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DEFENSE COMMISSARY AGENCY
DeCA
Your Commissary … It’s Worth the Trip!
Category Management Planning & PromotionsALA Commissary Roundtable, April 1, 2015
Ms. Tracie RussDirector, Sales
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Overview
• Category Management Teams• Certification• Category Management Roadmap
– Consistent processes – Data – Scorecards
• Collaborative planning
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
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Category Management Roadmap
• Our objective for today– Inform Industry on DeCA Process and Expectations
for Collaborative Planning and Category Reviews• Panel members
– Mr. Steve Villeneuve, DeCA– Mr. Jon Sanders, DeCA– Mr. James Taylor, DeCA– Ms. KC Remick, Kellogg’s– Mr. Marc Knowles, P&G
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• Yesterday– Limited standardization – Not part of a strategic management process– Did not facilitate joint annual plan of trade funds
• Today– Standardize processes for identification:
• Strategic Growth • Assortment opportunities• Yearly promotional planning and investment • Incorporation of everyday pricing negotiation• Days of supply (in-stock)
• Tomorrow– Consistent processes for collaborative strategic planning– Scorecard for industry and category
Evolution
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Key Components of Program
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End to end process to deliver value to our ever-demanding customers
Category Management
Shopper Insights & Shopper Marketing
Planogram &
SpaceManagement
In-Store Execution&
Merchandising
•Streamline Business Process•Improve Customer Service•Utilize Technology for Information Sharing
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Standardized Practices
Category Review• Item ranker• Category performance• Line item count• Brand performance• Brand impact
Planogram Review• Item pack out• Size store
– Size 5– Size 4– Size 3– Size 2– Size 1
Templates designed to:
• Manage Strategically Product [categories] over lifecycle
• Optimize Space utilization; analyze effectiveness over time
• Leverage Business Intelligence6
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Resource Sharing
Industry
–Category / Shopper Insights
–Decision Hierarchies Segmentation
–Best Practices
– Innovation
–Merchandising Solutions
–Performance Metrics
DeCA
– Strategic role of Category
– Days of supply objectives
– Category pricing strategy
– Promotional planning
– Performance metrics
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• Ensure patron satisfaction across all categories• Identify/invest in categories that drive Patron Loyalty, Savings, Volume
How does category perform in DeCA?(The Why)
– Demographics– Shopping Occasion– Assortment– Price– Merchandising – In stock
JUICES/DRINKS-FROZEN VEGETABLES & GRAINS-DRY COUGH AND COLD REMEDIES
Category Index 2.14566980992017 2.09553459505306 0.309981635134751
0.25
0.75
1.25
1.75
2.25
Category Index
Strategic Planning
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Total United StatesPrivate Label
shopperIndex
Race of Head of Household Race: White (Non-Hispanic) 69.0% 72.3% 105 Race: Black (Non-Hispanic) 11.9% 9.6% 80 Race: Hispanic 12.5% 12.7% 101 Race: Asian (Non-Hispanic) 4.3% 3.3% 77 Race: Other (Non-Hispanic) 2.2% 2.1% 95Number of Persons 1 Person Households 27.1% 17.5% 65 2 Person Households 32.4% 33.8% 104 3 Person Households 16.2% 17.6% 109 4 Person Households 13.2% 16.0% 121 5+ Person Households 11.1% 15.0% 135Age of Head of Household Age 18 - 24 4.2% 3.1% 74 Age 25 - 34 15.1% 13.0% 86 Age 35 - 44 17.4% 18.0% 104 Age 45 - 54 20.1% 21.6% 108 Age 55 - 64 19.4% 20.6% 106 Age 65 - 74 13.2% 13.7% 104 Age 75 or More 10.7% 10.0% 93Age and Presence of Children Children Under 6 only 7.4% 7.7% 104 Children 6 - 17 only 18.5% 22.0% 119 Children Under 6 and 6 - 17 6.6% 8.0% 122 No Children 67.5% 62.3% 92
Spectra & Consumer Demographics
• Who is our shopper?
• What are they purchasing?
• Demographics
• Identify shopper opportunities in Remaining Market and All Other Channels
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Assortment/Placement
OJ AO 100% Chilled DrinksSuper
Premium
Single Serve vs. Multi Serve
Chilled Teas
FC
Segment
Brand
Form
Health Benefit
Flavor/Fortification
Size
Serving Class
Type
TPP, Trop 50, Minute Maid, Private Label, Simply, Florida’s Natural, etc.
Pulp No Pulp
Low Calorie Regular
Vitamin Fortified, No Added Vitamins/Fortification etc.
Apple, Lemon, etc.
Lemonade, fruit punch, etc.
Single Serve
54/59vs.
64 oz
89/96 oz
128 oz
Berry, chocolate,
etc.
Dole, Simply, Private Label,
etc.
Minute Maid, Sunny D, etc.
Lemon, Green, etc.
Size Size Size Size
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Space Allocation
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Bottom Line Objective
Together, we can increase sales and increase savings to our customers
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Objective: Optimize Promotional Dollars to Increase Sales and Patron Savings
– Strategy must fit category role
– Determine pricing strategy (EDLP, MEDLP, Hi/Low)
– Space and assortment depth
– Category seasonality
– Agreement for promotional performance
Annual Planning
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Promotional Planner Matrix
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Promotional Matrix Packages
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
CATEGORY:SEGMENT:
Size Strategy Dollar ShareUnit
SharePaton Savings DeCA Cost Promotion Type
Reg (EDI) Cost
Promo Price
MANUFACTURER BROKER BRAND PRODUCT DESCRIPTION UNIVERSAL PRODUCT CODE Hi low PWR BUYEDLP MGR SPEC
Modified OTB
PROMOTION PERIOD
XX
Industry Submission for Requested Promotional Plan
Optimal Period TimingPricing Strategy (EDLP, Modified EDLP, Hi/Low)
Requires Approval from Category ManagerNTT Pending
Promotional Planner & Matrix
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Promotional Evaluation Indicator
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Post Promotion Effectiveness
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
Shopper
Penetration
Buying Rate
Store Loyalty
Market Basket
Conversion Rate
Trips
Sales / Market
Volume Growth/Decline
Category Share
Private Label Share
Gaps
Promotion Effectiveness
Pricing
Distribution Speed
Productivity / Vendor
Out of Stocks
Fill Rate
Assortment
Days of Supply
Speed to Market
Scorecard in Development
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• Delivery of the Benefit
• Patron PASSION
– What the patron wants to buy
– When the patron wants to buy it
– Undeniable savings and value
Working Together
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DEFENSE COMMISSARY AGENCY
DeCA
Your Commissary … It’s Worth the Trip!
Thank You!