1. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 1 UPCOMING WEBINARS REVENUE MANAGEMENT OPTIMIZATION – OCT. BEYOND THE MIDDLE CLASS – NOV. 7TH

2. WHY 10% OF YOUR CONSUMERS ARE WORTH 5X MORE THAN THE REST September 17, 2013 SUPER CONSUMERS

3. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 3 PRESENTATION SPEAKERS CANNON KOO Director, Analytics Kraft Foods GREG GALLAGHER Category Director Kraft Foods EDDIE YOON Principal The Cambridge Group

4. WHY 10% OF YOUR CONSUMERS ARE WORTH 5X MORE THAN THE REST September 17, 2013 SUPER CONSUMERS

5. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 5 POLL #1 Which best describes your consumer target? They drive >50% of category profit They give powerful, predictive insights They are focused, findable & easy to reach They can be easily linked with big data All of the above

6. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 6 WHAT WE’LL COVER TODAY THE VALUE OUR CLIENTS HAVE SEEN WITH THEM WHO ARE THEY? SUPER CONSUMERS WHY YOU SHOULD STOP AND TAKE NOTE 

7. WHO ARE THEY?

8. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 8 THEY MAY SEEM FAMILIAR… HEAVY USER HIGHLY INVOLVED

9. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 9 HEAVY USER HIGHLY INVOLVED BUT THEY ARE MORE POWERFUL 10% of HH typically drive 30% of sales and as much as 50% of profit SUPER CONSUMERS ECONOMICALLYEMOTIONALLY  Above average category affinity & knowledge  Shop the category more frequently & more open to marketing messages  Can articulate and anticipate what is ‘around the corner’  Over index in volume, sales & profit  Constantly looking for new products  Will pay a price premium

10. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 10 POLL #2 What concerns you about Super Consumers (check all that apply)? They seem like weird people They must be rich people They are saturated Not relevant for my category I can’t win with them I can’t find them

11. WHY YOU SHOULD STOP! AND TAKE NOTE  

12. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 12 #1—THEY EXIST EVERYWHERE Super Consumers – The Top 10% (Across 40 CPG Categories of $50B in Sales) Other Non CPG : Air Travel Restaurants 9% 44% = 5% 24% = Consumers Revenue

13. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 13 #2—THEY CAN FIX MARKETING MYOPIA They Address the Pitfalls of ‘Marketing Myopia’ Harvard Business Review All Melted Cheeses Velveeta They Help Define the Best Frame of Reference For example, for Velveeta …

14. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 14 #3—THEY ARE SUPER HEROES IN PLAIN SIGHT SUPER SENSES STRONGERFASTER …AND WE CAN FIND THEM MUCH EASIER THAN EVER VIA BIG DATA

15. SUPER CONSUMERS VALUE FOR KRAFT

16. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 16 THE SUPER CONSUMER FACT-BASE The Economics of Super Consumers Top 10% of Category HH’s ~30% of category sales ~50-60% of category profit ~10% ~50-60% ~40% of category growth ~40%~30% Illustrative

17. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 17 BUSTING MYTHS I can’t win with them Already saturated in the category Weird people with an unnatural obsession Rich consumers with money to throw around

18. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 18 SUPER CONSUMERS ELEVATED VELVEETA PROFIT POTENTIAL HIGHER LOWER GROWTH POTENTIAL Impact of SUPER CONSUMERS

19. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 19 THEY MADE US RETHINK… THE FRAME OF REFERENCE NEW PRODUCT DEVELOPMENT GO-TO MARKET STRATEGY

20. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 20 SUPER CONSUMERS IMPACT KRAFT ANALYTICS 0% FOCUS ON SUPER CONSUMERS 90% FOCUS ON SUPER CONSUMERS AFTER BEFORE TODAY KRAFT IS AN INDUSTRY LEADER, IDENTIFYING TRENDS AS THEY HAPPEN 4 MONTHS

21. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 21 SUPER CONSUMER: EXPAND ACROSS RESEARCH TYPES IDENTIFYINGTESTINGTRACKING

22. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 22 THEY CHANGED HOW WE EVALUATE INNOVATION A (Total Consumers)(100) Overall Purchase Intent (%) Definitely Would Buy70 Probably Would Buy25 Might or Might Not Buy2 Probably Would Not Buy2 Definitely Would Not Buy1 (Favorable Consumers)(82) Claimed Trial Units2.5 25 Claimed Trial Frequency (pre use) Concept A $5.99* Super Consumers SIMPLE AUGMENTS TO EXISTING PROCESSES CAN TURBO CHARGE IMPACT FOR EXAMPLE: …SUPER CONSUMERS MAY CHANGE YOUR VIEW ON INNOVATION OPTIONS/ACTIONS

23. WHAT’S NEXT?

24. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 24 SUPER CONSUMERS – TODAY AND TOMORROW Preliminary TODAYTOMORROWINTERIM Dictated by Demand

25. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 25 5 KEY QUESTIONS THAT CAN BE ADDRESSED TODAY Kraft\KHC0004 Phase 1 Findings v3.pptx 1. How valuable is an incremental 1% HH of Super Consumers? 2. Why do Super Consumers buy disproportionately more? 3. What do Super Consumers buy? Products? Brands? Price tiers? 4. What is your current share with Super Consumers? 5. What is the ROI of winning 1% point of Super Consumers?

26. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 26 R&D & PRODUCT INNOVATION IS IN THE WORKS SUPER CONSUMERS => 50% They view the category as not just food, but as entertainment and education => 10% Focus marketing dollars Pull back on trade promotion Focus on closing distribution gaps MARKETING $ HIT SUPER CONSUMERS TRADE $ HIT SUPER CONSUMERS TOTAL POINTS OF DISTRIBUTION GAP WITH KEY SUPER CONSUMER MARKETS SUPER CONSUMERS CATEGORY A RESOURCE ALLOCATIONKEY DECISIONS FACT-BASE PERFORMANCE Preliminary

27. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 27 POLL #3 What would be most helpful (check all that apply)? More client case studies More Super Consumer articles A Super Consumer book Super Consumer data/analytics products Super Consumer strategy workshops

28. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 28 STAY PART OF THE CONVERSATION! We’ll register you as part of our Super Consumer Circle by emailing us at superconsumers@thecambridgegroup.com Be among the first to see the latest in research, trends and RESULTS that we are realizing with Super Consumers Gain easy access to the next 2-3 Harvard Business Review blogs, articles and potential books Engage with our Super Consumer thought leaders to ask questions, and make suggestions for improvements Join Us! For a Nielsen Twitter Chat on Friday, September 20th at 12:30pm EST. Submit questions to @EddieYoonTCG. Search for #NielsenChat to follow the discussion

29. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 29 THANK YOU! Q&A If you have follow-up questions or want more information, please contact your Nielsen Professional Services rep If you are not a current Nielsen client, please contact us Phone:800-553-3727 Email:superconsumers@thecambridgegroup.comsuperconsumers@thecambridgegroup.com OR, if you have any questions regarding the content of this webinar, you can also contact: Eddie Yoon, email: eyoon@thecambridgegroup.comeyoon@thecambridgegroup.com Other Nielsen Contacts:dennis.moore@nielsen.comdennis.moore@nielsen.com