1. SHOPPER BASKET DECISION Kantar Media: Powering Informed Decisions with Integrated Brand 360

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3. Kantar Media: Powering Informed Decisions with Integrated Brand 360 Agenda: Thank you and welcome Other media and shopper consideration The shopper experience and influencers Let’s get grounded…

4. Thank you and welcome We’ve been talking about coupons – a very vital part of the consumer’s decision making process when it comes to purchasing a product at a retailer. However, we all know how multi-faceted the shopping environment is today Kantar Media: Powering Informed Decisions with Integrated Brand 360

5. Consumer experience and consideration The consumer is exposed many other media, in addition to coupons, that deliver helpful and additional information that is considered ahead of purchasing a product Brand + Retailer TV Advertising Digital Promotion FSI Promotion Internet Advertising Radio Advertising Print Advertising Outdoor Advertising Kantar Media: Powering Informed Decisions with Integrated Brand 360

6. Influencing factors I wanted to share with you today, what many already know, that many coupons are a part of a campaign or media event that crosses multiple weeks and different media vehicles. We’ll explore how a shopper is exposed to, and may be influenced by these related factors Kantar Media: Powering Informed Decisions with Integrated Brand 360

7. But first, a few slides to ground us Kantar Media: Powering Informed Decisions with Integrated Brand 360

8. There is a shift in strategy within the Food sector with all Areas increasing Digital promotion. –The largest shift in activity was within the Cereal area where Digital now represents 11% of total Promotion activity. –The Average Share of Media within Food is 95% for Print and 5% for Digital. Contrary to Food, Non-Food brands are increasing activity in Print and Digital Promotion. –Health Care had the largest actual increase in Coupons Dropped and the second largest actual increase in Estimated Coupon Prints. Personal Care also increased both Print and Digital activity. –Household Products saw a decline in the use of Coupons Dropped but increased Estimated Coupon Prints. –The Average Share of Media within Non-Food is 98% for Print and 2% for Digital. ‒ Household Products Digital share of activity is the only Non-Food Area to have more than 1% Digital activity, with a level similar to Food at 3%. Kantar Media: Powering Informed Decisions with Integrated Brand 360

9. Weighted Average Face Value –Cereals, Dry Grocery, and Health Care all increased both Print and Digital Weighted Average Face Value (WAFV) in 2015. –Four out of nine areas increased Weighted Average Face Values (WAFV) in Print while seven of nine increased Digital WAFV. –Other Packaged Goods Digital WAFV is more than twice the value of Print; while Frozen Products, Refrigerated Foods and Household Products also had higher Digital than Print WAFV. –Health Care had the largest gap between Print and Digital WAFV with Print values roughly $0.32 higher than Digital WAFV. Weighted Average Expiration –Non-Food Areas kept flat or decreased Weighted Average Expiration (Weeks) in Print. –Health Care ran the longest Expiration within Digital and was the only Area to have a longer Expiration in Digital than in Print. –Other Packaged Goods kept Expiration flat within Print but decreased Expiration in Digital, having the lowest of all Areas, which had Print Expiration at almost 3 weeks longer than Digital. –Within Food, Print Expiration is longer than Digital across all Areas. Print = Free Standing Insert (FSI), Magazines, Sunday Magazines, Smart Source Coupon Machine (SSCM) Digital = Network websites, Retailer websites and Brand websites Kantar Media: Powering Informed Decisions with Integrated Brand 360

10. Print = Free Standing Insert (FSI), Magazines, Sunday Magazines, Smart Source Coupon Machine (SSCM) Digital = National/Network Websites, Retailer Websites, Brand Websites, Aggregator/Affiliate Websites and Lifestyle Websites Digital Promotions Coupon Prints YE 2015 (000) Print Promotions Coupons Dropped YE 2015 (MM) Coupons Dropped (MM) Coupon Prints (000)

11. Kantar Media: Powering Informed Decisions with Integrated Brand 360 NEW PRODUCTS

12. RETAILER ACTIVITY Kantar Media: Powering Informed Decisions with Integrated Brand 360 Retailer Print FSI promotion decreased for the first time in eight years, down 24.9% to 19.2 billion pages but is up 12.1% versus 2011. The top ten retailers represented 80.8 percent share of the total retail promotion pages distributed.

13. Kantar Media: Powering Informed Decisions with Integrated Brand 360 Retailer promotion decreased for the first time in eight years, down 24.9% to 19.2 billion pages but is up 12.1% versus 2011. Four of the top ten retailers increased FSI Pages Circulated in 2015 including Dollar General (26.1%), CVS Pharmacy (23.7%), Publix (1.8%) and Rite Aid (3.4%) Walmart’s focus on new and exclusive offers and Target’s focus on their Cartwheel app to distribute offers contributed to the decline in overall retailer pages circulated versus the peak year achieved in 2014 allowing other retailers like Dollar General and CVS who increased their participation to capture a greater share of trips and coupon redemption. RETAILER ACTIVITY The top ten retailers represented 80.8 percent share of the total retail promotion pages distributed.

14. Kantar Media: Powering Informed Decisions with Integrated Brand 360 FSI COUPONSDIGITAL COUPONS ADVERTISING IMPACT FSI coupons can reach up to 70 million households each Sunday. Shoppers engage with FSI coupons when they are writing shopping lists and planning shopping trips Digital coupons can leverage the advantages of digital media platforms to increase advertising impact through “earned” impressions on social media. PURCHASE INCENTIVE FSI coupons represents about 90- percent of coupons distributed in the Consumer Packaged Goods landscape. FSI coupons provide shoppers with a tangible reminder of an intended purchase. Digital coupons can be used to “boost” a brand’s advertising and promotion effectiveness or they can be used to “interfere” with competitive activity RETAILER ALIGNMENT Retailer alignment with FSI coupons can increase the effectiveness of the offer by helping the shopper understand the overall value, by providing an additional incentive such as a gift card, and by providing merchandising support. By targeting engaged shoppers at a specific retailer, digital coupons may be a cost-effective tactic to accelerate distribution build for a new product, to secure merchandising support during a key selling season, or to increase sales for the brand and the retailer.

15. Kantar Media: Powering Informed Decisions with Integrated Brand 360

16. Jane, The Shopper Story Coupons are a critical part of the path-to-purchase

17. Kantar Media is the industry leader for competitive Advertising and Promotion intelligence BRAND ADVERTISING Builds brand equity and creates brand preference among consumers and shoppers. Spot TV Network TV Cable TV Syndication Spanish Language Network TV Newspapers National Newspapers Hispanic Newspapers Magazines Sunday Magazines Local Magazines B2B Magazines Hispanic Magazines Local Radio Network Radio National Spot Radio Internet Outdoor RETAILER PROMOTION Shoppers seek out relevant promotions and offers for brands and categories included on a specific retail trip mission. Retailer Free Standing Inserts (FSI) RedPlum SmartSource P&G brandSAVER Digitally Distributed Coupons (Retailer Websites) Magazine FSI BRAND PROMOTION Shoppers seek out and engage with offers when they are actively writing shopping lists and planning shopping trips. Manufacturer Free Standing Inserts (FSI) RedPlum SmartSource P&G brandSAVER Digitally Distributed Coupons (Network, Affiliate, and Brand Websites) Magazine FSI In-Store Smart Source Coupon Machines

18. Kantar Media: Integrated Path-to-Purchase Jane, The Shopper Story Now, the story: Let’s start with a basic Shopper story – Jane plans a trip for cold, cough, and allergy –Who is she? Mother of 2, works as a teacher, saving money for her family –Digitally savvy – uses mobile apps, other coupon websites –But, she also uses the Sunday FSI – trained by her mom as we’ve heard on our panel before What media is she exposed to? What might influence her purchase decision in Spray Allergy category? How does the FSI reach her?

19. Kantar Media: Integrated Path-to-Purchase Jane, The Shopper Story Here is what information Jane is receiving as she catches a few shows on TV and as she’s surfing the web and reading her newspaper: –Examples from TV, banner ads, newspaper on Allergy promotions Examples

20. Kantar Media: Integrated Path-to-Purchase Jane, The Shopper Story Now, her need hits, when she planned to go shopping for the weekly trip – here is what she is exposed to: –Day before she goes, ads exposed to for specific product

21. Kantar Media: Integrated Path-to-Purchase Estimated Expenditures Advertising activity for the Spray Allergy category increased in February 2016

22. Kantar Media: Integrated Path-to-Purchase Advertising ($) Estimated Expenditures Print Estimated Expenditures FSI Print activity for the Spray Allergy category increased in accord with brand Advertising activity from Jan- Feb 2016.

23. Kantar Media: Integrated Path-to-Purchase Advertising ($) Estimated Expenditures When FSI Print activity for the Spray Allergy category is placed on the same scale as the brand Advertising activity from Jan- Feb 2016, the impact of FSI Print is evident. Print Estimated Expenditures

24. Kantar Media: Integrated Path-to-Purchase Bubble size = Estimated Expenditures FSI Print events for the Spray Allergy category were an excellent way to reach the consumer compared to the various brand Advertising campaigns Jan-Feb 2016.

25. Kantar Media: Integrated Path-to-Purchase Maps

26. Kantar Media: Integrated Path-to-Purchase Spray Allergy Spot TV activity was concentrated in the north eastern, Texas, Florida and Southern California markets from Jan – Feb 2016. Bubble size = Estimated Expenditures

27. Kantar Media: Integrated Path-to-Purchase FSI Events (Estimated Expenditures) for the Spray Allergy category were active in many of the major markets from Jan – Feb 2016. Bubble size = Estimated Expenditures

28. Kantar Media: Integrated Path-to-Purchase The same holds true when you look at Spray Allergy Coupons Dropped for FSI Events from Jan – Feb 2016. Bubble size = Estimated Expenditures

29. Kantar Media: Integrated Path-to-Purchase Retailer specific FSI Events were an active vehicle within the Spray Allergy category from Jan – Feb 2016. Bubble size = Estimated Expenditures

30. Kantar Media: Closing Brands execute campaigns across media, leveraging each different component to reach a shopper Retailers play a role in media choice for a brand Get a 360 view

31. Kantar Media: Powering Informed Decisions Thank you. Darcy Douglas Kantar Media Darcy.douglas@kantarmedia.com 952.253.1604 @berrypepsi www.linkedin.com/in/darcydouglas