1. Trade Marketing & Category Management Introduction

2. Agenda Trade Marketing Overview Conversion Breaking through
Category Management
Know the Shopper
Organize the Beer section
Displays look of success

3. Why Trade Marketing and Category Management?
Overload Extends into POC Environments...
The same issue exists in POC environments… the number of choices for shoppers have in retail and consumers have in the on-trade has increased to record levels
Think about how many BRANDS, PACK SIZES, PROMOS, PRICE etc there are on your next shopping trip
For example in a supermarket there can be more than 50,000 choices available
Or think about how many options there are on some menus…
In these environments the reality is there is far more capacity than there is demand…

4. Brand Marketing and Trade Marketing
Radio
“Above the Line” = Mental Availability
Impact how consumers think and feel about our brands
Print/OOH
Sponsorships
Digital TV
Integrated 360°
POCM/ Packaging
“Below the Line” = Physical Availability
1) Impact how shoppers behave and interact with our brands in retail
2) Impact how consumers behave and interact with our brands while on-premise
Shopper Marketing
What we do…
SOW for TM Team
Difference btw Brand and Trade
Price /Promo
Value Adds
Customer Specifics
Sampling/Experiential

5. 360° Activation Retail and On-Trade
Trade Marketing Key Focus Areas
Shopper/ Consumer Insights
Brand Strategies
Customer Strategy
Working with the brand team we focus on ensuring the intersection of these three key areas in order to enable you to execute with excellence
360° Activation Retail and On-Trade

6. = Drive Conversion Our Trade Marketing Objective...
“Conversion” is simple way of describing our “objective” of turning shoppers into buyers of our brands/products
Said differently we focus on how to “Create Demand” for our products in POC’s
Sounds simple enough to do… but there is a significant challenge we constantly face…

7. Increasing Conversion Is Our Biggest Opportunity…
Example - in a major Quebec retailer study 79% of shoppers in the beer aisle do not purchase
Main Aisle
100%
Enter Store (1384)
99%
Pass Beer Category (1370)
19%
Enter Aisle (262) 9%
Total Interact (128) 9%
Where There Are Challenges, There Are Opportunities
Connecting with consumers and shoppers and creating loyalty is as challenging as it has ever been for consumer products manufacturers and retailers. Consider the following profile of today’s consumers and shoppers:
• 68 percent are brand switchers4
• Only 5 percent are loyal to one brand5
• 73 percent shop in five or more channels6
• Only 26 percent are loyal to an average retailer7
Study products (125) 5%
Physical Interact (74) 4%
Select (54)

8. Our Challenge = Breaking Through…
Today’s consumers are more time starved than ever and overwhelmed by a barrage of constant messaging
We are exposed to > 6000 messages a day
But we filter out 99% of these messages...
Today there is a so much choice and so many messages its literally beyond our cognitive ability to process it all
So our challenge with all this noise is to break through with our brands and be part of the 1% that doesn’t get ignored...

9. How Shoppers Make Purchase Decisions...
Rational
Objective
Logical
Analytical
Conscious
Controlled
5% Of Decision Taking Is Conscious
Emotional
Intuitive
Random
Subjective
Feelings-based
Unconscious
Uncontrolled
95% Of Decision Taking Is Unconscious
So how do shoppers/consumers deal with all the complexity, excess capacity, and choices out there?
They ignore most things they don’t need or are not looking for…
They don’t take very long to make a purchase decision its usually done in a few seconds at most…
Said differently..
We only notice what we care about
We only care about what we need
To clearly demonstrate how our minds work this way - I have a simple exercise for everyone to try

10. Accessibility is all about…
“Making our products easy to find and easy to buy”
Trade Marketing Key Initiatives
Retail
Brand Activation
On Trade
Tech Sales

11. Make our products easy to find and easy to buy through
Our Key Ask of You…
Make our products easy to find and easy to buy through
Flawless Execution
Retail
Brand Activation
On-Trade
Tech Sales
Powerplay
Coolers
Quality Shelf
Out of Category Display
Towers
POC Segmentation
Brand Assortment
Rotating Tap
Won Lost POCs
Distribution
Shelf Share
Display
Calls Per Day
POCE
Superbowl
Budweiser Hockey
Long Weekends
Sampling

12. Increase Availability, Shelf Positioning & Visibility
Maximize distribution
Win Total Share of Store
Maximize Distribution
Project Powerplay
Optimize Portfolio shelf positioning (in-section)
Assortment/Space Allocation/Balanced Portfolio/Planogram/Shelf Share
Win total share of Store (out of section)
POD
Coolers
Cross-Category Racks
Make our products easy to find and easy to buy through Flawless Execution

13. Category Management Main Missions - Support Key Account Managers
- Analyse market trends and performance
- Create and optimize planograms
- Track new products launches
Main Tools

14. Know the shopper to better guide him in store
Shopper Decision Tree
Shopper Missions
Customiz edplanog rams

15. Organize the Beer Section
1) Assortment definition
2) # of facings
3) Space allocation
Segment
Pareto
New skus
DOS calculation
Space Allocation (# facings)
Traffic/Agreements
Brand blocking
Sequence of brands

16. Multiple, critical factors are key to driving display performance
Displays Look of Success
Multiple, critical factors are key to driving display performance
Display Guidelines
Location
Pricing
Shop - ability
Quantity
Themed POS
Size
Most Effective Display Volume
Pricing
In all instances, displaying price on displays will deliver incremental beer volume sales in the POC
When a display features a price reduction, it is imperative that the price is visible!
Displays associated with a price reduction have a higher lift and generally deliver about 6% greater performance than those without price reductions
Location – in order of effectiveness, the following display locations best drive incremental sales:
1 - In-Seasonal / Promotional
Description: Large out of category display where beer is displayed with other seasonal products sold in store (ex. Summer promo with Budweiser, BBQ tools, BBQ Sauces & Spices, etc… )
2 - Lobby
Description: Open floor space located at the front of the store upon entry
3 - Aisle
Description: Displays that are located within a fixed aisle (best to be placed next to complementary product, ex. Chips)
4 - End Cap
Description: Display located on the end of a fixed aisle
Themed POS
- Themed POS helps target the undecided shopper by reinforcing the Display theme
Size
- A display’s size tailors the Display to the targeted Shopper Segment & enhances Engagement, Appeal & Purchase Intent

17. Displays Insights
Displays influence undecided shoppers and increase purchase intent
Over 50% of incremental dollars spent on beer are sold on feature displays
Displays provide an improved shopping experience for consumers
Educate and Inform
Price
Increasing the # of different segments on display within in a POC will drive incremental sales for that POC
Display shop-ability and merchandising communications enhance shopper engagement and purchase intent

18. Displays How will it help us win?
Stores with higher display support perform better!
Displays will deliver incremental beer volume sales in the POC
Provide excellent brand visibility

19. Displays Look of Success
Location
In-Seasonal/Promotional
Lobby
Aisle
End Cap
Pricing
Price must be visible
Bucket Pricing
Themed POS
Targets the undecided shopper by reinforcing the promotional offer

20. Displays Look of Success
Shop-ability
Height of Display
% of Accessible Cases
‘Un-finished Display’
Quantity
Case minimums must be met
Size
Core brands - large displays
High End brands - small/medium sized displays
Flank larger pack sizes with smaller packs

21. It is your turn to “Shoot The Puck!!!”
Development is owned by Employees,
Supported by Managers,
And enabled by the People Department.
How are you going to apply what you learned today in trade?
Make Labatt products easy to find and easy to buy EVERYDAY!