ConAgra deck 6-25-13

6-25

-13

June 27, 2013

Instant Combo Savings®

• grows private brands together with national brands • drives trial on private brands • delivers guaranteed display support of 75%+

•   ConAgra Private Brands Goals/Strategies

•   ICS Program Overview

•   Potential ConAgra Program

•   Recommended Plan of Action and Budget

•   Next Steps

•   Appendix A – Measuring Success

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Agenda

ConAgra Private Brands Goals/Strategies

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ConAgra Private Brands Goals/Strategies

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•   Utilize classic CPG marketing tactics to grow CA Private Brands household penetration, trial and loyalty

•   Leverage category affinities of CA Private Brands with CA National Brands

•   Deliver programs to offset any potential volume losses during Private Brand transition

•   Develop plans to start effective program implementation as soon as possible

ICS Program Overview

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ICS Overview - Program Details

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•  Buy National Brand, get complementary, non-competing Private Brand FREE*

•  Combo Displays with signage •  Savings delivered instantly at checkout •  Tied into Retailer’s ad week •  Runs in conjunction with planned TPRs •  Announced in Retailer’s weekly circular,

website and mobile app •  Category exclusivity •  Retailers currently in network: •  Pilot Test: Safeway (1,441 stores)

* As an alternative, you can partner with perimeter department items from produce, deli, bakery, meat, dairy, etc.

ICS Overview - Program Results*

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•   Display support averages 84% •   NB rate of sale off display is 63% greater than NB display without Combo Offer •   NB volume lift is 2.5 times previous NB display & feature promotions •   NB cost per unit moved is lower than other coupon programs •   PB sells 3 weeks of volume

ICS display Normal display

* Syndicated data and store data

Potential ConAgra Program

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1.  ConAgra Private Brands partnered with ConAgra National Brands

Examples: •   Granola Bars / Orville Redenbacher’s

•   Fruit Snacks / Snack Pack or Chef Boyardee •   Lasagna or Pasta / Hunt’s Tomatoes or Hunt’s Pasta Sauce •   Frozen Waffles or Pancakes / Banquet Brown ‘N Serve Sausages

•   Pie Crusts / Reddi-Wip

•   Frozen Potatoes / Banquet Chicken

•   Bakery Cookies / Swiss Miss

Potential ConAgra Program – 4 Types of Combo Offers

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2.  ConAgra Private Brands paired with other ConAgra Private Brands Examples: •   Fruit Snacks / Peanuts •   Pancake Mix / Syrup

•   Peanut Butter / Jelly

•   Dinner Rolls / Pie Crusts


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3.  ConAgra Private Brands partnered with non-ConAgra National Brands Examples: •   Pretzels / Coca-Cola •   Mayonnaise / StarKist Tuna

•   Pita Chips / Tribe Hummus

•   Corn Chips / Pace Salsa

•   Breakfast Bars / Ocean Spray Cranberry Juice Drinks


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4.  ConAgra Private Brands partnered with perimeter departments Examples: •   Pita Chips / Deli Meats

•   Cereal / Strawberries

•   BBQ Sauce / Meat


Potential ConAgra Program – Developing Winning Combos

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•   Support targeted demographics, eating occasions, and meal solutions to maximize brand equity.

•   Leverage CPG shopper insights and affinity data.

•   Lead the shopper to an intuitive decision to buy both items together.

•   Represent joint display opportunities.

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Potential ConAgra Program

•   We recommend 4-5 offers per program •   ConAgra Private Brand is offered for FREE

Potential ConAgra Program – Additional Elements

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1.  Pre-Announcements

2.  Bonus Offers

3.  Continuity/Loyalty Offers

4.  Additional Trial Offers

•   Catalina Pre-prints delivered to targeted households one week before program

•   Sunday FSIs, ADVO and Market Radio are other options

Potential ConAgra Program – Pre-Announcements

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•  Encourage shoppers to purchase all four “free” offers

•  Instant Cash is an alternative to coupon

Potential ConAgra Program – Bonus Offers

Announced in the circular and on display signage

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Potential ConAgra Program – Bonus Offers

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•  Opportunity to tie-in with ConAgra Platform Programs

•  Tailgating ($10 instantly off meat purchase) •  Child Hunger

•  “Get One, Give One”

•  When consumer purchases all four offers, matching free items are donated to Food Banks

Potential ConAgra Program – Continuity Offers

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1.  Continuity

Example: •   Granola Bars “free offer” redemption

generates Granola Bars “next purchase” coupon from the Catalina printer


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2.  Continuity + Trial


generates Granola Bars “next purchase” coupon plus additional coupon on other PB item, for example Pretzels


3.  Continuity + Portfolio Trial


generates Granola Bars “next purchase” coupon plus a coupon for $5 savings when purchasing three specific ConAgra Private Brand items

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Recommended Plan of Action and Budget

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Recommended Plan of Action & Budget

1.  Test Program

2.  Medium-size Program (approx. $5MM)

3.  Large Program ($30MM-$50MM)

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Test Program •   Single event across current four retailers:

Investment •   $60/store per offer

•   Estimate $30/store redemption per offer

•   Plus Cost of Pre-Announcement, Bonus and Continuity Elements

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Medium Program •   Assumes 10 programs annually with current four retailers

•   Details in ConAgra Worksheet on next page

Large Program •   Expansion of program across the ConAgra National Account Group:

•   Details in ConAgra Worksheet on next page

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ConAgra ICS Program Worksheet

Accounts OffersTotal

NetworkStores

AnnualPrograms

Par7cipa7onCost/Offer/Store*

TotalPar7cipa7on

Costs

Bonus,Con7nuity&

Pre‐AnnoucementCost/Offer/Store

TotalBonus,

Con7nuity&Pre‐Announcement

Costs

TOTAL**

TESTPROGRAM

4NEAccounts 4 1,469 1 $90.00 $528,840 $33.45 $196,552 $725,392

MEDIUM‐SIZEPROGRAM

4NEAccounts 4 1,469 10 $85.50 $5,023,980 $33.45 $1,965,522 $6,989,502

LARGEPROGRAM

4NEAccountsplus7additonal

Na=onalAccounts***4 8,955 10 $85.50 $30,626,100 $33.45 $11,981,790 $42,607,890

*Theseprojec=onsincludees=matedredemp=onliability**Theseprojec=onsdonotincludeanycontribu=onfromConAgraNa=onalBrandswhichwouldreduceinvestmentbyConAgraPrivateBrands***7Addi=onalNa=onalAccountsareSafeway,Kroger,Meijer,Publix,H‐E‐B,Giant/Eagle,Target

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Next Steps

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Next Steps

•   Determine budget, number of events, timing, and retailers

•   Prioritize and identify CA Private Brands and CA National Brands

for participation

•   Develop offers using Insights and Affinity data

•   Secure commitment from CA National Brands

•   ICS executes implementation plan

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1.  Volume

2.  Lift

3.  Redemption

4.  Cost/Unit Moved

5.  Display Compliance

6.  Rate-of-Sale Off Display

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Appendix A

PPE/Data Insights & Analysis - Promotion Results

Using Club Card data, we will review households that purchased the combo offers. These consumers will be segregated into two groups:

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Appendix A

PPE/Data Insights & Analysis - Change in Purchase Behavior

1.  First-time buyers of the Private Brand •   Trial rate resulting from offer •   Retention rate – six months later

2.  Previous buyers of the Private Brand •   Measure share of purchase requirements

•   Measure up front •   Measure six months later

•   Segregate into three subgroups •   High Share (75-100% of purchase requirements) •   Medium Share (25-75% of purchase requirements) •   Low Share (1-25% of purchase requirements)

3.  We will also look at changes in purchase requirements for Previous Buyers who did not participate in the free offer

4.  Additional analyses for categories that promote multiple times to understand effect over time

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Appendix A

PPE/Data Insights & Analysis - Change in Purchase Behavior (cont.)

1.  Promotion Results - will be measured via Retailer Data (no cost to ConAgra) and via Syndicated Data supplied by ConAgra

2.  Change in Purchase Behavior – will be measured via Shopping Cart data purchased from a third source

3.  Technology Solutions will be utilized to facilitate data/insight mining

4.  Pass-through of costs for any data purchased

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Appendix A

PPE/Data Insights & Analysis - Analytics

Instant Combo Savings 182 Howard Street, #005 San Francisco, CA 94105 T (415) 788-3838 ext. 110 F (415) 366-8220 www.InstantComboSavings.com

Instant Combo Savings®

• grows private brands together with national brands • drives trial on private brands • delivers guaranteed display support of 75%+

ConAgra deck 6-25-13

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