RDD Associate Learning Academy

Enterprise-wide Training, Education & Associate-development

RDD ASSOCIATES
Perishables Expertly Merchandised
Collaborative Partnerships Business Solutions Leadership - Breakthrough Results
1

RDD Associates Core Leadership Strategy

Enterprise Sustainability - Laser focus on GROWING OUR BUSINESSES

train, develop & reward VALUED ASSOCIATE RESOURCES build momentum to ensure

FUTURE ENTERPRISE SUCCESS!

What is RDDs

ASSOCIATE LEARNING ACADEMY?

An enterprise-wide training, education & associate -development process, that:

For every RDD position, identifies core skills, business processes /

protocols, technology enablers and best business practices / solutions
critical to delivering sales agency SERVICE EXCELLENCE
Provides a comprehensive portfolio of fundamental and advanced
training/education modules facilitating associate development and building
organizational capacity and performance

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER SEGMENTATION Key Discussion Topics

[I]
Course
Overview

[II]
Key
Elements &
Topics

[III]
Applications
&
Utilization

[IV]
Reference,
Recap &
Next Steps

Course Overview: Definition / Purpose / Rationale

Consumer Retailer Environment
Shopper Data Evolution
Wakefern Shopper Marketing Segments

Applications
PPI Example
Recap
SR Shopper Marketing Contacts
Handouts
Next Steps

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

THE RETAIL ENVIRONMENT IS CHANGING

Nobody is exclusive to anymore

Consumers shop differently in each channel
SR: Need better understanding of what consumers needs are
SR: Aggregating data to determine what is going on

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

TIMELINE: DATA ANALYTICS

Mobile Apps
1980s

Syndicated
Data
Services

2000s

1990s

Category
Management

2010s

Consumer (Shopper)
Data

Loyalty
Cards

Dig
Coupons

Evolution of data has been S L O W

What are the needs of consumers?
Dunnhumby

Kroger

CCR/EYC

Ahold

PPI

ShopRite

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING SEGMENTS

WAKEFERN SEGMENTATIONS
Changed from Demographic-based segmentations to behavioral
segmentations

Previous segmentation was non-additive and included the following

groups:
African American
Baby

Natural/Organic
Kosher
Hispanic
Family

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING SEGMENTS

The New SR Segmentation Focuses on
6 Macro and 12 Micro Segments

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

EASY MEALERS
LOOKING FOR: QUICK & EASY MEALS AND SNACKING OPTIONS

$77,500
Avg. Household
Income

Where do they Shop?

Deli, Bakery, Frozen, HBC/Non Foods show highest index
Emphasis on Foodservice, Deli Ready-Made Goods

Busy Lifestyle
No time to cook, need something easy

73% Female

Trust the healthy meal solutions of prepackaged goods

Think: Working Professionals

82%
Caucasian

40% EM are Generation X, 51% employed full time

One of the higher average household incomes
61% have no kids, 31% have 1-2

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

TOTAL STORE
LOOKING FOR: VALUE THAT MEETS ALL NEEDS

$67,300
Avg. Household
Income

Where do they Shop?

Everywhere, but especially in the Meat Department
Emphasis on Easy prep, meal making, and cooking

Organized, Planning Lifestyle

Enjoys putting meals together, trying new things
Plans trips to save money, get items at the best price

Think: Working Parents & Retired

26% Retired, 45% FT Employees

77% Female
76% Caucasian
9% Hispanic
8% African American

87% of oldest generation speaks Spanish at home

47% have children

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

CENTER STORE
LOOKING FOR: CENTER STORE AS WELL AS NONFOODS

$66,000
Avg. Household
Income

Where do they Shop?

Shops mainly center store, buying perishables elsewhere
Emphasis on Grocery & HBC

Cant resist a good price

Buys canned over fresh due to value
Plans trips to save money, get items at the best price

Think: Can-Can and Value Buyer

15% Part Time, 43% Full Time

74% Female
73% Caucasian
9% Hispanic
8% African American

48% have children

75% of Sub-Segment purchases are online

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SIMPLY SOURCED
LOOKING FOR: SIMPLE, HEALTHY, & NATURAL GOODS

$82,700
Avg. Household
Income

Where do they Shop?

Produce, Seafood, Deli, & Dairy
Emphasis on seafood and organic produce, specialty cheeses

Healthy, Active Lifestyle

Buys mostly organic and natural due to health benefits
Sees food as fuel for a healthy lifestyle

Think: Selective, High Quality foodie

60% have No kids

72% Female
72% Caucasian
6% Hispanic
4% African American

47% full time workers, 19% retired, 10% Students

39% Millennials

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

CULTURAL CUISINE
LOOKING FOR: COOKING WITH FLAVOR & ETHNIC FLAIR

$70,400
Avg. Household
Income

Where do they Shop?

Meat, Seafood, and Produce
ShopRite is their least favorite retailer (Natural, Grocery, Club)

Inspired by Cooking
Enjoys trying new flavors with cooking
Cooks from scratch since its better for you and tastier

Think: Working Parents & Retired

34% Generation Y

68% Female
74% Caucasian
6% Hispanic
9% African American

87% of oldest generation speaks Spanish at home

37% have children spread across all ages

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

NEEDS DRIVEN
LOOKING FOR: LOW COST OPTIONS TO FUEL THE FAMILY

$32,600
Avg. Household
Income

Where do they Shop?

Frozen, Meat & Grocery
Emphasis on Easy prep, meal making, and cooking

Budgeted Lifestyle
Price is leading factor, looks at circulars and stretches the dollar
Prefers heating up, no time to cook as main meal prep solutions

Think: Fixed Income

Assistant dependent

79% Female
50% Caucasian
30% Hispanic
12% African American

Largest Hispanic population of segments

57% have children, largest stay at home population (18%)
and unemployed (28%)

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING : SEGMENT SUMMARY

EASY
MEALER

TOTAL
STORE

CENTER
STORE

SIMPLY
SOURCED

CULTURAL
CUISINE

NEED
DRIVEN

Quick & Easy

Solutions

Equally
shopping
total store

Predominately
shopping center
store including
Nonfoods

Simple,
Natural, &
Healthy
Products

Incorporates
various ethnic
components in
cooking

Price Driven,
low cost
options

#2 in % Sales

#1 in % Sales

Average sales

Average Sales

Lower Sales

Lower Sales

Deli

Meat &
Frozen

Grocery

Produce &
Seafood

Meat

Meat & Frozen

23%
20%

22%
32%

20%
17%

15%
15%

11%
8%

9%
8%

% Shoppers
% Sales

Behavior and attitude-driven, mutually exclusive

Appeal to shoppers through unique triggers to increase spend
Tiered level sponsorship available for manufacturer marketing programs, tailored
to segmentation of choice

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING SEGMENTS

SEGMENTATION APPLICATION
EACH SEGMENTATION HAS YEARLY PROGRAMS THAT CAN INCLUDE:

Circular presence (chain-wide and swing pages)

Valpak
MY ShopRite Personalized Offer Event
E-Targeted Offers
New Item Launch
Demos
Social Media

2015 MONTHLY EVENTS ALLOW FOR TOTAL MARKETING SUPPORT

AND FLEXIBLE PLANNING FOR SEASONAL PRODUCTS/OFFERINGS
PROGRAM COSTS CAN VARY BY SEGMENT AND OFFERINGS

Range from $7,500-$80,000 yearly participation costs

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SAPUTO EXAMPLE: SIMPLY SOURCED

Friendship Cottage Cheese 16 oz
Bronze Program: 2014

8 additional ads (in Simply Sourced section)

April: Digital display, email, 55 cent dig coupon
May: Demos in 148 stores with a recipe handout
Targeted digital ads (on Daily Parent & Recipe Land websites)
July: Valpak offering (650K mailing recipients) & $1 digital coupon
August: Digital display, email, 70 cent digital coupon
October: Targeted digital campaign

Unit sales saw an increase of +4.9% in a declining category

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SEGMENT DATA FROM PPI

Total SR PPC's
Total SR PPC's purhased Milk
Total SR PPC's purchased A Breeze

7,677,601
4,208,297
483,792

ShopRite Marketing Segments

Summary for Almond Breeze

Center
Center
Easy
Center
Store
Store
Cultural
Mealer
ShopRite Marketing Segment Store Baby Nonedible Online
Cuisine
Aging
PPC's in Segment
111,022 1,255,650
50,502
775,902 1,054,068
Buyers (bought Milk)
65,924
636,274
35,269
371,250
628,795
PPC's who buy Alm Breeze
7,187
63,154
5,599
34,548
79,517
% Segment PPC's who bought AB
6.5
5.0
11.1
4.5
7.5
Units per PPC/year
4.1
3.3
4.6
3.1
4.1
Dollars per PPC/year
$ 16.46 $ 12.66 $ 17.69 $
11.87 $ 15.82

Easy
Mealer Need
Ready Driven
Made
Baby
644,382 61,884
317,612 27,292
32,414
2,332
5.0
3.8
3.3
3.2
$ 12.79 $ 13.09

Need
Total
Total
Driven
Simply
Simply
Total
Store
Store
Economic Sourced
Sourced
Store
Meal
Ready
Eats Committed Moderate Easy Prep Maker Made
544,182
442,269
576,170 661,849 477,216 449,386
283,101
216,100
424,213 418,918 359,261 305,337
28,968
33,579
73,794 39,727 52,694 30,279
5.3
7.6
12.8
6.0
11.0
6.7
3.1
4.6
4.4
3.0
3.8
3.1
$ 12.23 $ 17.72 $ 17.20 $ 11.76 $ 14.52 $ 11.91

Almond Breeze has an 11.5% penetration rate among all SR Price Plus Consumers (7.7MM SR PPC/0.5MM ALB PPC)

AB Brand has the highest segment penetration within the Simply Sourced Moderate Group (12.8%), followed by
Center Store Online (11.1%), Total Store Meal Maker (11.0%) and Simply Sourced Committed (7.6%)

AB purchase sizes are highest among the Center Store Online group ($17.69 spent/yr), followed by Simply Sourced
Committed ($17.72 spent/yr) and Simply Sourced Moderate ($17.20 spent/yr)

Source: Wakefern PPI

52 Weeks Ending Sep 27, 2014

RDD Associate Learning Academy
Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING SEGMENTS

Relevant Segments by
RDD Client

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

SR SHOPPER MARKETING CONTACTS

Carol Heyducek:

Simply Sourced & Cultural Cuisine

Deirdre McKee:

Total Store & Need Driven

Jeanette Burgos:

Easy Mealers

Shivani Shah:

Center Store

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

Moving aheadSR SHOPPER MARKETING implementation

Speak with your
clients
and determine which
Program(s)
fits your brands
goals and objectives

By 5/25/15
RDD Associate Learning Academy
Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance

Moving aheadSR SHOPPER MARKETING implementation

Any Questions, Comments or Ideas?

Thank you for your

participation!!!

RDD Associate Learning Academy

Expanding Skills Leveraging Thought Leadership Sharing Best Practices Building Performance