.P. Eligible Shoppers dollar spending is Economy Meals/Pot Pies
Economy Meals
Better for You Premium Regular
Prem Pot Pies Econ Pot Pies
127
7799 95
154
Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)
Government Assistance (S.N.A.P.) Buyer Index
35%
Dollar Sales
19% More Buyers than Edible Average for Meals
Economy Meals30%
Better for You29%
Premium Regu-lar
33%
Prem Pot Pies3%
Econ Pot Pies5%
Kid Cuisine Banquet Hungryman Michelina's Marie Callender's Stouffers Boston Mkt Lean Cuisine Healthy Choice WW Smart One's
168
145 141121
99 96 9675 74 71
Economy Brands Over-Index with S.N.A.P. Shoppers
o These Economy Brands should be featured in the first half of the Month to capture S.N.A.P. dollarso Better for You indexes poorly with the S.N.A.P. eligible shopper
Government Assistance (S.N.A.P.) Buyer Index by SSM BrandTotal U.S. – All Outlets
Economy Brands Premium Regular Better for You
Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)
Capture S.N.A.P. Dollar Sales by:
₋ Featuring categories where they over-index in the 1st half of the month
₋ These categories provide convenient products at a value price such as: ₋ Breakfast Sandwiches & Waffles₋ Economy Single and Multi Serve Meals₋ Prepared Chicken ₋ Potatoes
₋ Move Economy SSM brand features to the first 2 weeks of the month₋ All 4 brands (Banquet, Kid Cuisine, Swanson and Michelina’s) over-index
with S.N.A.P. eligible homes
Sales by Month & Week
Allocate More 1st Half Features to Categories in the Key Seasonal Months
Source: IRI 52 Current 208 Weeks Ending September 23rd, 2012 (Total U.S. - MULO)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Single Serve Meals KEY KEY KEY KEY KEY KEY
Multi-Serve Meals KEY KEY KEY KEY KEY KEY
Bread KEY KEY KEY KEY
Potatoes KEY KEY KEY KEY
Plain Vegetables KEY KEY KEY KEY KEY KEY
Prep Vegetables KEY KEY KEY KEY KEY KEY
Meat KEY KEY KEY KEY
Prep Poultry KEY KEY
IQF Poultry KEY KEY
Ice Cream KEY KEY KEY KEY
Novelties KEY KEY KEY KEY
Fz Pies KEY KEY
Sweet Goods KEY KEY KEY KEY
Cheesecakes KEY KEY
Pizza KEY KEY KEY
Snacks/Appetizers KEY KEY KEY
Bfst Sausage KEY KEY KEY KEY
Bfst Sandwiches KEY KEY KEY KEY KEY
SpringWinter Summer Fall
KEY Strong SeasonalityOff-Season Categories can go into the Back Half of the Month, if not highly driven by S.N.A.P. Shoppers
Economy & Premium Show Less Seasonality than Better for You & Pot Pies
o Jan-April is the key time for Better for You segmento Summer months are slower for all SS Meal Segments
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec80
85
90
95
100
105
110
115
120
125
130
Pot Pies Premium Regular Better for You Economy
Source: IRI 52 Current 208 Weeks Ending September 23rd, 2012 (Total U.S. - MULO)
Dollar Sales Index by MonthTotal U.S. – Multi-Outlet
Stronger 1st Half Categories Categories which can Move Features to Back Half of Month
Default to Categories with Stronger Week 1 & 2 Indexes when Determining First Half Features
111 Dollar Index = 11% more dollars than average weekly sales
o Pies (111)o Snacks (110)o Prep Chicken (109)o Bfst Sandwiches (109)o Bfst Sausage (109)o Prep Vegetables (108)o Multi-Serve Meals (107)o Pizza (106)o Single Serve Meals (105)
o Novelties (97)o Ice Cream (98)o Juice (101)o Fruit (102)o Sweet Goods (104)
Lower Index equates to more equitable distribution of dollar sales throughout the month
Source: IRI 52 Current 208 Weeks Ending September 23rd, 2012 (Total U.S. - MULO)
Premium Better for You Economy
106 105109
105
100
107
100 10097
9598
939497
94
1st 2nd 3rd 4th 5th
Economy SSM Sales Skew Toward Beginning of Month
111 Dollar Index = 11% more dollars than average weekly sales
o Better for You has the most even spread across the montho Premium Regular skews early in month, but not to the extent of
Economy
Average Dollar Sales Index by Week of MonthTotal U.S. – Multi-Outlet
Source: IRI 52 Current 208 Weeks Ending September 23rd, 2012 (Total U.S. - MULO)
Use Seasonality and Volume by Week Indexes to Make the Most of Feature Ads:
₋ Featuring categories where they over-index in the 1st half of the month
₋ Keep categories with higher sales in first 2 weeks of the month features in the 1st Half₋ Breakfast Sandwiches & Waffles₋ Economy Single and Multi Serve Meals₋ Prepared Chicken ₋ Potatoes
₋ Categories with more even sales distribution throughout month can be Featured in Back Half of Month₋ Ex: Ice Cream, Novelties, Meat, Juice, Fruit, etc…₋ These categories suffer less drop in sales in Last Half₋ Can move to 1st Half in periods of strong seasonality
% HH Penetration
Single Serve Meals Remain one of the Most Important Categories in the Frozen Department…
1. Ice Cream2. Plain Veg3. Novelties4. SS Meals
(71.4%)5. Pizza6. IQF Poultry7. Seafood
…#1 in dollars, #4 in HH Penetration and #2 in trips
Dollar Sales Trips
1. SS Meals ($5.4B)
2. Ice Cream3. Pizza4. Seafood5. IQF Poultry6. Novelties7. Prep Poultry
1. Ice Cream2. SS Meals
(682MM) 3. Plain Veg4. Novelties5. Pizza6. Breakfast Food7. IQF Poultry
Source: IRI S3 Panel Data 52 Weeks Ending September 9th, 2012 (Total U.S. – All Outlets)
Drive Better Sales by Bundling
Premium & Value BFY & Value Premium & BFY
3.15.4
18.4
4.17.2
9.3
Best in Class Worst in Class Note: Bundled events occur when sub-segments are promoted with the same vehicle during the same week within an retailer
Average # of Bundled Weeks (SSM) 1
Source: 1) IRI 52 weeks ending 01/2012 2) Kantar Retail ShopperGenetics® 52 weeks ending 09/2011
Bundle Premium & Healthy to Drive Increased Sales Velocity
Bundling encourages
Shopper to buy both segments
on one trip
Source: 1) IRI 52 weeks ending 01/2012 2) Kantar Retail ShopperGenetics® 52 weeks ending 09/2011
Frozen Meal Category Spend 1
$99
Bundling drives cross-purchase and larger basket rings (+25%), putting more money in the bank
BFY & Premium Buyer
Premium Only Buyers $45
Better for You Only Buyers $34
Potential Annual Calendar
Allocate 1st Half of Month Features to:
₋ Over-Indexing S.N.A.P. categories₋ S.N.A.P. payments are generally distributed by 15th of the month
at the latest
₋ Categories with Strong Seasonality for the Month
₋ Categories with higher percentage of dollar sales in 1st Half of the Month₋ Reserve more back half features for categories whose volume is
spread more evenly
₋ Categories with High HH Penetration and Scale
Single Serve Meal Principles:
₋ Economy brands₋ Feature in 1st half of month – strong brands for S.N.A.P. consumers₋ Feature one brand per week (2 features per month)
₋ Better for You brands₋ Feature all 3 brands in 1st half of month during Diet season (Jan-Apr)₋ One brand per week₋ Bundle with a Premium brand (ex. Marie w/ H.C., Stouffers w/ Lean Cuisine)₋ Can go to Back Half during summer months₋ Move to 1st Half November/December (Holiday categories should dominate Back
Half)
₋ Premium Regular Brands₋ Same strategy as BFY
Caveat: o SSM is an important category for the health of the Frozen Department –
BFY/Premium Features would still be better in the 1st Half all year
o Move up in month if ad space is available
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Single Serve Meal Features Should be in 1st Half of Month (January)
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream Novelties
1st H
alf o
f Mon
th:
o One Economy brand should be featured each weeko Capture S.N.A.P. sales
o Better for You brand should be featured to take advantage of dieting season – all 3 brandso Bundle Premium with BFY to drive increased basket ring
o Back half of month used for out of season categories and pizza & appetizers for Super Bowl
Meat Sweet Goods & Pies
Fruit & Juices
Pizza
Snacks/Appetizers
Potatoes
Prep Chicken
Vegetables
Multi-Serve Meals
Bundle BundleEconomy
January
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Same as January except Snacks Move to 1st Half of Month (February - March)
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream Novelties
1st H
alf o
f Mon
th:
o Snacks & Appetizers moves up to 1st half of the montho Strong Seasonality and over-index with S.N.A.P.
Shoppero Continue to Feature Better for You to capture
dieting season – one brand per weeko Bundle with Premium
Meat Sweet Goods & Pies
Snacks/Appetizers
Pizza
Fruit & Juices
Potatoes
Prep Chicken
Vegetables
Multi-Serve Meals
Bundle BundleEconomy
FebruaryMarch
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Pies Move to 1st Half for Easter Holiday, MSM can go to Back Half
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream Novelties
1st H
alf o
f Mon
th:
o Economy brands to capture S.N.A.P. shoppers
o Dieting still a factor as weather warms – continue to feature the BFY brands
o Pies sell well against Easter holiday; while MSM sales drop off with warmer temps
Meat Multi-Serve Meals
Pizza
Fruit & Juices
Potatoes
Prep Chicken
Vegetables
Sweet Goods & Pies
Snacks/AppetizersBundle BundleEconomy
April
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Premium & Better for You Brand Features Can Move to Back Half of Month
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream Novelties
1st H
alf o
f Mon
th:
o Non-Economy SSM could move to back half as sales slow in summer monthso Due to size of SSM, one BFY & Premium bundle could
stay in 1st Half o Ice Cream, Novelties & Meat are seasonal in the
summer months – can move to 1st halfo Sweet Goods & Pies sales slow after Easter holiday
Meat
Sweet Goods & Pies
Pizza
Snacks/Appetizers
Potatoes
Prep Chicken
Vegetables
Multi-Serve Meals
Economy
Bundle Bundle
Fruit & Juices
May - August
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Weather Changes Increase MSM Seasonality and Decrease Ice Cream & Novelties
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream
Novelties
1st H
alf o
f Mon
th:
o With the onset of cooler weather, Ice Cream & Novelties are less seasonal and can move to Back Half
o Multi-Serve Meals sales spike up and should move to 1st Halfo Economy continues to be featured early to capitalize on
S.N.A.P.o BFY/Premium Regular can be in the back half or if ad space is
available the 1st Half (sales rebound from summer lows)
Meat
Sweet Goods & PiesCheesecakes
Pizza
Snacks/Appetizers
Potatoes
Prep Chicken
Vegetables
Multi-Serve Meals
Economy
Bundle Bundle
SeptemberOctober
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Pull SSM Features to 1st Half, Reserving Back Half for Holiday Categories
Source: IRI Current 208 Weeks Ending September 23rd, 2012 (Plains + Great Lakes - MULO)
Bac
k H
alf o
f Mon
th:
Ice Cream
Novelties
1st H
alf o
f Mon
th:
o Pizza, BFY and Premium SSM should be featured in 1st half – not seasonal to Holidays
o Keep holiday categories in Back Half o Feature desserts in the back half to align with
Holiday seasonalityo Vegetables & Meat (Holiday Meals)
o Snacks & Appetizers stay in back half for New Year’s
Meat
Sweet Goods & Pies
Cheesecakes
Pizza
Snacks/Appetizers
Vegetables
Multi-Serve Meals
Economy Bundle Bundle
Potatoes
Prep Chicken
Holiday Meals
Holiday Desserts
NovemberDecember