222 Focus of Today’s Breakout Session What DeCA and Industry are Doing Well Mike Pfister, Maryanne Sullivan, Tim Brown and Tom Fehily Why we Promote? Charlie Dowlen and Ron Maxey Why Marketing? Sallie Cauthers and Mike Hatfield Areas of Opportunity Michelle Frost and Leah Gardner

333 Did Someone Say Fun??????? Lights Camera Action

444 Fun Cast – Take 1 Theme – What we are Doing Well Starring Mr. Michael Pfister, DeCA/Store Operations Ms. Maryanne Sullivan, Advantage Sales

555 DeCA and Industry do a Good Job of Partnering to Execute Published Promotional Plans 1.Display Compliance 2.Display Activity - Ensuring Enough Inventory is on Display to Meet Patrons Needs -Full End Caps From Start to Finish -Mass Displays

666 JAN-SEP 2011OCT 2011NOV 2011DEC 2011JAN-FEB % 87.5% 84.8% 81.7% POWER BUY 82.0% 76.1% 74.7% 73.1% 71.8% PRIMARY 84.7% 83.6% 78.1% 77.0% 75.1% MANAGER SPECIAL 79.0% 75.6% POWER BUY FROZEN 70.0% 65.3% POWER BUY REFRIGERATED Source: CommEx Post Re-Org Improvements

777 Why Focus Items Matter…. Power Buys, Manager Specials and Primaries Account for: 4.3% of the Items in the Promo Package, and 21% of the Promo Package Dollar Sales Source: Empower IT

As compliance on the focus items has increased, so has their $ contribution to Grocery Why execution on focus items matters…. Focus Items Compared to Total Grocery

999 DeCA and Industry doing a Good Job of Partnering to Execute Published Promotional Plans: DISPLAY ACTIVITY!! 1.Keeps Product in Stock and Available for Duration of Display Period. 2. Creates a “WOW” Factor to Enhance the Shopping Experience. = Execution at its Finest

Mass Display Creativity (Themed)

21 Compliance + Display = Execution 1.Greater Patron Savings Sell More/ Save More 2.Greater Overall Sales Performance & Sales Lift On Average 30-50% 3. Executed Promotional Plans Generate Opportunities for Additional Manufacturer Funds!! $$$$$$$$$$$$$$

22 Fun Cast – Take 2 Theme – Why we Promote Starring: Mr. Charlie Dowlen, DeCA/Sales – Promotions Mr. Ron Maxey, Procter & Gamble

23 Deliver the Promise of the Lowest Price to Military Patrons! Promotional Differences: DeCA vs Retail –Non-Profit vs Profit –Number of Mandated Items Promoted Every Month –DeCA: 124 items (Managers Specials-Power Buys-Primary) Average Per Mandated 2 Week Period (250/month). –Retail: On Average Retail will have 500 Mandated Items Promoted each Month. Many Different Types of Promotions- - Hourly, Daily, Weekend, Weekly, Bi-Weekly, Monthly. Displays Change Often at Retail. –Challenges Loss Leaders Cannot Market to the Highest Bidder

24 Why the Same Items all the Time? –Top Selling Items (Destination Categories) Drive Promotional Frequency. –DeCA Items Selected are on Similar Timing as Retail. –DeCA Follows a Promotional Matrix by Category Which is Reviewed Annually Matrix Example: CANNED/BOTTLED FRUIT Based on Sales Canned/Bottled Fruit will not be Promoted May-June or July.

25 Why are there Mandated Qty’s/How are They Arrived at? –Top Selling items/Categories – (Examples: Snack--Laundry Detergent) Drive Category Growth –Many Times These are Seasonal Items –Historical Sales Data From Past Promotions

26 Fun Cast – Take 3 Theme – Why We Market Starring: Ms. Sallie Cauthers, DeCA/Sales – Marketing Mr. Mike Hatfield, S & K Sales Company

27 Promote In-store Sales Periods, Special Events, Guard/Reserve On-site Sales, and Department of Defense Partnerships. Generate press releases Coordinate campaign promotion plans Provide Web content Create social media and e-newsletter postings.

28 May – Family Fun Fitness Festival (Partnership with Exchanges and MWR) June – Your Pet, Your Family (Industry Demos and Pet Festivals) July – Farmers’ Markets (Month-long, Outdoor Produce Markets) August – Back-to-School (Cross-promotion Tactics with Exchanges)

29 Serve as Marketing/Creative Consultant for Special Event Planning. Assists in Local Marketing of Celebrity Visits. Develops Radio Spots and Social Media Postings for Large Partnerships/Community-wide Events. Serve as a Sounding Board on any New Ideas you May have in Enticing Young and/or Newly-joined Military into the Commissary.

30 Fun Cast – Take 4 Theme – Areas of Opportunity Starring: Ms. Michelle Frost, DeCA Promotions & Marketing Division Ms. Leah Gardner, Kraft Foods

31 Current State Mandate Package is Large/Difficult to Execute Manager Specials, Power Buy, Primary’s, Shippers Secondary's, One Time Buys, Features, Line Extensions Promotional Matrix Complexity Opportunities Execute Display for Entire Display Period Clear Direction on Required Displays Patron Savings Focus

32 Future State Promotional Goals/Expectations Savings, Sales Potential, Display Effectiveness Streamlined Promotional Package Simplify Display Definitions and Compliance Needs Promotion Matrix Refinement Based on Military & Total US Consumption Data Category Consolidation Reduction in Frequency of Promoted Categories Push Quantities to Stores

33 Questions?

34 That’s A Wrap – Thank you for attending today’s event.