CROSSMARK_OXXO-RAC_Final v022815

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 1

RETAIL BEST PRACTICES

[A l e x a n d r o s L . S i s k o s ]

MARCH 2, 2015

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 2

• At CROSSMARK, he oversees:

– Category & Shopper insights and

analytics

– Consumer & Marketing insights and trends

– Analytics Strategy & Innovation

ALEXANDROS L. SISKOS

VP of Analytics & Insights Group

• He has 21+ yrs of experience in the designing, building, implementing, executing, and consulting of

- Business Intelligence and

- Category Management functions

• Across Retail, CPG and market research firms.

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 3

PRE-PURCHASE

PLACE OF PURCHASE

POST PURCHASE

SALES & MARKETING AGENCYHeadquartered in Plano, TX with offices throughout the U.S., Canada, Mexico, Australia, and New Zealand

Retailer

ConsumerBrand

Shopper

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 4

WHERE TO PLAY?

Everyday Plaza Strategies & Tactics

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 5

WHERE TO PLAY?

Everyday Plaza Strategies & Tactics

HOW TO WIN?

Tira a gol!

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MEXICAN HOUSEHOLD PREFERENCES

CHANNEL GROWTH C-STORE GROWTH HOMES REACHED IN 2014

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Convenience

Drug

Supermarkets $2MM+

Dollar Stores

Mass Merch

Supercenters

Warehouse Clubs

US RETAIL IS REDESIGNED FOR NEW TIMES

slower growth » smaller box » more consumables

U.S. Store Counts in 2014 vs Prior Year

Value & Convenience

69% + of

growth from

niche formats

Source: Nielsen TDLinx

2014

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 8

A QUICK SNAPSHOT

U.S. C-Store Facts & Figures

8%10%11%16%18%37%

3.5 minutes to complete a purchase

$695B in sales (2013 w/fuel $491.5b)

2.2M employees ($174.5b in US taxes)

4.0% of the $17.4 trillion U.S. GDP

Source: National Association of Convenience & Fuel Retailing

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 9

WHAT IS HAPPENING AROUND C-STORE

1/xth the size of the most common prototype

Source: Nielsen & Kantar Retail

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SMALLER CONCEPTS | SMALLER MARKETS

Source: Nielsen & Kantar Retail

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SHAKING UP THE BOX

Strategic location of promotion and pricing

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2 m (3.2k)

4 m (6.4k)

5 m (8k)

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CAN YOU GUESS THE RETAILER?

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YOU CAN BELIEVE THIS…

First destination for shopper at c-stores

N=643,724 C-Store Patrons

12% 12%

11% 10% 10%

6%5% 5% 5%

Fountain Drinks

Salty Snacks

WaterSweet Snacks

CandySports Drinks

Soft Drinks

Hot Beverages

Food Service

Source: VideoMining Corp.

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OR…YOU CAN BE A SHOPPING TRIP DESTINATION

CONVENIENCE TASTE/VARIETYSNACKING

INDULGENCE INGREDIENTSPREPARATION

FRESH/ORGANIC CONSUMER ELECTRONICS & SERVICESHEALTH & WELLNESS

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 17

OR…YOU CAN BE A SHOPPING TRIP DESTINATION

CONVENIENCE TASTE/VARIETYSNACKING

INDULGENCE INGREDIENTSPREPARATION

FRESH/ORGANIC CONSUMER ELECTRONICS & SERVICESHEALTH & WELLNESS

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 18

OR…YOU CAN BE A SHOPPING TRIP DESTINATION

CONVENIENCE TASTE/VARIETYSNACKING

INDULGENCE INGREDIENTSPREPARATION

FRESH/ORGANIC CONSUMER ELECTRONICS & SERVICESHEALTH & WELLNESS

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 19

OUR GREATEST ENEMY – OUT OF STOCKS

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NEXT WORST ENEMY

Forgetting the basics

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JUGADOR

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HOW TO WIN?

Plaza-able >> Plaza-Jugador >> Plaza-GOL!

Organized

Consistent

Entertaining

Buzz-worthy

MEASURABLE

Competitive

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DON’T MISS OUT

ON THE BASICS

Daily needs like Hot Tortillas

should be ALWAYS in-stock

.

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IN-STOCK, BUT STRATEGICALLY

PLACED

Be mindful of where the

customer expects to find it

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 25

USE THE RIGHT LEGO

Sell to the need, not your

perception of the need

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EVERYTHING COMMUNICATES

Clean, organized and in business

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Without order Adjacencies without strategy

WATCH HER SHOP

There is a pattern in what

she does

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“ZONES” IN STORES REMIND & DELIGHT HER

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INVENTORY CONTROLS

Add, delete, move the product out

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Situation

• Mondelez needed FASTER speed to shelf

in the challenging C–store channel

Solution

• Execute “80 in 8”. 80,000 stores in 8 days!

Success

• Reached 80,102 stores in 8 days

• Gained 177,516 new points of distribution

• Nearly 50,000 displays placed; over 46,000 boxes of gum ordered at retail and shipped into stores

“Thank you to all… neither sleet, nor rain, nor snow nor POLAR VORTEX will keep our teams from executing with EXCELLENCE! Great job and I look forward to seeing the final numbers!”

– Don Quigley

President, US Sales

Mondelez International

SPEED TO SHELF

Win every new item launch

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NOT ENOUGH! LET’S DO 100,000+ STORES IN 10 DAYS

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FRESH, CLEAN AND

ORGANIZED

Execution is paramount in fast food

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SKY IS THE LIMIT

Buc-ee’s proved this point to large chains in the US

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TAILOR TO THE

LOCAL DEMAND

Catering to higher

income customers

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PROMOTION - CREATE ANOTHER SELLING OPPORTUNITY

Situation:– Targeted retail stores around the top

200 Colleges

Solution:– Incentivized to create the most unique

display

– 1-page sell sheet to drive incremental sales and displays through hyper-local programming

Successes:

– 400+ Displays Built

– 7,118 Product Packed out

– 105k Cases Sold

Chobani Back-to-School Snack Attack

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Freestyle Dispenser

LEVERAGE YOUR

VENDORS

They have

something for you

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SIMPLE & AFFORDABLE HYPERLOCAL TACTICS

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LEVERAGE THOSE VENDORS EVERYWHERE!!

7-Eleven partner promotions

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CONNECT WITH THE

COMMUNITY

Support a cause

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 40

EL CAMBIO - PON A CALENTAR A TUS SUSTITUTOS

¡¡Test and learn like a mad-person!!

Apartment complexesOffering alternatives for handicap accessibility

College CampusesOhio Northern University

Source: Nielsen & Kantar Retail

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OUT OF STORE

MOBILE

SOCIAL/DIGITAL

IN STORE

CONSUMER

WORD OF MOUTH

PURCHASE

LA AFICIÓN

STAY CONNECTED: BE IN STEP WITH CONSUMERS EVERY STEP OF THE WAY

/U B I Q U I T O U S360º

C O N T I N U O U S24/7

D Y N A M I C<:60/

TRADITIONALADVERTISING

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 42

Innovation can and should come in all shapes/sizes. It is not only “products,” it is also “process,” smart, repeatable process.

INNOVATION IS EVERYONE’S RESPONSIBILITY

CREATE ACTIVATE ENGAGE MEASURE

YOU are the key to keeping OXXO ESSENTIAL!

Don’t keep your ideas to yourselves!

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 43

SAS EUCARISTW

C R O S S M A R K M A R K E T I N G S O L U T I O N S G R O U P 44