1 District 6 April 16, 2009 By: Melissa VanderMel (Customer Sales Executive) Meghan Krivoshein...
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Transcript of 1 District 6 April 16, 2009 By: Melissa VanderMel (Customer Sales Executive) Meghan Krivoshein...
1
District 6
April 16, 2009By:
Melissa VanderMel (Customer Sales Executive)
Meghan Krivoshein(District Manager)
Jim Morrison(Retail Sales Representative)
2
Agenda
Why Confection?
Business Review
Grow profit and sales with Hershey’s exciting Q2 promotions
Fun contest with prizes
Questions
3
Why Confection?
4
Confection is a large Category at Hannaford Ranking in the top 20
DSS: YTD 11-12-2008
5
Confection consistently outperforms top edible categories in recession years
-4
-2
0
2
4%
Win
e
Con
fect
ion
Cookie
s
Cra
ckers
Salt
yS
nack
s
Beer
Soup
Bott
led
Juic
e
Cold
Cere
al
Carb
Bev -2
-1
0
1
2%
Con
fect
ion
Cra
ckers
Beer
Salt
yS
nack
s
Bott
led
Juic
e
Soup
Win
e
Carb
Bev
Cookie
s
Cold
Cere
al
Source: IRI FDMx 52 weeks ending 12/2000 and 12/2003
Dollar Percent ChangeTop 10 Edible Foods in 2000
Dollar Percent ChangeTop 10 Edible Foods in 2003
6
Confectionery Delivers High Profitability Driven By High Gross Margin
Confectionery margins are 3-5% points higher
Source: DHC Analysis of Retailer Data
% Gross Margin
27%30%
Confectionery Grocery Average
7
Confectionery Is Among Most Frequently Purchased Categories In Stores
Source: ACNielsen HomeScan
Frequent purchases make it key to retailers
Annual Purchases
15
12
11
7
31
30
22
16
Coffee
Soup
Cookies
Bottled Juice
Cereal
Confectionery
Milk
Carb. Bev.
8
Candy Is The Most Responsive Category For Display Treatment
Source: IRI, Food, 2005
% Increase On Display Only
88%
68%
61%
49%
169%
105%
95%
95%
Beer
Spices/Seasoning
Wine
Salty Snacks
Bottled Water
Carb. Beverages
Cookies
Candy
9
Confectionery is Expandable – Not a Zero Sum Game
Source: Dechert-Hampe & Co.
Fixed Consumption Expandable Consumption
Consumption
weeks
PurchasingConsumption
weeks
Purchasing
Consumption at fixed rate
Soap, Detergent, Toilet Paper
Promotion Loads Pantry
Consumption Driven by Purchase
Candy, Snacks, Beverages
Promotion Builds Consumption
10
See Candy, Buy Candy, Eat Candy…buy more candy
See Candy
Buy Candy
Eat Candy
Buy Candy
11
Consumers Often Have A Special Relationship With Confectionery
Source: Dechert-Hampe & Co.
“It makes me happy, when I’m feeling blue”
“It’s a little pick-me-up when I need some energy”
“I feel I’m a better person when I have my candy”
“I hide candy. I keep my own stash – the good stuff”
“The holidays wouldn’t be the same without the candy”
12
Business Review
13
Hershey is larger than the next three manufactures at Hannaford
Source: IRI 52 Week Ending 12-28-2008
14
Top 4 Packtypes represent 62% of Hannaford’s C.G.M. Business with Hershey being share leader in all 4.
IRI Hannaford RMA 52 wks ending 12/28/08
Hsy share 42%
Hsy share 17%
Hsy share 44%Hsy share 57%
15
YTD March 22, Easter timing is driving total dollars down. However, Hannaford declines are greater than market.
Dollar % Chg vs. LY
IRI, YTD 3-22-2009
16
Easter is driving YTD dollars down due to the timing of Easter falling on March 23rd LY
Other 1.7%
0
20
40
60
80
100%
Dollars
Easter 8.6%
Valentines 13.6%
Non-Seasonal 76.1%
$11,308,800
$228,424
-$185,794
-$1,541,978
Dollar Chg
IRI, YTD 3-22-2009
Hannaford Total CMG Dol Share & Dol ChgHannaford RMA; YTD we 3/22/09
17
There’s an opportunity to increase Candy, Gum and Mint sales with Hershey’s in District 6
DSS Hannaford YTD w/e 3/28/09 Hershey
Last 52 LY Last 52 TY % +/ -
Overall Result $ 17,685,493 $ 17,235,435 -2.5
DISTRICT 3 $ 1,484,952 $ 1,418,646 -4.5
DISTRICT 8 $ 1,459,178 $ 1,409,544 -3.4
DISTRICT 10 $ 1,439,888 $ 1,376,417 -4.4
DISTRICT 4 $ 1,379,031 $ 1,354,217 -1.8
DISTRICT 2 $ 1,344,734 $ 1,328,476 -1.2
DISTRICT 1 $ 1,302,958 $ 1,274,354 -2.2
DISTRICT 9 $ 1,264,598 $ 1,265,334 0.1
DISTRICT 6 $ 1,259,451 $ 1,186,960 -5.8
DISTRICT 7 $ 1,239,906 $ 1,182,238 -4.7
DISTRICT 19 $ 1,194,318 $ 1,132,710 -5.2
DISTRICT 18 $ 1,031,395 $ 1,123,642 8.9
DISTRICT 13 (Independents) $ 815,317 $ 865,297 6.1
DISTRICT 21 $ 790,207 $ 766,547 -3.0
DISTRICT 22 $ 825,108 $ 761,254 -7.7
DISTRICT 20 $ 778,481 $ 742,121 -4.7
DISTRICT 23 (Dover #242) $ 17,900 $ 47,678 166.4
18
District 6 Hershey’s sales by store
DSS Hannaford YTD w/e 3/28/09 Hershey
Store # Last 52 LY Last 52 TY % +/ - Hershey Rep DistrictTotal $ 17,685,493 $ 17,235,435 -2.500149 $ 62,253 $ 53,778 -13.6 KRISTINA GOUGOUSHEVA DISTRICT 6
00159 $ 91,573 $ 91,176 -0.4 BETHANY KUCHARIK DISTRICT 6
00160 $ 76,432 $ 76,281 -0.2 JAMES MORRISON DISTRICT 6
00247 $ 76,320 $ 87,743 15.0 TIMOTHY KEEFE DISTRICT 6
00248 $ 130,355 $ 117,961 -9.5 TIMOTHY KEEFE DISTRICT 6
00253 $ 0 $ 17,672 0.0 TIMOTHY KEEFE DISTRICT 6
00314 $ 109,362 $ 109,518 0.1 TIMOTHY KEEFE DISTRICT 6
00315 $ 107,309 $ 96,593 -10.0 JAMES MORRISON DISTRICT 6
00317 $ 137,434 $ 116,213 -15.4 JAMES MORRISON DISTRICT 6
00318 $ 87,325 $ 82,482 -5.5 TIMOTHY KEEFE DISTRICT 6
00319 $ 90,308 $ 91,399 1.2 JAMES MORRISON DISTRICT 6
00352 $ 135,418 $ 123,177 -9.0 BETHANY KUCHARIK DISTRICT 6
00373 $ 155,361 $ 122,967 -20.9 KRISTINA GOUGOUSHEVA DISTRICT 6
19
Encourage ‘one more sale in the basket’ with secondary displays of these top selling Hershey items
Source: Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY everyday and seasonal combined
Rank in the
Top 10
20
Hershey’s Chocolate Syrup 24oz ranks #1 in dollar sales at Hannaford
Hrd DSS 1-5-2008 thru 11-15-2008 ice tea, cocoa and syrup
21
Grow profit and sales with Hershey’s
exciting
Q2 promotions
22
Increase sales of top selling Hershey’s Syrup 24oz with continued support of rack displayed near milk case
Hannaford Factory Sales YTD to April, 2007 – Sam (+18%)
+18%
Source: Hrd DSS 1-5-2008 thru 11-15-2008 ice tea, cocoa and syrup (#1)
23
Items on the Hershey’s Low Profile rack, at Hannaford, return between 36% to 44% profit margin
Ice Breakers Mints 41%
Ice Breakers Bottle Packs 36%Ice Breakers Gum Packs 44%
Standard Bars 38%
Benefits:•Highly profitable•Confection is highly impulsive with 42% unplanned•Allows for first to street with new items (e.g. IB Bottle Pks)
April 2, 2009
24
4 sided rack April – June Planogram displays high profit, top selling candy items
25
April 2009 promotional display plan
Packaged 12oz
Largest Packtype
Night at the Museum Battle of the Smithsonian
5/22
Summer
Profitable, Top Selling Items
Milk 6pks (S’Mores): ranks 1, $ sales
Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales
Bonus Twizzlers: ranks 9th, $ sales
Bonus Standard Bars: 38% profit margin
King Size Shipper: 38% profit margin
Mother’s Day Pot of Gold Demo (4/25)
Theater Boxes
Profitable, Value Offering
at 5/$5
Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combinedProfit margin: std bars based off .79 SRP and King based off $1.39 SRP
32% profit margin
26
May 2009 promotional display plan
Packaged 12oz
Largest Packtype/Value
Offering with Bonus
Bonus Packaged Module, 150ct
Summer
Profitable, Top Selling Items
Milk 6pks (S’Mores): ranks 1, $ sales
Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales
Bonus Twizzlers: ranks 9th, $ sales
Bonus Standard Bars: 38% profit margin
King Size Shipper: 38% profit margin
Fresh Magazine
Profit
Starbucks featured in May – June issue
Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combinedProfit margin: std bars based off .79 SRP and King based off $1.39 SRP
27
June 2009 promotional display plan
Packaged 12oz
Largest Packtype/Value Offering with
Bonus
Bonus Packaged Module, 150ct
Summer
Profitable, Top Selling Items
Milk 6pks (S’Mores): ranks 1, $ sales
Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales
Bonus Twizzlers: ranks 9th, $ sales
Summer Co-Marketing June 7-July 11:
–Asst module (cartons/Twizzlers) & Syrup module
Hannaford & Hershey Help Fight Hunger
Hershey’s donates $20K
Reese’s Loves You Back Standard Bar shipper
New Item
Demos
Reese’s Dark Pkg DRC co-op with water (end of June)
Reese’s Cremes DRC and Trial Size (end of June)
Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combinedProfit margin: std bars based off .79 SRP and King based off $1.39 SRP
28
May 3rd
$1 off Bliss or Reese’s Clusters
May 17th
$1 off Honey Maid Grahams when you buy 1 Jet Puffed Marshmallow and 1 Hsy Milk 6pk
May 17th
$1 off two Syrup/Toppings
June 28th
$1 off two 6 packs (graphics pending) &
$1 off 3 Twizzler bags
Hershey’s National FSI’s April – June 2009
29
S’Mores Rocks Your Block …
Smores_Rocks_Your_Block.mpg (4...
30
Corrugated S’Mores Display
31
Confectionery has the dimensions to increase consumption, sales and profits
– Huge category One of the largest
– Profitable Strong margins
– Frequently purchased Key to shopping trips
– Incremental Builds the shopping basket
– Promotable Responds to activity
– Expandable Consumption leads to growth
Source: Dechert-Hampe & Co.
32
Hershey’s fun facts………..
•When did Hershey began making Kisses?
•Finish this - SEE CANDY, …
•Who has the largest share of C.G.M business at Hannaford?
•What’s Hannaford’s #1 Confection item, $ sales
33
Thank you!
34
See Candy, Buy Candy, Eat Candy…buy more candy
See Candy
Buy Candy
Eat Candy
Buy Candy