Industry Joint Business Planning

Virtual Roundtable

With Rena Dial

September 23, 2020 ALA DISCLAIMER

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Industry Joint Business Planning Virtual Roundtable Industry Joint Business Planning September 23, 2020

Stephanie Supplee, Coastal Pacific Food Distributors Mike Bender, Proctor & Gamble ALA COMMISSARY COUNCIL DEFENSE COMMISSARY AGENCY

Joint Business Planning

Rena Dial Category Manager

September 23, 2020

Your Commissary … It’s Worth the Trip! Notes About Graphs Defense Commissary Agency

JBP Categories: Your Commissary … It’s Worth the Trip!

• Household • Laundry • Paper • Pet

Your Commissary … It’s Worth the Trip! Household Pictures taken 9/4 at Fort Lee Defense Commissary Agency

Your Commissary … It’s Worth the Trip!

Your Commissary … It’s Worth the Trip! Joint Business Plan – Category: Household Category Role: Traffic Driver Drives trips, price sensitive / Brings purchasing traffic to stores / High purchase sensitivity / Lower priced to other roles

• Continue to Optimize assortment- Right Items • Maintain promotional frequency and patron • Drive Innovation via OTB to be first market • Grow trips and dollars in units per trip- per trip- utilizing value on trip driving brands • Regimen displays prioritize by seasonality club pack • Leverage IRC’s/coupons savings to drive • Drive Execution on the Top 50 Stores: Display/Club • Cross merchandising regiment additional value across household categories Packs & Demos • Drive Size Trade up & Trade Across promoting rotations • Utilize competive everyday pricing vs market • Spring Cleaning Dust Buster 2021 for DP 8 Key Plans with, Mid-Tier & Larger sizes with value that creates a • Distribution /Fill Rate larger register ring • Provide /UPC conversions (6 Months) in advance • Category Evaluation removing slow movers • POG Integrity/ set by Primary & secondary lead • Utilize DeCA Scorecard/Nielsen Data to track Performance: • Utilize DeCA Scorecard/Nielsen Data to track • Utilize DeCA Scorecard/Nielsen Data to track • Assign Owner/Timeline: Sales/ Store Operations/Industry Performance: Performance: Execute • First to market new Innovation same as retail or sooner • Assign Owner/Timeline: Sales/ SO/ • Assign Owner/Timeline: Sales/ SO/Industry Measure • Assortment Right Items Sales/Industry • Display focus Regimen • First to market new Innovation same as retail or & • Review Category Performance Sales & Industry • Pricing vs. Outside the gate/Parton Savings sooner Scorecard • Ship and execute IRCs at store level • Household Displays • Top 50 store plan: Display Club/Everyday Laundry Detergent Defense Commissary Agency

Your Commissary … It’s Worth the Trip!

Your Commissary … It’s Worth the Trip! Joint Business Plan – Category: Laundry Care

Category Role: Traffic Driver Drives trips, price sensitive / Brings purchasing traffic to stores / High purchase sensitivity / Lower priced to other roles

DeCA Initiatives Drive Basket Size Drive Value Drive Transactions Goals and Key Performance Metrics (for Category or Segment) Measure Nielsen/Home Scan • Close $ Share Gap vs. xAOC • Increase Closure Rate /Fill Rate • Increase Transactions • Improve Patron Savings 23.7% • Product Availability 98% • Channel Leakage/Club & Mass index 119 to Mass • Total Laundry Care $ declining at 98 vs. • $’s per Trip growing slower than US 4.0% • HH’s Buying are declining -5.4% 111xAoc • $’s Buyer growing slower than US 4.6% Situation • Units/Trips decline -4.0% but basket size increasing 0.6% • Continue to improve everyday savings • Closure rate 42% (IYA 99) Assessment • Drive everyday margin by off shelf regiment displays • Continue to Optimize assortment- Right Items • Drive Regiment with FE across total Fabric care • Drive Innovation via OTB to be first market • Make SUD the #1 form following Liquid Laundry increasing and drive awareness & value monthly • Expand on SUD & FE shelf/displays quarterly distribution and off shelf displays • Leverage IRC’s/coupons • Drive Regiment across Displays events each DP • Grow trips and dollars in units per trip- utilizing club pack • Utilize competitive everyday pricing vs. via end caps and displays Key Plans offerings & Everyday Pricing advantages outside gate • Drive regiment at the shelf through shelf education • Cross merchandising regiment offering FE & Laundry via lane blockers shelf blockers quarterly together • Drive Execution on the Top 50 Stores: Display/Club • Provide /UPC conversions (6 Months) in advance Packs & Demos • Utilize DeCA Scorecard/Nielsen Data to track Performance: • Utilize DeCA Scorecard/Nielsen Data to track • Utilize DeCA Scorecard/Nielsen Data to track • Assign Owner/Timeline Sales/ Industry/SO: Performance: Performance: Execute • Assortment Right Items • Assign Owner/Timeline: Sales/Industry/SO • Assign Owner: Sales/Industry/SO Measure • Track Trips/Dollars/Units • Regimen focus display/margin/Driver • Meet all category requirements: & • Track SUD category growth • Pricing vs. Outside the gate/Parton Savings • First to Market as Retailer or sooner Scorecard • Review Category Performance • SUD/FE Display • Shelf Regiment Point of Purchase • Top 50 store plan: Display Club/Everyday Paper Defense Commissary Agency

Your Commissary … It’s Worth the Trip!

Your Commissary … It’s Worth the Trip! Napkins Pictures taken 9/4 at Fort Lee Defense Commissary Agency

Your Commissary … It’s Worth the Trip!

Your Commissary … It’s Worth the Trip! Joint Business Plan – Category: Paper

Category Role: Flagship Known For & Drives Trips / High Share Relative to Market / High Purchase Frequency / Drives Large Baskets DeCA Initiatives Drive Basket Size Drive Value Drive Transactions Goals and Key Performance Metrics (for Category or Segment) Measure Nielsen/Home Scan • Close $ Share Gap vs. xAOC • Arrest Sales Decline • Increase Closure Rat /Fill Rates • Patrons Savings 23.7% • Product Availability 98% • At DeCA total paper trips are declining 10% - 14% while $ per • Variable pricing on KVIs and trip drivers causing odd • DeCA’s share of wallet on paper is 18% trip are increasing 10% - 11% and uncompetitive pricing • 52% of DeCA’s leakage is going to club and • Leakage to club is indexing at 94% due in part to DeCA’s Situation • Perform post COVID category and share of shelf mass channels. larger club pack assortment Assessment evaluations, remove underperforming SKUs • Demos/Coupons for Top 50 Stores • Continue to address category wide mega strategy in bath • Continue to improve patron savings tissue category

• Focus on ERL (extended roll life) and LCP (large count • Maintain promotional frequency and patron value on • Top 50 store plan: Display Club/Everyday packs) to increase basket size trip driving brands & Demos • Complete mega category strategy in bath tissue to mirror • Maintain competitive everyday prices on key items • Utilize vendors to create store level Key Plans Retail versus the market consumption data to force out product to • Drive sales utilizing paper monthly • Utilize club pack IRC savings to drive additional stores for major events (SO) value across paper categories • Conversions changes /UPC (6 months) in advance • POG Integrity/ set by Primary & Secondary lead • Utilize DeCA Scorecard/Nielsen Data to track Performance: • Utilize DeCA Scorecard/Nielsen Data to track • Utilize DeCA Scorecard/Nielsen Data to track • Assign Owner/Timeline: Sales/ Store Operations/Industry Performance: Performance: • Set deadline for category wide mega strategy completion • Assign Owner/Timeline: Sales/Store Operations/ • Assign Owner/Timeline: Sales/Store Execute • Monitor leakage to club and mass and adjust distribution as Industry Operations/ Industry Measure needed • Use store and consumption data to review • Drive new items & • Execution of all sale events effectiveness of major promotions • Industry teams work with stores to audit out Scorecard • Monitor market pricing of stock issues • Ship and execute IRCs at store level Pet Food Defense Commissary Agency

Your Commissary … It’s Worth the Trip!

Your Commissary … It’s Worth the Trip! Joint Business Plan – Category: PET Category Role: Flagship – Drive Trips and Increase Basket Known For & Drives Trips / High Share Relative to Market / High Purchase Frequency / Drives Large Baskets DeCA Initiatives Drive Basket Size Drive Value Drive Transactions Goals and Key Performance Metrics (for Category or Segment) Measure Nielsen/Home Scan • Stop Sales Decline • Increase Average Shopping Basket Size & Increase Average Shopping Trips • Obtain Average Patrons Savings 23.7% • Product Availability 98% • Leakage: trips declining, missed opportunities. • Improve Patrons Savings. • Club Packs, Displays & Shippers (make • Promotions: Combined Club Packs, Promotional/Seasonal • Pricing Review in All Markets. sure set up is done and quantities ordered at OTBs; Bonus Bag Leakage. Ensure high performing items • Continue with Category Evaluations, removing Slow Distributor Level and Store Level). are available. movers by replacing with New Items / New • Drive Excitement with Big Pet Events. Situation • Ecommerce & Online Leakage / Expansion of Click2Go. Innovation Jan /June timeframes. • Coupons: BOGO, High Value & Everyday. Assessment • Fill Rate issues. • Ensure all Segments in the Category are • Timely Execution of Case Pack • Vendor stocking support. Changes/UPC Changes (6 months). represented (price tiers – value to super premium). • Address Channel Jumpers / Leakage to the Channel with Military Only Coupons. • First To Market - Bring in New / Innovation & Best in Class • Be Competitive in Pricing compared to Outside the • Ensure No Out of Stocks. Items in Jan/June. Gate. • Maintain Pet Events. • Provide Conversions 6 months in advance to ensure the • Increase Multiple Print Points Everyday & on Promo. • Top 50 Stores: demos, events, etc. plans are in place. • Distribution Reviews (NIS). • Increase Trips: Dollars and Units. • DeCA Provide POGs/assignments to Primary/Secondary • Live Sets when possible at DeCA HQ for Sub- • Increase Promotions, Creative Displays, Key Plans Leads to execute and implement Resets/POG updates. Category Reviews. Cross Merchandising, Advertising (Media) • Grow Trips and Dollars & Units Per Trip . • Continue Pet Regimen . and Patrons Savings. • Cross Merchandising Promotions; HI/LO and EDLP. • Strong Promotions enhancing Patrons Savings: • Pet Adoption Events (COVID permitting). • POG Integrity / Share with All. Holiday and Pet Events, Bonus Bags & Club Pack. • Increase Big Pet Events. • Utilize DeCA Scorecard/Nielsen Data to track Performance. • Store Implementation/Tracking: Resets/OTB’s/End • Fill Rate Min (DeCA Store Operations). • Assign Owner/Timeline (DeCA Sales/Store Operations & Caps (DeCA Store Operations). • OTB/Pallet Drops/Promo/Top 50 stores Execute Industry). • Assign Owner/Timeline (DeCA Sales/Store Rack Program (DeCA Sales/Store Measure • First to market new innovation same as retailer or sooner. Operations & Industry). Operations). & • Speed to Shelf / POG Execution (Primary/Secondary Leads). • Patrons Savings and Shelf Pricing. (DeCA Sales). • Promotion Analysis (DeCA Sales & Industry) Scorecard • Send Images to Syndigo/Gladson (Industry). • Expansion of Coupon Programs: ship & execute • Program/NI Execution at Store Level (DeCA • Review Category Performance (Industry & DeCA Sales). IRCs at store level (Industry). Store Operations & Industry). Industry Joint Business Planning Industry Joint Business Planning Virtual Roundtable

Industry Joint Business Planning

With Rena Dial

September 23, 2020