CUSTOMER DEVELOPMENT QUANTIFYING ROUTE TO MARKET PRESENTED BY

CUSTOMER DEVELOPMENT QUANTIFYING ROUTE TO MARKET PRESENTED BY ANALIA DAVIS Director: Nick Russo Manager: Doug Banes Arun Nandi Buddy: Ashleigh Mondale

ABOUT ME University of Florida Senior Marketing Major Enactus Alum 2

AGENDA Understanding Route to Market Project Objectives NSV Dollars Forecasted Maximizing Sales Opportunity Next Steps 3

UNDERSTANDIN G ROUTE TO MARKET

ROUTE TO MARKET MODEL Alternate Broker Preferred Distributor Existing Wholesale ü Focused on inner city stores in NY (i. e. bodegas) ü Began in April 2013 ü Work with J&J Sales ü Focus within NY, LA, and Philly ü Add independent superettes, drug and value for distribution ü Six main focus areas ü Began in April 2013 ü Work with Advantage Sales 5

OVERVIEW OF INDEPENDENT GROCERS 6

MAP OF INDEPENDENT GROCERS 7

INDEPENDENT GROCERS INVESTMENT Expense Cost Salaries for Sales Representatives 217 $1. 6 M 662 $3. 35 M 188 Shopper Marketing Programming $1. 1 M Trade Allowances $. 650 M 409 = 1, 820 stores 192 152 * Salaries for 27 sales representatives and 2 supervisors 8

MEET THE KRASDALE SHOPPER • 65% of shoppers are Hispanic • Typically the woman who serves as the head of the household • Female, age 18 -55 • Avg. shopper makes 2 -3 visits to store per week • Avg. basket spend is $66 a week *Source: Krasdale/Alpha Marketing deck 9

MEET THE KNORR SHOPPER (AT KRASDALE) • Analyzed over 20, 000 transactions with at least 10 items in cart (Oct. Dec. ’ 12) • Knorr shopper tended to shop in ALL departments • Predominant items: Goya beans, rice, milk, meat (staples) • Key opportunity to market Knorr recipes *Source: Krasdale/Alpha Marketing deck 10

Focus on top skus ensures growth for both retailers and Unilever Hone in on Hispanic consumers in top Hispanic metros High return, low investment High Hispanic brand equity Opportunity for new innovations

OBJECTIVES

OBJECTIVES Quantify the benefit of additional distribution within the independent market Analyze the effectiveness and potential opportunity associated with racks and displays Explore the efficacy of the sales representatives in stores and potential growth of the initiative 13

NSV DOLLARS FORECASTED OPPORTUNITY WITHIN THE EXISTING WHOLESALE MODEL

THINGS TO CONSIDER Used Nielsen data for Fiesta and Food 4 Less to gather assumptions Used an average of $8. 3 M ACV to scale down Nielsen data Sales Rep Targets (2013) 60% Fixed Voids 10, 000 FOOS 8, 000 clip strips 3, 000 racks 15, 000 displays Voids: items that are not currently being sold/not on the shelf and there is room for a sell-in 15

METHODOLOGY Identified top skus for each category & added the number of voids & OOS items Referenced current price lists to determine case costs Pulled Nielsen data to determine units sold per $M ACV & Promotion Effectiveness Index (PEI) Extrapolated data for the year to forecast NSV for voided items & 3 -month displays 16

VOIDS, BY CATEGORY • Top 5 categories = $ 7, 418, 876 NSV (annual) Category Description • Voids Mexican Foods 1236 Condiments 1276 Butter - Margarine 1346 Pasta Sauce 1210 Tea 897 Soap - Bar - Liquid 1408 Novelties - Frozen 2154 Ice Cream - Sherbet 1694 Deodorant - AP 1904 Void Turn Rice - Rice Mixes 1969 Diet - Nutrition 1806 Amounts Salad Dressing SS 1073 Hair - Shampoo/Cond 2225 Multiplied units Hair - Fixatives • Base 1135 705 voids. Cosmetics and sold per Skin Care - Body 1462 case cost $M ACV Skin Care - Face 1390 Soups - Canned - Dry 686 Travel - Trial Size 296 Category $$ • $2, 022, 469 $1, 607, 119 $1, 552, 131 $1, 441, 138 $ 796, 016 $ 555, 223 $ 495, 243 $ 413, 087 $ 300, 279 Year $ 1294, 277 $Forecast 276, 230 $ 267, 313 $ 235, 841 Multiplied $ 221, 556 $ 217, 381 void $ 162, 098 amount & $ 138, 567 turns $ 116, 696 $ 29, 009 Total NSV (if 100% OSA): $ 11. 1 M 17

VOID OPPORTUNITY, 2013 • If target amount is reached for 2013, project will result in $2 M in NSV for 2013 Month Total Opportunity % Fixed NSV Generated August $ 5, 593, 215 12% $671, 185 September $ 4, 474, 572 12% $536, 948 October $ 3, 355, 929 12% $402, 711 November $ 2, 237, 286 12% $268, 474 December $ 1, 118, 643 12% $134, 237 Total $ 2, 013, 557 18

FIXED OOS & CLIP STRIPS 10, 000 fixed OOS items for the year = $ 318, 800 8, 000 clip strips for the year = $ 219, 840 Photo from retail, Deals *If yearly targets are met NSV= $538, 640 19

RACKS WITHIN RTM NSV gained: $ 1, 756, 556 $209, 167 $ 455, 023 *If yearly targets are met $ 298, 920 $ 560, 572 20

RACKS WITHIN RTM $ 1, 394 *If yearly targets are met $ 2, 669 21

DISPLAYS • Assuming a majority of virtual displays sold are in the form of national displays Display Name Avg. Case Value Cost % Sold Out of 15, 000 Final Value National Displays $32 $159 85% 12750 $2, 032, 350 Unilever Counter Units $32 $95 5% 750 $71, 730 Unilever Floorstands $32 $159 5% 750 $119, 550 Unilever Racks $32 $867 5% 750 $650, 250 Total $ 2, 873, 880 22

FINANCIAL OPPORTUNITY Fixed Clip Strips; OOS; $ $ 219 840 318 800 Racks , $1, 756, 55 6 Goal Set NSV Distribution Voids 60% $ 2, 013, 558 FOOS 10, 000 $ 318, 800 Clip Strips 8, 000 $ 219, 840 Racks 3, 000 $ 1, 756, 556 Displays 15, 000 $ 2, 873, 880 Item Fixed Voids (60%), $2, 013, 55 7 Displays, $2, 873, 88 0 NSV: $7, 182, 634 23

COST-BENEFIT ANALYSIS $7. 18 M NSV $3. 35 M investmen t 114% return 24

MAXIMIZING SALES OPPORTUNITY

THE “PERFECT” STORE Product • Focus on top 5 skus per category • Sell in top items increases OSA Pack • Priority lies on top skus first, then innovation Promotion • Achieved through displays and racks sold in • Tear pads used on certain products Place • Not on the same planograms as other stores • Use perfect store one-pagers Proposition • National themes (i. e. “What’s For Dinner”, National Mexican soccer team, etc. Price • Can be measured through an additional function on i. Pad 26

THE SALES REPRESENTATIVE’S AGENDA Store Coverage Fix OOS & Voids Sell in racks & displays • Ensures all stores are being called on • Maximize sale opportunities • Build relationship with manager • Ensures top skus are being pulled through the shelves • Hits “Product for Perfect Store” • Provides retailers with additional shelf space • Additional visibility for top skus • “Placement” in Perfect Store 27

STORE COVERAGE MAXIMIZATION • 2013 goal amount: 90% of call coverage • Call: one store visit in which the rep completes their responsibilities • Build visibility of company with store management Store Coverage YTD 8000 7000 6000 5000 4000 3000 2000 1000 0 7251 74% 5393 994 1820 Cycle 4 (April) 1810 1415 14681807 15161814 Cycle 5 (May) Cycle 6 (June) Cycle 7 (July) # Reported YTD # Stores 28

VOID OPPORTUNITY, ACV • Use time efficiently in stores with less opportunities All Commodities Volume (ACV) # of Stores # of Voids 4, 323 Avg. # of Voids Avg. Time in Store (min) 8 60 74 $0 -$5. 2 M 591 $5. 21 M-$7. 8 M 573 10, 556 18 Recommendations 90 $7. 81 M-$13 M 452 7, 675 17 91 Total 1, 820 25, 872 14 85 üUse time more efficiently in stores so call coverage can $13. 1 M+ 204 3, 314 16 93 increase üAnalyze stores below $5. 2 M ACV for future growth of distribution and determine potential opportunity within these stores 29

THE SALES REPRESENTATIVE’S AGENDA Store Coverage Fix OOS & Voids Sell in racks & displays • Ensures all stores are being called on • Maximize sale opportunities • Build visibility (and closer bond) with manager • Ensures top skus are being pulled through the shelves • Hits “Product for Perfect Store” • Provides retailers with additional shelf space • Additional visibility for top skus • “Placement” in Perfect Store 30

OOS OPPORTUNITY, BY CATEGORY Category Description Soap - Bar - Liquid Deodorant - AP Condiments Butter - Margarine Ice Cream - Sherbet Novelties - Frozen Tea Hair - Shampoo/Cond Pasta Sauce Skin Care - Body Skin Care - Face Mexican Foods Salad Dressing SS Hair - Fixatives Rice - Rice Mixes Cosmetics Diet - Nutrition Soups - Canned - Dry Travel - Trial Size *Based on Cycle 4 & 5 data Total OOS Opportunity 318 429 302 328 443 367 235 458 308 281 244 222 364 224 322 61 96 89 5 $21, 607 $17, 377 $15, 228 $11, 074 $9, 994 $8, 900 $8, 823 $7, 534 $7, 465 $6, 544 $6, 234 $5, 926 $5, 045 $4, 343 $4, 289 $3, 967 $2, 947 $2, 320 $147 5, 096 total OOS items 31

THE SALES REPRESENTATIVE’S AGENDA Store Coverage Fix OOS & Voids Sell in racks & displays • Ensures top skus • Ensures all stores are being pulled are being called through the on shelves • Maximize sale & • Hits “Product for opportunities Perfect Store” • Build visibility (and closer bond) with manager • Provides retailers with additional shelf space • Additional visibility for top skus • “Promotion” in Perfect Store 32

NEXT STEPS

RECOMMENDATIONS August. October • Develop the infrastructure for an incentive system (i. e. voids, racks, etc. ) • Collaborate with other departments/brands to innovate marketing tactics October. December • Assess the progress of the sales reps against targets • Determine goal amounts for next year • Assess initiative and determine growth strategy • Discuss measurement of displays with retailers • Implement incentive system • Host follow up training to assess goals with reps • Develop relationships with new retailers • Determine new measures for initiative January + 34

THANK YOU FOR YOUR HELP! Unilever CD Nick Russo Doug Banes Arun Nandi Jim Kernan Amanda Scher Gregg Cosgrove Ashleigh Mondale Tori Mc. Gee Annie Doong Ameeti Mishra Mike Mc. Kenna Jim Hertneky Unilever Marketing Patricio Ferraro Systems Support Lori Carraway Unilever Supply Chain Joanne Venette Shaquanda Spivey Michael Vecchio Advantage Sales Dave Valetta Vincent Engleman Manuel Miranda Victor Colon Ylbania Corniel Harry Graninger Unilever HR Nicole Martin Theresa Hui Krasdale Jack Kelly 35

APPENDIX

APPENDIX Presentation Slides About Me Agenda Route to Market Model Overview of Independent Grocers Map of Independent Grocers Investment Meet the Krasdale Shopper Meet the Knorr Shopper Objectives Things to Consider Methodology Voids, by Category Void Opportunity, 2013 Fixed OOS & Clip Strips Racks within RTM Displays Financial Opportunity The Sales Representative’s Agenda Call Coverage: Maximization Void Opportunity, ACV OOS Opportunity, by Category Recommendations/Next Steps Extra Slides Top Skus Per Category Weekly Volume and Voids FDV: YTD 2013 FOOS: YTD 2013 Racks Sold, YTD 2013 Route to Market Model: Managers Personal Care Solution Data Collection in RTM Intern Challenges 37

TOP SKUS PER CATEGORY Item Description Cosmetics Q Tips Cotton Swab 375 ct Q Tips Cotton Swab 500 ct Deodorant - AP Axe Ap/D Inv Solid Essence 2. 7 z Axe Bs Dark Temptation 4 z Axe Deod Body Spray Phoenix 4 z Degree Ap/D Inv Sol Ec Shr Cln 2. 6 z Dove Ap/D Uc Cucumber/Green 2. 6 z Diet - Nutrition Slim Fast 3 -2 -1 Cappuccino Delight 4 CT Slim Fast 3 -2 -1 Crmy Milk Choc 8 CT Slim Fast 3 -2 -1 French Vanilla 4 CT Slim Fast 3 -2 -1 Rich Choc Royale 4 CT Hair - Fixatives Suave Max Hold Non Aero 11 z Tresemme Hair Spray Ex Hold Euro 11 z Tresemme Hair Spray Ultra Fine Euro 11 z Tresemme Mousse Extra Hold 10. 5 z Item Description Hair - Shampoo/Cond Dove CD Intense Moisturizing 12 z Dove SH Intense Moisturizing 12 z Suave Prof CD Almond/Shea Butter 12. 6 z Suave Prof SH Almond/Shea Butter 12. 6 z Tresemme CD Vit E Moisture 32 z Tresemme SH Vit E Moisture Rich 32 z Ice Cream - Sherbet Breyers All Natural Vanilla 48 z Breyers Butter Pecan 48 z Breyers Chocolate 48 z Breyers French Vanilla 48 z Breyers Van/Choc/Strawberry 48 z Mexican Foods Knorr Mex Bouillon Cube Ckn 24 ct Knorr Mex Bouillon Jar Ckn 15. 9 z Knorr Mex Bouillon Jar Ckn 2. 2 lb Knorr Mex Bouillon Jar Ckn 7. 9 z 38

TOP SKUS PER CATEGORY Item Description Novelties - Frozen Good Humor Strawberry Shortcake 6 ct Klondike Krunch 6 ct Klondike Original Vanilla 6 ct Popsicle O/C/G 20 ct Popsicle SF O/C/G 20 ct Rice - Rice Mixes Knorr Ndles/Sce Alfredo 4. 4 z Knorr Ndles/Sce Butter 4. 5 z Knorr Ndles/Sce Chicken 4. 3 z Knorr Rice/Sce Cheddar Broc 5. 7 z Knorr Rice/Sce Chicken 5. 6 z Salad Dressing SS Western Reg Orig French 16 z Wishbone Reg Italian 16 z Wishbone Reg Ranch 16 z Wishbone Reg Robusto Ital 16 z Wishbone Reg Thou Island 16 z Item Description Skin Care - Body Suave Lotion Cocoa Butter 18 z Vaseline Adv Healing Lot 24. 5 z Vaseline Aloe Cool Fresh Lot 10 z Vaseline Total Moisture Lot 24. 5 z Skin Care - Face Noxzema Original Deep Cleansing Cream 12 z Ponds Towelttes Clean Sweep 30 ct Simple Kind to Skin Cleansing Facial Wipes 25 ct St. Ives Apricot Scrub Blemish/Blackhead 6 z Soap - Bar - Liquid Caress Bar Soap Ntres Slk 2 -8. 5 z Dove Bar Soap Pink 2 Bar 8. 5 z Dove Bar Soap Sensitive 2 Bar 8. 5 z Dove Bar Soap White 2 Bar 8. 5 z Dove Cool Moisture 2 Bar 8. 5 z 39

TOP SKUS PER CATEGORY Item Description Travel - Trial Size Q Tips Trial Travel Purse 30 ct Condiments Best Foods Light Mayo 30 z Best Foods Mayonnaise Squeeze 16. 5 z Best Foods Reg Mayo 30 z Best Foods Reg Mayo 48 z Best Foods Reg Mayo 8 z Hellmann's Light Mod 2 pk 30 z Hellmann's Olive Oil Mayo 30 z Hellmann's Reg Mayo 15 z Hellmann's Reg Mayo 16. 5 z Hellmann's Reg Mayo 30 z Soups - Canned - Dry Lipton Recipe Scrt Onion 2 Pk Lipton Soup Secret Noodle 2 Pk Item Description Pasta Sauce Ragu Chs Creation Classic Alf 16 z Ragu Chs Creatn Rst Gar Parm 16 z Ragu Gardn Styl Tom Gar On 24 z Ragu Spag Sc Old World Meat 23. 9 z Ragu Spag Sc Old World Trad 24 z Butter - Margarine Country Crock Calcium/Vitamins 45 z Country Crock Soft Spread 45 z ICBINB Light Soft 15 z ICBINB Reg Soft 15 z Imperial Reg Quarters 1 lb Tea Lipton Cup Size Tea Bags 100 ct Lipton Cup Size Tea Bags 48 ct Lipton Cup Sz Tea Bags Decaf 72 ct Lipton Inst Tea Mx Lemon 100 z Lipton Inst Tea Mx Lemon 74 z 40

WEEKLY VOLUME & VOIDS Weekly Volume 35, 000 39, 000 40, 000 50, 000 60, 000 70, 000 80, 000 90, 000 100, 000 125, 000 150, 000 175, 000 200, 000 250, 000 275, 000 # of Stores 1 4 11 16 41 64 94 93 266 356 217 169 123 53 43 Total Voids 80 11 32 72 21 188 457 312 3, 150 5, 750 4, 806 3, 100 1, 910 908 495 Weekly Volume 300, 000 325, 000 350, 000 375, 000 400, 000 425, 000 450, 000 475, 000 500, 000 525, 000 550, 000 575, 000 600, 000 725, 000 775, 000 825, 000 # of Stores 37 26 16 19 14 9 8 6 7 5 6 3 2 1 1 1 Total Voids 523 573 90 581 239 168 150 130 81 96 22 58 30 22 34 22 41

FDV: YTD 2013 • 2013 goal amount: 60% void items fixed • Meets “Product” of perfect store • 745 DV fixed thus far Fixed Voids YTD Cycle 7 (July) Cycle 6 (June) Fixed Voids Cycle 5 (May) Cycle 4 (April) 0 100 200 300 42

FOOS: YTD 2013 • 2013 goal amount: 10, 000 items fixed • Meets “Product” of perfect store • Need to ensure OSA is met FOOS YTD Cycle 7 (July) 6 311 Cycle 6 (June) 10 000 4 854 Cycle 5 (May) 10 000 3 233 Cycle 4 (April) 10 000 1 681 0 2 000 10 000 4 000 Targeted Calls 6 000 8 000 10 000 12 000 Actual Calls 43

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ROUTE TO MARKET MODEL Arun Nandi Doug Banes Alternate Broker Preferred Distributor Existing Wholesale ü Focused on inner city stores in NY (i. e. bodegas) ü Began in April 2013 ü Work with J&J Sales ü Focus within NY, LA, and Philly ü Add independent , drug, and value for distribution ü Six main focus areas ü Began in April 2013 ü Work with Advantage Sales 45

PERSONAL CARE SOLUTION (AT KRASDALE) • Krasdale carries 39 Unilever HBC skus • Adding 46 additional skus to distribution • Implement promotional strategy by raising awareness (make shopping experience more efficient) Dump bins can be placed near the register; eliminate fear of shrink 46

DATA COLLECTION IN THE RTM INITIATIVE Sales representative completes tasks assigned in i. Pad software Collect voids, OOS, display information, etc. Then, they submit the information which is sent to headquarters. Information about the store is analyzed and condensed into a sheet Data is forward to Unilever Opportunities within stores can be analyzed 47

INTERN CHALLENGES Limited data resources Lack of experience in financial analysis • Worked with the Nielsen analyst to get a greater understanding of the database • Spoke to analysts about options to measurement initiative • Collaborated with analysts to learn how to measure NSV • Constantly checked in with Arun to ensure I was on the right track Limited knowledge of • products in • store/retail experience Went out on retail for 4 days to learn the retail landscape Worked with Advantage sales rep to understand some of their challenges 48