International RCM

August 2011

Amy’s Blend10.1.11 – 11.9.11

“Amy’s Blend”: High-level Overview

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• Amy Erickson was one of Caribou’s first team members, and a passionate roastmaster. After a valiant fight with breast cancer, Amy succumbed to the disease in 1995. We pay tribute to her legacy with Amy’s Blend.

• Last year was the most impactful Amy’s campaign to date. A strong PR campaign, creative and product assortment together drove $1.4M in retail sales and enabled $160K in donations.

• This year we will need to maximize promotional efforts to generate buzz (in the midst of breast cancer awareness month) and drive incremental traffic and in-store excitement, to achieve a donation over $200,000.

Background

The WIGs we’re chasing

Drive incremental traffic (1%) and ticket (5%) in 2011.

Do good through >$200k Susan G. Komen donation.

Overview

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• We have new TMs and guests each year who aren’t familiar with Amy’s story

• Our unique connection and commitment are part of who we are, and needs to be clearly communicated each year

• In-store elements–Stanchion–Door cling

10.1 – 11.9Amy’s Blend 2011: Telling Amy’s StoryIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

Stanchion

Door Cling

Overview

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• Product details– Coffee flavor notes:Vibrant and

cheery, with fruit notes (even melon!), and a pleasing caramelized sugar heaviness

– Vibrant, decaffeinated spiced rooibos tea

• In-store elements– 3-Tier– Feature fixture– Ambient bucket sign with

Basket of Hope donation– ‘Donated by’ sticker– Bean tracker

• Goals– Individual store goals will be

communicated via the Blend

10.1 – 11.9Amy’s Blend 2011: Amy’s Blend Coffee & TeaIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

Overview

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• Product details–Amy’s scarf $11.99–Amy’s 16oz tumbler $16.99–Amy’s 14oz ceramic mug

$8.99–Amy’s 24oz cold cup $14.99

• In-store elements–Feature fixture topper

(with removable top to feature scarf)

–Provisions sign–Small scarf pricing sign

• Goals–5 units per store per week

10.1 – 11.9Amy’s Blend 2011: Amy’s Retail CollectionIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

Overview

• Product details– ‘Bou Breakfast Sandwiches and

Oatmeal continue their focus– Fall LTOs (e.g., Pumpkin Bread,

Caramel Apple Crisp oatmeal, Apple Cinnamon and Maple Walnut scones) continue

• In-store elements– Stanchion 2– Counter Cling– Menu Board– Drink Pick-up

10.1 – 11.9Amy’s Blend 2011: Ongoing Food PrioritiesIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

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Note: old images used, will be updated for 2011

Overview

• Oatmeal is a perfect food for this time of year, and with the improvements we’ve made we need to ensure our guests have a great reason to try us again!

• Amy’s Tea is available in-store and as a reminder of our handcrafted tea lattes (and a chance to taste Amy’s tea!), we feature Amy’s Tea Lattes

In-store elements:• Drive-Thru Translit• Menu Board• Window cling in non-oven stores

10.1 – 11.9Amy’s Blend 2011: Product NewsIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

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Chalkboard Menu Board

Drive-thru

10.1 – 11.9Amy’s Blend 2011: Amy’s Garden GiveawayIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

Overview

• Last year’s planting event and dedication of Amy’s Garden was extremely successful, and the gardens blooming this spring are gorgeous

• We’d like a way to reconnect the 2011 Amy’s Blend activities to the beauty and spirit of the gardens at MOA and Shedd Aquarium

• We’re going to create a way for guests to “Win your own Amy’s Garden!” by signing up with us

In-store elements:• Community Board

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Overview

• We want Team Members of all tenures to get excited about Amy’s Blend and have that excitement show through in-store!

• This year we’ve added the opportunity for store members to create in-store balloon displays for launch week (stores purchase themselves with their LSM money)

– Strongly recommend– We will work with Party City to

pre-select skus and provide the field with this information

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10.1 – 11.9Amy’s Blend 2011: In-store excitementIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

In-store displayBean Thermometer

T-shirt (front)

Amy Blend Overview 10.1 – 11.9

October November

01. 03. 10. 17. 24. 31. 07.

PR and events

Happy Everyday

Double donation week

Free drink w/ BOH

Pink out

Baskets of Hope

Amy’s Blend Tea Latte

Fall LTOs – Pumpkin Bread, Apple Cinn & Maple Walnut scones, Caramel Apple Crisp Oatmeal

Food rehit (oven stores); oatmeal rehit (non-oven stores)

Fall LTOs – Wild Pumpkin Latte & Pumpkin White Chocolate Mocha

Amy’s Blend Coffee – regular and decaf

Pre-holiday sale

Amy’s Blend Retail Tea Tin

Amy’s Blend Collection 2011

PROMOS

FOOD

BEVERAGE

MERCH

BEANS

OUT OF STORE

New

Continuing from previous promo

Halloween

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Holiday 11.10.11 – 12.29.11

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The cups will be placed by the bar with care…

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The experience all starts before you enter the store…

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… and continues with great in-store atmosphere

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Beautiful POP completes the feel

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Festive touches will be everywhereNapkinsGift Bags

Gift bag label

Reindeer Blend (Regular & Decaf)• Whole Bean pre-pack

regular OR• Whole Bean pre-pack

decaf• Whole Bean hand-pack

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A Merry Mad Lib: The WIGs we’re chasing

Drive incremental traffic (1%) and ticket (5%) in 2011.

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Profitable

Daybreaker

Metal twig tree

RelativesCaffeine-deprived

BOUfanatical

Caribou BaristaFavorite

Spicy Mocha

Run DMC

We have two primary customers we target during holiday…

Primary target customer• Female, ages 25-40• Has children• Is time-crunched• Natural affinity for Caribou

and Caribou products• Needs a diverse

assortment because she is buying for everyone: friends, teachers, mail carriers, kids…. Etc…..

Secondary target customer• Not necessarily a Caribou

loyalist or coffee drinker• Buying for someone who

does love coffee and/or Caribou

• Looks for more traditional Caribou and coffee gift options

11.25 – 12.14

12.15 – 12.25

12.26 – 1.4

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Maximizing retail sales by targeting customers

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Phase I: A Merry Introduction 11.10-11.24

• Introduce & generate excitement for holiday set

• Capitalize on excitement for the return of Reindeer Blend & Thanksgiving bean buys

Phase II: Buy Early 11.25-12.14

• Turn focus to heart of collection & remind customers to buy at the ‘Bou

• Friends & Family Promo• Thanksgiving week promo

Phase III: It’s GO time! 12.15-12.25

• Drive last minute purchases of easily giftable items

Phase IV: Sale 12.26-1.4

MERCH TBD

MERCH

TBD

• Sell off Holiday-specific product by speaking to those who didn’t get what they wanted or want post-holiday stock up deals

* Note: The above Planograms are for most stores, new stores & MDSP stores will be different

Make it Merry Retail Assortment

Reindeer Blend and Gift Sets

Seasonal Collection

Drinkware Collection

Kids’ Collection

Stocking Stuffers

Holiday Candy Collection

Gift Cards

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We need holiday retail to:

▪ Meet our customers’ diverse gifting needs

▪ Entice guests to do their holiday shopping at Caribou and continue to establish Caribou as a retail gift destination

▪ Help transform the store into a gifting wonderland and strengthen the impact of the overall Holiday campaign theme

▪ SELL!

Product collections for 2011*

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7

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* Additional product collection information available in the appendix

This year’s Drinkware Collection:

Drinkware Collection3

Strategy

• Classic gift item for the coffee lover in everyone’s life

• Perfect pairing with other gifts

• Provide our customers with drinkware in a range of styles:

–Functional (hot, cold, stackable)

–Cute/inventive–Boufanatic–Festive

• A range of sizes–20 and 24oz cold–16 and 20oz hot

Basi

csSe

ason

al/S

peci

alty

Cera

mic

$12.9918oz

$8.9916oz

$8.9914oz

$19.9916oz

$19.9916oz

$14.9924oz

$14.9920oz

$21.9920oz

$21.9916oz

$16.9916oz

$16.9916oz

$21.9920oz

$18.9916oz

$24.9920oz

$19.9916oz

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This year’s Kids’ Collection:

Kids’ Collection

Strategy

• Drive ticket by surprising guests with great, brand-right ways to share CBOU love with little ‘bous in their life

$12.99

$12.99 $12.99 $8.99

$15.99$6.99

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This year’s Gift Card Collection:

Gift Cards7

Strategy

• Showcase a variety of gift card options at the register to encourage impulse purchase

• Provide customers with a variety of styles and types to meet all gifting needs

–Holiday Branded–‘Bou Branded–Keychain convenience –

keycard must have removable key fab

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Holiday Favorites Menu: Food & Beverage

Overview

Last year’s POP

• In-store elements– Window cling– Menu board chalkboard– DT Translit– Stanchion Side B– Bakery case labels– Bakery case small sign– Bakery box table tent (buy 5 get 1

free)

• Product Details– Our most popular holiday menu

items are back: Spicy Mocha, Ho Ho Mint Mocha, Fa La Latte, Gingerbread

– LTO Cranberry Walnut Cookie

Holiday logistics

Make sure you are prepared to stock the store! As an example, the average store in Kuwait will receive ~95 hot and cold tumblers, and 18 childrens’ items

• Bulk Items– Bulk Items will be available 8/26 and

consolidated with resupply orders (see schedule)

– Any delay in ordering/payment from this schedule will cause that countries holiday bulk items to be consolidated with Merchandise air shipment

• Merchandise– All merchandise items are schedule to arrive by

10/13 in MN.– From 10/14 thru 10/19, all orders will be

processed and shipped Air to each country.

Sku Description008908 12 oz Holiday Hot Cup008909 16 oz Holiday Hot Cup008914 20 oz Holiday Hot Cup008912 Holiday Clutch008933 Holiday Napkin030118 Reindeer Blend, 40 oz011125 Spicy Cocoa

Bulk Item Listing

Resupply Order Schedule

Order Received Release

Shipped from Cbou

Est Arrival at Port

Oman 1-Aug 18-Aug 26-Aug 27-OctBahrain/Saudi 8-Aug 25-Aug 2-Sep 3-NovQatar/Jordan 15-Aug 1-Sep 9-Sep 10-NovLebanon 22-Aug 8-Sep 16-Sep 17-NovKuwait 29-Aug 3-Sep 9-Sep 10-NovDubai 12-Sep 17-Sep 23-Sep 15-NovTurkey

Appendix

Seasonal Collection2

Strategy

This year’s Seasonal Collection:

• Help transform the look and feel of the store to a Winter Wonderland

• Impulse items that provide opportunities for a customer to purchase as a gift for themselves or someone else

• Collectible ornaments to encourage repeat purchases

$6.99

$5.99

$6.99

$6.99$4.99

$4.99

$5.99

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This year’s Stocking Stuffers:

Stocking Stuffers

Strategy

• Provide customers with a clear place to buy stocking stuffers – for both adults and kids

• Entice our customers through a wide assortment

–‘Bou Fanatic–Seasonal Gear–Dogs & Kids–Coffee sleeves

‘Bou Fanatic

$6.99 $5.99

$10.99$6.99

$3.99

SleevesSeasonal Gear Dogs & Kids

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$5.99

$5.99 $5.99

$7.99

$6.99

$4.99

$4.99

$3.99

$6.99

$12.99

$12.99

$4.99$4.99

$4.99$16.99

$2.99

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This year’s Holiday Candy Collection:

Holiday Candy Collection6

Strategy

• Drive ticket with impulse purchases for guests and as gifts

• Bring back holiday favorites :– 5 oz. Chocolate-covered espresso beans $5.99– 5 oz. Dark chocolate salted caramel corn $6.99– Holiday cookies (snowman & tree) $1.99– Lollipops $2.49– Peppermint Bark $1.49

• Entice guests to try something fun and new:

– 3 oz. Merry Munch $3.99– S’mores Pops $2.49– Peanut Butter Meltaways $6.99– 5 oz. Peppermint shortbread bites $5.99– 2oz. Dark chocolate peppermint Bar $3.49

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10.1 – 11.9Amy’s Blend 2011: Amy’s Blend targeted promotionsIN-STORE OBJECTIVE 1: DRIVE TICKET AND DONATIONS FOR AMY’S BLEND PRODUCTS

What

• Having multiple small promotions throughout the window keeps the story fresh for TMs and guests

• Varying the call to action speaks to multiple types of guests and needs

Why

Current situation

We want to continue the excitement of Amy’s by adjusting our promo slightly each week to ‘raise the stakes’ and give TMs new messages to say

Target audience

Any Caribou guest who has been touched by cancer and wants to bring hope to someone else dealing with the disease

Pink OutOct. 15-16

Free Drink w/ BOHOct. 17-23

Offer details

• BOGO weekend (Oct 15-16)

• Free drink with donated 1lb of Amy’s beans or 2 Amy’s tea tins (Oct 17-23)

• This week only, 20% of Amy’s sales go to Susan G Komen for the cure! (Oct 24-30)

In-storeelements

• No POP, just chalkboard

• Double-sided Stanchion & Ambient Bucket sign with LTO food/bev on other side

• Stanchion sign sent with later kit

Double DonationOct. 24-30

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What:

Target audience

• Everyone who visits Caribou or likes coffeehouse beverages

Current situation

• Last year’s mocha frequency card successfully shifted product mix towards our chocolate beverages, which are higher-than-average ticket

• To-date, our summer frequency card has been well-received in part because it is more flexible in that guests ‘get credit’ for ANY beverage, not just a chocolate beverage

Key messages

• Make it Merry this holiday• Buy “X” drinks, get 1 free!

Offer Details

• Buy “X” drinks, get 1 free! (applies to all handcrafted bar beverages only)

• Last year, we featured a paper mocha frequency card which went over well with guests; this summer we also have a paper frequency card

• We’d like to incent frequency and ticket with a holiday-centric beverage card

Why

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Our frequency cards will keep ‘em coming…

Traffic Driving Promotional Plans

Fun holiday promotions add to the building excitement

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Target audience

Current situation

Offer Details

Friends & familyNov. 18-19

• Caribou loyalists

• “Viral” coupons are more relevant now than ever before as we’ve built up our fans & subscribers

• 20% off beans and merchandise

Nov. 18-19

Thanksgiving weekNov. 20-24

• Hostesses• Thanksgiving

guests

• Strong historical bean sales the week of Thanksgiving

• 2 lbs for $22 Nov. 20-24

New Year’s bouncebackDec. 1-Dec. 30

• Everyone receiving a CBOU gift

• Gift packaging to distribute bouncebacks

• Bounceback offers can talk to new guests who don’t visit us today

• BOGO w/ coupon New Year’s Weekend

12.31 – 1.1

Promo-tional

elements

• Email and social media

• In-store handout

• Email and social media

• Bean quad chalkboard

• Email and facebook posts

• Handouts with each gift bag

• We want to take advantage of the natural tendency of holiday shopping behavior to ebb and flow over this 7-week period

• Brand-right, seasonally appropriate promotions showcase our personality AND drive incremental traffic!

Why