THE WAY OF SHOPPER MARKETING

THE WAY OF SHOPPER MARKETING North America Group Full Process Deck December 2013

Presentation Contents Introducing the Coca-Cola Way of Shopper Marketing How the Coca-Cola Way of Shopper Marketing Works 5 Phases to Developing Coca-Cola Shopper Marketing For each phase step, we use use a fictitious learning example to illustrate the steps.Look for the “Flagler’s” pages in green in each section. Appendix of Resources

Benefits of The Coca-Cola Way of Shopper Marketing Strategy of the brand and the retailer are interwoven in the outcome Projects are on time and on budget Systematic approach to improving (vs. haphazard) The WayofShopper Marketing – North America Group Classified - Internal use

5 Phases in The Coca-Cola Shopper Way of Shopper Marketing Foundational Building Programs Brief PHASE 1 ASSESSMENT Clarify which shopper behaviors to address and understand how to influence them PHASE 2 SUSTAINING SHOPPER STRATEGIES Identify the sweet spot (encompassing shopper, retailer and company) for each joint opportunity PHASE 3 STAKEHOLDER ALIGNMENT Gain internal and external support for sustaining shopper strategies and opportunities PHASE 4 PROGRAM DEVELOPMENT Collaboratively build insights-based programs that influence shoppers along path to purchase PHASE 5 EXECUTION & MEASUREMENT Execute and measure success against intended shopper behaviors and ROI

Phase 1: Assessment

Clarify which shopper behaviors to address and understand how to influence them. PHASE 1: ASSESSMENT

Steps 1.1 1.2 1.3 1.4 Determine the growth opportunity (PITA) Inventory shopper information and identify knowledge gaps Identify shopper drivers & barriers Understand the shopper Path to Purchase

Step 1.1: Determine the growth opportunity PITA defines and prioritizes the growth opportunities for the category and brands • Helpful Hints: • Category Advisory has an Excel based tool to run the analysis • Data sources may include Nielsen HH Panel, Customer POS or loyalty card data • Competitors may be retailers or channels

Step 1.1: Determine the growth opportunity First, category PITA… Category PITA identifies opportunities that will grow our customer’s beverage business …then TCCC PITA TCCC PITA helps us understand the opportunities for our brands

Step 1.1: Determine the growth opportunity • Identifying areas of opportunity between TCCC’s & retailer’s objectives creates synergy for successful collaboration • Collaborate with retailer early in process to create alignment • Helpful Hints: • TCCC objectives include financial goals, strategic partnership objectives and “must win” battles • Customer objectives can be identified through customer plans or sources such as Kantar Retail, annual reports, retailer web sites

Our Learning Example These pages represent a fictitious learning example to illustrate each step in our Shopper Marketing process. Flagler’s Value Market will be the example we use throughout the guide. Examples in Phases 2-5 will represent a specific joint opportunity. Background • Flagler’s Market is a value store that wants to differentiate itself by providing value and convenience to its shoppers. • It is known for offering a good variety of name brands at low prices. • Flagler’s focuses on trying to build loyalty with its core shoppers, as well as steal share from competitors on the Fill-In trip.

Step 1.1 Example Our Largest Joint Opportunity is Driving Incidence After analyzing the Beverage Category PITA, we identified that Flagler’s has an opportunity in Incidence

Step 1.1 Example Then we examined Sparkling Performance at Flagler’s. Incidence is also the area of TCCCOpportunity

Step 1.1 Example We started by Capturing Both Our Priorities We identified Two Opportunities to Drive Incidence

Steps 1.1 1.2 1.3 Determine the growth opportunity (PITA) Inventory shopper information and identify knowledge gaps Identify shopper drivers & barriers

Step 1.2: Inventory shopper information and identify knowledge gaps for each business opportunity. • Insights drive great Shopper Marketing • Understand and inventory the shopper information that is available before you get started • Helpful Hints: • This step must be done for each business opportunity, by occasion, by brand, by package, etc. per customer. • Create a Knowledge Map: • Plot data sources against the Shopper Strategy (Who, What, Where)

Step 1.2: Inventory shopper information and identify knowledge gaps • We know a lot about shoppers • Our inventory is comprehensive - but customize based on your specific needs

Step 1.2: Inventory shopper information and identify knowledge gaps Execute research to fill the knowledge gaps

Step 1.2 Example Based on our Insights Inventory, Flagler’s and TCCC lacked information on Media Usage

Steps 1.1 1.2 1.3 Determine the growth opportunity (PITA) Inventory shopper information and identify knowledge gaps Identify shopper drivers & barriers

Step 1.3: Identify shopper drivers & barriers • Find out what’s important Understand what attributes are important to shoppers and how your customer performs against them

Step 1.3: Identify shopper drivers & barriers Synthesize insights to understand what will drive the PITA opportunity Next, identify the shopper barriers you need to overcome

Step 1.3 Example Our research highlightedKey Drivers and Barriers for Shoppers at Flagler’s and helped identify areas of strength, as well as opportunities we could tackle together.

Step 1.4: Understand the shopper Path to Purchase • Determine POI activation • It’s important to study and identify the shopper’s Path to Purchase. • Heat maps and Path to Purchase research can be used to identify shopper traffic throughout the store and where shoppers will be exposed to your communications. • Use tools like theseto determine the POIsto activate.

Step 1.4: Example For Flagler’s, the most influential and most frequently viewed media nodes became the focus for communicating with a limited budget.

Success is when: Insights are leveraged to understand the strengths and barriers to influence the shopper across the path to purchase in order to drive PITA growth opportunity Stakeholders agree to the joint opportunities that will enable category and TCCC growth

Available Resources Support Resources Frameworks PITA Knowledge Map Knowledge Brief Drivers & Barriers Category Selling Stories Customer Plans Category Advisory PITA Shelf Savvy – Intro to Shopper Insights Best Practices

Phase 2:Sustaining Shopper Strategies

Identify the sweet spot (encompassing shopper, retailer and company) for each joint opportunity PHASE 2 SUSTAINING SHOPPER STRATEGIES

Steps 2.1 2.2 2.3 2.4 Identify who the shopper is Understand what is important to the shopper Determine how the brand(s) best fits with shopper and retailer needs Plan where to engage shoppers along their path to purchase

Step 2.1: Identify who the shopper is • Identify the Sweet Spot to translate brand love to brand value. Occasion Needs RetailerPriorities Brand Relevance Sustaining Shopper Strategies Making connections and understanding the common intersection points (sweet spot) is how we create winning Sustaining Shopper Strategies ShopperNeeds

Step 2.1: Identify who the shopper is Determinewho most often purchases the brand for the occasion Begin withthe brand’sconsumer target Identifythe target consumption occasion Identify the mission where the purchase occurs

Step 2.1: Identify who the shopper is • Understand the Shopper • Identify the shopper for the selected occasion. • Note: the shopper may not be the same as the consumer

Step 2.1 Example We found that the Flagler’s Shopper is a Busy Caregiver Under Pressure

Steps 2.1 2.2 2.3 2.4 Identify who the shopper is Understand what is important tothe shopper Determine how the brand(s)best fits with shopper andretailer needs Plan where to engage shoppersalong their path to purchase

Step 2.2: Understand what is important to the shopper Understand how they see themselves and the occasion Learn how the retailer and the mission affect how they shop Identify what is important to them as shoppers for this occasion Identify the role of beverages & other items in this mission

Step 2.2: Understand what is important to the shopper • Understand the Behavior • We need to find out everything about them as shoppers

Step 2.2 Example For the Flagler’s shopper, Family is of the utmost importance and she seeks quality products at a good value

Step 2.3: Determine how the brand(s) best fits with shopper and retailer needs Occasion Needs • Bring it all • together We want to identify the intersection that aligns occasion and shopper needs with relevant brand attributes and retailer priorities … this is your Sustaining Shopper Strategy RetailerPriorities Brand Relevance Sustaining Shopper Strategies ShopperNeeds • Helpful Hints: • Develop Sustaining Shopper Strategies for each joint opportunity you identified

Step 2.3 Example Our joint shopper strategies… For Meals & Snacks at Home, we identified needs through all four lenses

Step 2.3 Example Connect family, meals/snacks & happiness to satisfy shopper needs Then built a Sustaining Shopper Strategy for Meals and Snacks at Home Helping Her Say YesTo More Moments of Happiness

Step 2.4: Plan where to engage shoppers along their path to purchase • Because shoppers are constantly flooded with media it’s important to strategically look at WHERE to engage shoppers in order to create the greatest impact. • Identify the most influential media touchpoints • Determine which touchpoint to activate on the path to purchase • Determine the optimal messaging by touchpoint

Step 2.4: Plan where to engage shoppers along their path to purchase • Helpful Hints: • Work with retailer to define objectives to get stronger commitment • Objectives for touchpoints can span across Path to Purchase • Refer to Shopper Drivers & Barriers and Media Influence data

Step 2.4 Example We created a Content & Connections Plan for strategy across the P2P

Success is when: Sustainable Shopper Strategies that create long term platforms for profitable growth are defined All 3 players—shoppers, brands and customers—are supported with a strong intersection Touchpoints are prioritized to influence the shopper across the Path to Purchase, based on insights.

Available Resources Support Resources Frameworks Content & Connections Plan (Strategy template) Shelf Savvy – Intro to Shopper Insights Shelf Savvy – Intro to Shopper Marketing K&I: Occasions/Missions decks i-shop STEP (opportunity statement) Content and Connections (customer example)

Our Largest Joint Opportunity is Driving Incidence Phase 2 Summary: Now all the tools arein-hand to link business processes with creative development Business problem to solve Initiatives to attack Communication strategy Connections strategy

Phase 3:Stakeholder Alignment

THE WAY OF SHOPPER MARKETING