1. Market 180 Hershey Halloween Guide

2. Creative and early executions helped drive Market 180’s Hershey Halloween sales +8.4% in 2011, despite weather.
2011 Final Sell Thru= 79.5%
Total shipment for Market= $405,774
2011 Final POS=
$322,557
Top 3 Stores for Sell Thru: Mexico, Rockland, Skowhegan (see below)
Biggest opportunity to grow sales for Market:
Augusta, Auburn, Waterville and Oxford 2

3. Establish proper inventory flow over the course of the season
2012 Halloween strategies have been designed to offset poor sell thru performance in 2011
Correct Factory & POS volume to achieve 90% Sell Thru and deliver $154.4M in retail sales
Establish proper inventory flow over the course of the season
Create usage occasions to win share early and reduce mid-season slump
Drive POS through season long modular distribution, and displays of top items in “A” locations 3

4. 2011 Hershey Halloween Results in Market 180
Hershey is #1 Halloween Candy Manufacturer

5. Hershey Halloween 2012 in Market 180
Total Market order= $368,791
+14% vs. Final POS$ last year ($322,557)

6. Both Mexico and Rockland stores are the only stores in Market 180 with an increase in POS$ shipments vs. LY.
How can we support these stores and grow upon the success they had last year as the top two stores in the Market for sell thru and %POS growth?
Early execution is extremely important
Creative displays worked well last year and will have to be done earlier and better than last year in order to meet demands
Likewise, stores with large orders have less of an opportunity than they did last year for POS$ growth. If we do not get early sales, we will have less opportunity to anniversary sales/sell thru in the final weeks of the season.
Likewise, stores with large orders have less of an opportunity than they did last year for POS$ growth. If we do not get early sales, we will have less opportunity to anniversary sales/sell thru in the final weeks of the season.
How can we support these stores and grow upon the success they had last year as the top two stores in the Market for sell thru and %POS growth?
Early execution is extremely important
Creative displays worked well last year and will have to be done earlier and better than last year in order to meet demands

7. Retailers who executed early realized higher overall sell through.
Hershey Halloween Unit Sell Through and Set Date
Key Customers through 10/31/11
Group 3 (late) sell through = 78.9%
Group 1 (early) sell through = 84.0%
Group 2 (mid) sell through = 82.2%
Source: Internal Customer POS 7 7 7 7

8. Hershey will support early execution with an August FSI on Chocolate Packaged Candy (CPC) and Snack Size
August 12, 2012 (2 coupons)
Save $1.00 when you buy 3 bags of REESE’S or KIT KAT Snack Size (9-22 oz.)
Save $1.00 when you buy 3 bags of CPC (10 oz. or larger)
½ page with 35M circulation
NEW
CPC
Final offers and images are subject to change 8 8 8 8 8 8 8

9. Action alley display and consumer support for Harvest CPC will drive $4.3M POS early in the season
Display ready ½ pallet wk 29 2 $ 88
TAB September 2nd
FSI August 12, 2012
$1 off 3 Bags Snack Size 9-22oz
$1 off 3 Bags CPC 10oz or larger
½ page with 35M circulation
Door to floor execution in week 29 will drive early sell thru of this key packtype
Harvest CPC sell thru will be reported starting week 30
POS sales will roll into Halloween sell thru week 33
"Retail pricing is at the sole discretion of the retailer. Retail prices are only included
as a reference point and for comparison purposes.” Cost are subject to change.

10. Candy should be central to all displays
Halloween Items % Purchased
And all of those activities translate into consumers purchasing multiple categories
Source: Hershey Seasonal Tracker - Halloween 2011 10 10 10 10 10 10

11. In store displays are a key driver of purchases
Source: Hershey Seasonal Tracker – Halloween 2011 11

12. FSI and TV support will continue in 2012
Newspaper TV
REESE’S and KIT KAT
Halloween-Specific
September 23, 2012
Save $1.00 when you buy 3 bags
Full page with 40M circulation
New!
October 14, 2012
Save $1.00 when you buy 3 bags)
Final offers and images are subject to change 12 12 12 12 12 12 12

13. Hershey’s 2012 Halloween delivers new items, new graphics, and larger piece count assortment bags68 3 $ 28
NEW
GRAPHICS
100% Shipping Week 31 (8/25-8/31) 13 $ 88 19 $ 88
King Size Reese’s Pumpkins are replaced by standard bar Reese’s Pumpkins and new Cadbury Screme Eggs
Ensure secondary display of Std Bars in PDQs on D82 checkout endcaps near Speedy and Tobacco checkouts
2012 Instant Consumables and Multipacks offer impulse snacking solutions, and reward special Trick-or-Treaters
Reese’s Pumpkin 6-packs feature new graphics for 2012
POS and item selection of $13.88 & $19.88 Variety Bags will expand for 2012 after sell thru success in 2011
Ensure $13.88 and $19.88 items are displayed in separate 4ft sections of the seasonal modular, segmented by manufacturer, and striped by item to highlight variety to shoppers
"Retail pricing is at the sole discretion of the retailer. Retail prices are only included
as a reference point and for comparison purposes.” Cost are subject to change. 13

14. High traffic displays of Core Snack Size at the lobby/cartrail is key to 90% sell thru
Display ready pallet wk 32
Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12 2 $ 68
Start the season on the right track to 90% sell thru via the following execution imperatives:
Modular set by 9/4/12
Seasonal aisle anchor endcaps for $2.68 SS, and $8.88 ATG Snack wk 31
$2.68 & $8.88 Snack pallets on Cart Rail or Grocery Action Alley wk 32
Timely execution is a must, as early season sales are generally not recouped in later weeks
32%
of Halloween Buy
"Retail pricing is at the sole discretion of the retailer. Retail prices are only included
as a reference point and for comparison purposes.” Cost are subject to change. 14

15. Hershey’s ATG Variety Bag is Walmart’s #1 Seasonal SKU and is 12
Hershey’s ATG Variety Bag is Walmart’s #1 Seasonal SKU and is 12.5% of the total Halloween Buy
Door to Grocery AA wk 32
Display ready pallet
Season long distribution in the seasonal aisle beginning wk 31 is critical to 90% sell thru 8 $ 88
Most of the country will receive the ATG bag with Whoppers
28%
of Halloween Buy
"Retail pricing is at the sole discretion of the retailer. Retail prices are only included
as a reference point and for comparison purposes.” Cost are subject to change. 15

16. Achieve 90% sell thru via lobby/cartrail displays of Jumbo Snack Size, a top 3 packtype
Display ready pallet wk 35
Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12 4 $ 68
Door to floor execution in week 35 will drive early sell thru of this key packtype
15%
of Halloween Buy
"Retail pricing is at the sole discretion of the retailer. Retail prices are only included
as a reference point and for comparison purposes.” Cost are subject to change. 16

17. Feature the top brands & packtypes consumers seek to finish on pace to 90% sell thru
CARTRAIL
SEASONAL
AISLE
ANCHOR
ENDCAPS
Finish the season at, or above 90% sell thru via the following execution imperatives:
Seasonal Aisle becomes a destination, ensure distribution of all Halloween SKUs in aisle
Maintained in applicable packtype, brand, & price point blocks
Seasonal aisle anchor endcaps for $2.68 SS, and $8.88 ATG Snack
$2.68 SS, $4.68 Jumbo, & $8.88 ATG Snack pallets on Cart Rail or Grocery Action Alley
4ft branded blocks for $2.68, $4.68, $8.88, $13.88, and $19.88 on Catch the Season Wall
Front End Action Alley placement for additional $2.68 SS and $2.88 CPC stack bases
Std Bars in PDQs on D82 checkout endcaps near Speedy and Tobacco checkouts
ACTION ALLEY

18. 2012 Halloween Planner Early execution drives sell thru success
50% of Halloween orders will ship by week 31 vs. only 35% last year
18.3% of sales occur prior to the end of September
Timely execution is a must to achieve 90% or higher sell thru, as early season sales are generally not recouped in later weeks