1. DEFENSE COMMISSARY AGENCY Your Commissary … It’s Worth the Trip! Category Management Planning & Promotions ALA Commissary Roundtable, April 1, 2015 Ms. Tracie Russ Director, Sales

2. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 2 Overview Category Management Teams Certification Category Management Roadmap –Consistent processes –Data –Scorecards Collaborative planning

3. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 3 Category Management Roadmap Our objective for today – Inform Industry on DeCA Process and Expectations for Collaborative Planning and Category Reviews Panel members – Mr. Steve Villeneuve, DeCA – Mr. Jon Sanders, DeCA – Mr. James Taylor, DeCA – Ms. KC Remick, Kellogg’s – Mr. Marc Knowles, P&G

4. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Yesterday – Limited standardization – Not part of a strategic management process – Did not facilitate joint annual plan of trade funds Today – Standardize processes for identification: Strategic Growth Assortment opportunities Yearly promotional planning and investment Incorporation of everyday pricing negotiation Days of supply (in-stock) Tomorrow – Consistent processes for collaborative strategic planning – Scorecard for industry and category 4 Evolution

5. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Key Components of Program 5 End to end process to deliver value to our ever-demanding customers CategoryManagementCategoryManagement Shopper Insights & Shopper Marketing Marketing Planogram&SpaceManagementPlanogram&SpaceManagement In-Store Execution &Merchandising &Merchandising Streamline Business Process Improve Customer Service Utilize Technology for Information Sharing

6. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Standardized Practices Category Review Item ranker Category performance Line item count Brand performance Brand impact Planogram Review Item pack out Size store – Size 5 – Size 4 – Size 3 – Size 2 – Size 1 Templates designed to: Manage Strategically Product [categories] over lifecycle Optimize Space utilization; analyze effectiveness over time Leverage Business Intelligence 6 6

7. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Resource Sharing Industry – Category / Shopper Insights – Decision Hierarchies Segmentation – Best Practices – Innovation – Merchandising Solutions – Performance Metrics 7 DeCA – Strategic role of Category – Days of supply objectives – Category pricing strategy – Promotional planning – Performance metrics

8. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Ensure patron satisfaction across all categories Identify/invest in categories that drive Patron Loyalty, Savings, Volume 8 How does category perform in DeCA? (The Why) – Demographics – Shopping Occasion – Assortment – Price – Merchandising – In stock Strategic Planning

9. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Spectra & Consumer Demographics Who is our shopper? What are they purchasing? Demographics Identify shopper opportunities in Remaining Market and All Other Channels 9

10. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Assortment/Placement OJ AO 100% Chilled Drinks Super Premium Single Serve vs. Multi Serve Chilled Teas FC Segment Brand Form Health Benefit Flavor/Fortification Size Serving Class Type TPP, Trop 50, Minute Maid, Private Label, Simply, Florida’s Natural, etc. Pulp No Pulp Low Calorie Regular Vitamin Fortified, No Added Vitamins/Fortification etc. Apple, Lemon, etc. Lemonade, fruit punch, etc. Single Serve 54/59 vs. 64 oz 89/96 oz 128 oz Berry, chocolate, etc. Dole, Simply, Private Label, etc. Minute Maid, Sunny D, etc. Lemon, Green, etc. Size 10

11. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Space Allocation 11

12. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Bottom Line Objective Together, we can increase sales and increase savings to our customers 12

13. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Objective: Optimize Promotional Dollars to Increase Sales and Patron Savings – Strategy must fit category role – Determine pricing strategy (EDLP, MEDLP, Hi/Low) – Space and assortment depth – Category seasonality – Agreement for promotional performance 13 Annual Planning

14. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 14 Promotional Planner Matrix

15. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 15 Promotional Matrix Packages

16. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Industry Submission for Requested Promotional Plan Optimal Period Timing Pricing Strategy (EDLP, Modified EDLP, Hi/Low) Requires Approval from Category Manager NTT Pending 16 Promotional Planner & Matrix

17. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 17 Promotional Evaluation Indicator

18. Your Commissary … It’s Worth the Trip! Defense Commissary Agency 18 Post Promotion Effectiveness

19. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Shopper PenetrationBuying RateStore LoyaltyMarket BasketConversion RateTrips Sales / Market Volume Growth/Decline Category SharePrivate Label ShareGaps Promotion Effectiveness PricingDistribution Speed Productivity / Vendor Out of StocksFill RateAssortmentDays of SupplySpeed to Market 19 Scorecard in Development

20. Your Commissary … It’s Worth the Trip! Defense Commissary Agency Delivery of the Benefit Patron PASSION – What the patron wants to buy – When the patron wants to buy it – Undeniable savings and value 20 Working Together

21. DEFENSE COMMISSARY AGENCY Your Commissary … It’s Worth the Trip! Thank You!