RDD Learning Academy SR Marketing Segmentation

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

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

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

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

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


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

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

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

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

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

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

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%)

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

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

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

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


Relevant Segments by
RDD Client

SR SHOPPER MARKETING CONTACTS
Carol Heyducek:
Simply Sourced & Cultural Cuisine
Deirdre McKee:
Total Store & Need Driven
Jeanette Burgos:
Easy Mealers
Shivani Shah:
Center Store

Moving aheadSR SHOPPER MARKETING implementation

Speak with your
clients
and determine which
Program(s)
fits your brands
goals and objectives
By 5/25/15
Moving aheadSR SHOPPER MARKETING implementation
Any Questions, Comments or Ideas?
Thank you for your

participation!!!


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RDD Associate Learning Academy

Enterprise-wide Training, Education & Associate-development

RDD Associates Core Leadership Strategy

Enterprise Sustainability - Laser focus on GROWING OUR BUSINESSES

FUTURE ENTERPRISE SUCCESS!

ASSOCIATE LEARNING ACADEMY?

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

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

RDD Associate Learning Academy

SR SHOPPER SEGMENTATION Key Discussion Topics

Course Overview: Definition / Purpose / Rationale

RDD Associate Learning Academy

THE RETAIL ENVIRONMENT IS CHANGING

Nobody is exclusive to anymore

RDD Associate Learning Academy

TIMELINE: DATA ANALYTICS

Evolution of data has been S L O W

RDD Associate Learning Academy

SR SHOPPER MARKETING SEGMENTS

Previous segmentation was non-additive and included the following

RDD Associate Learning Academy

SR SHOPPER MARKETING SEGMENTS

RDD Associate Learning Academy

Where do they Shop?

Trust the healthy meal solutions of prepackaged goods

Think: Working Professionals

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

RDD Associate Learning Academy

Where do they Shop?

Organized, Planning Lifestyle

Think: Working Parents & Retired

87% of oldest generation speaks Spanish at home

RDD Associate Learning Academy

Where do they Shop?

Cant resist a good price

Think: Can-Can and Value Buyer

48% have children

RDD Associate Learning Academy

Where do they Shop?

Healthy, Active Lifestyle

Think: Selective, High Quality foodie

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

RDD Associate Learning Academy

Where do they Shop?

Think: Working Parents & Retired

87% of oldest generation speaks Spanish at home

RDD Associate Learning Academy

Where do they Shop?

Think: Fixed Income

Largest Hispanic population of segments

RDD Associate Learning Academy

SR SHOPPER MARKETING : SEGMENT SUMMARY

Quick & Easy

Meat & Frozen

Behavior and attitude-driven, mutually exclusive

RDD Associate Learning Academy

SR SHOPPER MARKETING SEGMENTS

Circular presence (chain-wide and swing pages)

2015 MONTHLY EVENTS ALLOW FOR TOTAL MARKETING SUPPORT

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