1. WHAT WINS THEIR WALLETS? SHOPPERS IN STORES

2. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 2 PRESENTATION SPEAKERS Nikhil Sharma VP, Consumer & Shopper Analytics, Nielsen Daniel Jenski Associate Director of Consumer Analytics, Mondelēz International #Consumer360

3. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 3 SHOPPER QUIZ % of CPG sales that occur in brick & mortar stores? 96% % of brand decisions that are made in-store? 67% #Consumer360

4. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 44 SHOPPING IS BECOMING MORE COMPLEX 24,000 NEW retail stores since 2009 50% INCREASE in SKUs in 7 years EXPONENTIAL GROWTH of product advertisement #Consumer360

5. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 5 ALL MARKETERS WANT TO DRIVE GROWTH BY OPTIMALLY SERVING THE SHOPPER However, the manufacturer and retailers mindset can be different RETAILER MANUFACTURER DRIVE GROWTH MORE INNOVATION TO ENGAGE & RETAIN SHOPPERS EXCESSIVE CHANGE MAY DISRUPT SHOPPERS SHOPPERS GOAL Optimally serve shoppers Grow sales Maximize profitability More Shoppers More Trips More Items #Consumer360

6. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 6 TECHNOLOGY CAN HELP DRIVE GREATER ALIGNMENT IN SHOPPER MARKETING GOAL Optimally serve shoppers Grow sales Maximize profitability RAPID CHANGE MEASURED CHANGE TECHNOLOGY = a KEY enabler! RETAILER MANUFACTURER #Consumer360

7. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 ENGAGE social advertising EVALUATE social listening CONSUME technology enabled consumption tracking geo-location based advertising PLACE virtual store technology, shelf imaging PURCHASE IN FACT, TECHNOLOGY IS ALREADY BEING USED EXTENSIVELY IN SHOPPER MARKETING DEMAND BUY Path to Purchase digital ethnography smartphone payment methods prior lists & recommendation services PLAN

8. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 TODAY WE WILL DEMONSTRATE HOW TWO TECHNOLOGIES ARE HELPING TO WIN IN-STORE Virtual Store Image Recognition Easier TestingBetter Execution What is it used for? What benefit does it drive? Shelf layout Pack and Price Architecture Merchandising Compliance Availability Visibility “Understand what to do in-store”“Ensure it actually gets done” 12 #Consumer360

9. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 Virtual Store “Understand what to do in-store” Easier Testing #Consumer360 1

10. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 VIRTUAL STORE TECHNOLOGY Online platform to measure in-store shopping behavior Consumers can navigate virtually Can customize any retail environment from big box to small format – traditional to Modern trade Can help optimize: price, promotion, assortment packaging, new product impact and more! Virtual Store

11. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 MONDELĒZ WANTED TO LEVERAGE VIRTUAL STORE TESTING There were many hypotheses about the cause and the possible solutions: How do we test these ideas in an efficient & cost-effective way without alienating shoppers? The multipack business for Biscuits had been decreasing for years while the multipack business for Salty Snacks had been growing Alternative pricing & promotion strategies? New Pack counts or varieties? Alternative shelf layout?

12. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 VIRTUAL STORE GIVES MONDELĒZ A ‘SAFE’ TESTING ENVIRONMENT Study Design 21 shelf sets 400 monadic (stand-alone) reads Screened for primary grocery shoppers 18-65 who purchased cookies, crackers or salty snacks in the last 6 months MDLZ Multi-pack buyers MDLZ Multi-pack non-buyers Salty Snack multi-pack buyers Moms/Dads w/kids ages 2-5, 6-12, 13-17 Included post-survey questionnaire Virtual Store Demo #Consumer360

13. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 13 WE WERE ABLE TO TEST VARIOUS SCENARIOS… 1

14. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 14 … AND QUANTIFY THE EXPECTED IMPACT Reduce unit count in an existing multi-pack product Brand Impact Category Impact Mondelez would lose 2.6 Million Units to competing brands! Our Retail Partner would sell 1.4 Million fewer Units of the category! We tested 27 such ideas … in only 12 weeks !

15. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 MONDELĒZ DEVELOPED TANGIBLE IDEAS TO REVERSE THE DOWNWARD BUSINESS TREND Consider downsize carefully Launch new sizes Don’t be too aggressive with new size promo Maintain key flavors in line Larger sizes can work on bottom shelf, but smaller sizes tend to perform better at eye level Do not include constant consumables in a multipack shelf

16. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 WE IMPROVED OUR RETAIL PARTNERSHIPS & REALIZED SEVERAL OTHER BENEFITS Quicker Relative To In-Market Testing Cheaper Relative To In- Market Testing No Need To Manufacture Test Products Able To Test Results In Mass and Grocery Formats No Inconvenience To Our Retail Partners Tested More Ideas Compared To In-Market Testing #Consumer360

17. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 THE VIRTUAL STORE TECHNOLOGY IS A POWERFUL SOLUTION TO DRIVE IMPACT AT RETAIL The Benefits: Confidential and secure Global solution Comprehensive and powerful management tool Flexible Does not disrupt retailers Less expensive and faster #Consumer360

18. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 18 Image Recognition “Ensure it actually gets done” Better Execution #Consumer360 2

19. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 EXECUTION AT RETAIL IS CRITICALLY IMPORTANT EXECUTION As an industry, we invest significantly here… … but often fall short here INNOVATIONMARKETING #Consumer360

20. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 WHAT IS REALLY HAPPENING IN STORE? ? “What you think is happening”“What is actually happening”vs. #Consumer360

21. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 IMAGE RECOGNITION TECHNOLOGY Smartphone based technology to help improve in-store execution Revolutionary technology that applies automatic image recognition to the tracking of in-store implementations Transforms digital photographs taken at the point of sale into planograms Allows you to track and evaluate the status of planogram compliance & key KPI’s such as ‘share-of-shelf’ Shelf Imaging

22. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 SHELF IMAGING ALLOWS YOU TO FIX ISSUES AT RETAIL IN A NEARLY REAL TIME MANNER “What Should We Fix?” RealAgreedDifferences “How Well Are We Doing?” Picture of Actual Shelf Planogram of Actual Shelf

23. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 A HEALTH & BEAUTY MANUFACTURER USED IMAGE RECOGNITION TO EXECUTE BETTER AT RETAIL Had significant opportunities to improve how they tracked & executed in-store Long history of being a leading innovator in the skin care category Current methods of tracking execution were sub-optimal Manually collected self reported data + Time consuming consolidation process = Long timeframe for shelf changes BUT

24. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 24 EXECUTION IMPROVED SIGNIFICANTLY RESULTING IN SUBSTANTIALLY LOWER OPPORTUNITY COST February May Stores Meeting Minimum ‘Share of Shelf’ Requirement (Indexed to 100) 35 39 +11% Improvement in Execution! What are your sales from promotions? How well are your promotions executed at retail? What could an 11% increase in promotional sales mean for your business? Food For Thought… For a brand with nearly $45MM in sales from promotions… $4.5 Million Incremental Sales Opportunity!

25. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 25 IMAGE RECOGNITION TECHNOLOGY CAN DELIVER OTHER SUBSTANTIAL BENEFITS More effective sales force deployment Lower ‘opportunity cost’ for retailers Improved shopper satisfaction Granular Data Quick Turnaround High Accuracy

26. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 26 TECHNOLOGY CAN DRIVE TANGIBLE OUTCOMES AND MORE EFFECTIVE SHOPPER MARKETING! Virtual Store Image Recognition “Understand what to do in-store”“Ensure it actually gets done” Easier TestingBetter Execution #Consumer360 12

27. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 27 IN-STORE TECHNOLOGIES CAN PROVIDE A MYRIAD OF BENEFITS Deploy at scale compared to some traditional methodsScalability Significantly improve ‘time to market’ Offer privacy against competitors Result in limited to no disruption to the shopper Cycle Time Privacy Shopper Disruption #Consumer360

28. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 28 AN ISSUE-FOCUSED APPROACH REMAINS KEY TO APPROPRIATE USE OF TECHNOLOGY Clearly identify the issue you’re looking to solve Set clear objectives/ measures of success Think through various approaches and tools Determine whether and what part technology can play in the full solution #Consumer360