2014 Ready to Sell Customer Collaboration Overview One Page Overview 2014 Selling Story Selling Story Table of Contents CUSTOMER Executive Summary Consumer Target, Trends & Insights Segment Opportunity Program Details Marketing Support Additional Support Details Available Merchandising Insights Recommended Displays INTERNAL Sales Objectives GSV Volume Objectives Point of Sales Materials Next Steps FAQ’s Appendix 2014 Executive Summary Executive Summary Why NASCAR? • • NASCAR is the #1 spectator sport in America, drawing a large and geographically diverse audience throughout the year. NASCAR fans consume more snacks than non-fans and their purchase decisions are highly influenced by sponsorship of their sport. Why Mars? • • As the official chocolates of NASCAR, M&M’S, SNICKERS, MILKY WAY, 3MUSKETEERS and TWIX are sought and chosen by fans for their everyday, and race day snacking needs. M&M’S are the #1 mentioned sweet snack consumed by fans on race day. Why 2014 Mars NASCAR Program is Perfect for You! • • • • In 2014, Mars NASCAR Program continues to be “Race Day is Better with M” to remind fans how M&M’S® makes race day better – adding colorful chocolate fun to race day whether fans are at home or at the track. A range of displays offered to meet the snacking needs of NASCAR fans, including both IC and FC displays. Continued POP and consumer competitions will drive excitement and traffic in store and incent purchase. Continued support for the brand with core commercials during select NASCAR races 2014 Consumer Target, Trends & Insights Consumer Target and Key Trends • The Mars NASCAR Program targets the large and geographically diverse casual and avid fan base – approximately 75M consumers • Approximately 60% of NASCAR fans are casual fans; 40% Avids; Most NASCAR fans have never attended a race. • Casual NASCAR fans are typically big sports fans who watch NASCAR as part of their sports programming consumption. • NASCAR Viewership has increased since 2009 • Loyalty to sponsor products has 9increased steadily since 2004 Consumer Insights & Implications Over 70% of NASCAR fans state that sponsoring NASCAR is a strong influence on their purchase decisions. Fans seek and purchase brands that support NASCAR. NASCAR fans recall and purchase sponsor brands more than fans of any other sport. MARS invests to drive awareness and recall among fans so it translates to off-take in store. 10 Consumer Insights & Implications NASCAR fans make more trips to purchase snacks and candy than non-fans Interrupt trips with off-shelf displays to keep MARS NASCAR products top of mind on fan trips. When watching at home, fans mostly consume what is on hand It’s important to display product for pantry-load trips NASCAR fans are on-the-go much more so than non-fans It’s critical to have immediate consumption displays to capture the impulse purchase 11 2014 Segment Opportunity HAS A LARGE AND DIVERSE FAN BASE • NASCAR I is the #1 spectator sport • NASCAR is the #1 sport in fan brand loyalty • NASCAR is the #2-rated regular-season sport on television • NASCAR has over 75M fans. • NASCAR fans are 3 times as likely to try and purchase NASCAR sponsors’ products and services. • NASCAR has broad fan demographics: of NASCAR® fans, 60% are male, 40% female • M&M’S BRAND is the 4th most recognized brand among NASCAR® fans (unaided awareness) • 91% of Consumers know that the M&M’S® BRAND sponsors NASCAR Source: Ipsos, 2010 NASCAR ® Brand Tracker NA 14 has a National Reach Occasions Span the Year Providing Opportunities for In-Store Display Events Q1 Key Race Feb. 26 Daytona MMs March 4 Phoenix MMs March 11 Las Vegas MMs Brown March 18 Bristol MMs March 25 California Interstate April 1 MartinsvilleMMs April 14 (Sat.) Texas Interstate April 22 Kansas Wrigley April 29 Richmond MMs Daytona Las Vegas Bristol Q2 Q3 July 7 (Sat.)Daytona Interstate May 5 Talladega MMs New Hampshire Interstate May 12 Darlington Wrigley July 15 July 29 IndianapolisMMs May 19 All Star RaceMMs Aug. 5 Pocono MMs May 27 Charlotte MMs RWB Aug. 12 Watkins Glen MMs June 3 Dover MMs Aug. 19 Michigan Interstate June 10 Pocono MMs Bristol MMs June 17 Michigan Snickers Aug. 25 (Sat.) Sept. 2 Atlanta Wrigley June 24 Sonoma MMs Richmond MMs June 30 (Sat.) Kentucky MM RWB Sept. 8 All Star Race Charlotte Kentucky Indianapolis Bristol Atlanta Q4 Sept. 16 Chicago Wrigley Sept. 23 New Hampshire MMs Sept. 30 Dover Interstate Oct. 7 Talladega MMs Oct. 13 (Sat.) Charlotte MMs Oct. 21 Kansas MMs Halloween Oct. 28 MartinsvilleMMs Halloween Nov. 4 Texas Snickers Nov. 11 Phoenix MMs Nov. 18 Miami MMs Chicago New Hampshire Texas Key Events When We Win, You Win National Promotion Kickoff Red White & Blue/ M Prove America Race for Chase Halloween Chase/Championship Plan to Win: Display NASCAR All Year, All Markets!! 2014 Program Details Race Day is Better with M will continue to be part of the Year long M&M’s ‘Better with M’ brand activation 17 2014 Strategic Approach Continued focus on reaching casual NASCAR® Fan base with “Race Day is Better with M”™ Message With over 75M Fans, NASCAR® is relevant to all customers nationwide Increased focus on the home viewer to encourage fans to incorporate MARS brands into race day traditions Advertising during races 2014 NASCAR Display Solutions suitable for home viewing parties & events as well as on the go consumption Continued consumer engagement with Quarterly giveaways for consumers via social media Consumers have a chance to win trips to the biggest NASCAR races and other prizes by participating New trade incentive plan will incentivize retailers to take quarterly displays 2014 Marketing Support 2014 NASCAR Program •In 2014 we will offer an opportunity for consumers to win quarterly prizes via facebook. – A call to action on our displays will drive consumers online to discover details of our competition and prizes. • NASCAR ® pack and display range has been optimized to include our best selling products across brands in the most effective and efficient display vehicles. •M&M’S® will provide national advertising and PR support as well as regional and local consumer promotion to drive off-take throughout the 2014 season. Consumer Promotion Overview • Call to action on displays will drive consumers online to enter our quarterly NASCAR competition via Facebook • 4 competition windows throughout the year: •Q1 - Road to Daytona • Consumers can win a VIP trip to the season kickoff in Daytona •Q2 - Spring time giveaway •Consumers can win lots of limited edition NASCAR merchandise •Q3 - Summer giveaway •Consumers can win lots of limited edition NASCAR merchandise • Q4 - Race for the sprint cup 21 •Win a VIP race experience! 2014 NASCAR •M&M’s® advertisements showing during Daytona 500 plus 6 other races (TBD) during 2014 •4 week NASCAR.com partnership Support Calendar 2014 NASCAR® 23 Marketing Support 2014 Season Activation Calendar Q1 2013 Q2 2013 Q3 2013 Q4 2013 Races (Daytona 500) (Coke 600) Retail Support (Show Car/Driver Appearances) Communications (Radio) (NASCAR Displays & Pallets In Store) Merchandising 4 4 ” PR 4 8” 4 0 ” Engagement (Social Media) (Sweepstakes) (Chase Begins) (Championship) Delivery/Performance Dates For All IC & FC Displays Unless Noted Otherwise P1 – P3 Window LOD FDD LDD Performance Pd 3/14/2014 12/30/2013 3/21/2014 12/29/2013 - 3/23/2014 Checkpoint Date P4 – P6 Window LOD FDD LDD Performance Pd 6/6/2014 3/23/2014 6/13/2014 3/22/2014 - 6/15/2014 Checkpoint Date P7 – P10 Window LOD FDD LDD Performance Pd 9/26/2014 6/16/2014 10/3/2014 6/15/2014 – 10/5/2014 Checkpoint Date P11 – P13 Window LOD FDD LDD Performance Pd 12/19/2013 10/6/2014 12/26/2014 10/5/2014 - 12/28/2014 Checkpoint Date 2014 Additional Support Materials Available Assets www.marssponsorships.com Retailer Logo on Back of Car At Track Customer Engagement Luxury Suites Grandstand Tickets VIP Access Logo/Image/NASCAR Media Rights Premiums/Autographed Items Partner Benefits/Discounts Sales Incentive & Consumer Promotions Showcar & Simpod Appearances Kyle Busch Appearances Joe Gibbs Racing Tours NASCAR Racing Experience • Pre-Event Appearance Posters – sent 2 weeks out • Authentic Race Car driven by Kyle Busch (18’ x 7’) • Portable Branded Simulator Pod (3’ x 6’) o Small enough to be used in store • Branded Trailer including Satellite TV airing live racing • 2 brand ambassadors to run simulator and interact with consumers • Kyle Busch Hero Cards and Poster giveaways Retail Coverage Mars Chocolate retail team will visit the top stores closest to the NASCAR® race track to set up Mars NASCAR® displays and POP. The retail team will set up POP, fill dump bins, and move shippers/displays together to create a NASCAR® section in store. If your account does not allow display activity unless authorization from their division manager or HQ, please obtain retail authorization for our retail team to set up displays in your retailers stores around the race tracks. Additional Support Details The following materials are available on salesforce.com: Sell Sheet 30 UPC Guide NASCAR 2014 Distribution & Merchandising Objectives Delivery/Performance Dates For All IC & FC Displays Unless Noted Otherwise LOD FDD LDD Checkpoint Date 1/17/2014 12/30/2013 1/24/2014 Cycle 12 Oct 30 2/14/2014 1/27/2014 2/21/2014 Cycle 13 Nov 27 3/14/2014 2/24/2014 3/21/2014 Cycle 01 Dec 25 4/11/2014 3/24/2014 4/18/2014 Cycle 02 Jan 22 5/9/2014 4/21/2014 5/16/2014 Cycle 03 Feb 19 6/6/2014 5/19/2014 6/13/2014 Cycle 04 Mar 19 7/4/2014 6/16/2014 7/11/2014 Cycle 05 Apr 16 8/1/2014 7/14/2014 8/8/2014 Cycle 06 May 14 8/29/2014 8/11/2014 9/5/2014 Cycle 07 Jun 11 9/26/2014 9/8/2014 10/3/2014 Cycle 08 Jul 9 10/24/2014 10/6/2014 10/31/2014 Cycle 09 Aug 6 11/21/2014 11/3/2014 11/28/2014 Cycle 10 Sep 4 12/19/2014 12/1/2014 12/26/2014 Cycle 11 Oct 1 Sales Objectives NASCAR expected to generate $67.5M Volume Breakdown Pack Singles Sharing Size Packaged Goods - XL Proj. GSV $58.0M $9.5M $19.1M Total: $67.5M INTERNAL USE ONLY GSV Volume Objectives Volume Breakout by Customer/Channel Item Total GSV Everyday Items 192ct Mixed Singles Shipper/Powerwing 168ct Mixed Sharing Size Shipper/Powerwing 2676ct Mixed Singles Split Pallet w/TearPad 1056ct Mixed Singles 1/4 Pallet 1056ct w/TearPad 270Ct M&Ms 42oz/FB 40oz SUP Pallet* $ $ $ $ $ Total $ 67,500,000 8,000,000 9,500,000 5,000,000 25,000,000 20,000,000 Mass Club Drug/Specialty Grocery $ $ $ $ 5,500,000 4,500,000 5,000,000 19,400,000 Value Convenience $ $ 2,500,000 5,000,000 $ 5,600,000 $ 20000,000 $20,000,000 INTERNAL USE ONLY $34,400,000 $13,100,000 Merchandising Insights • Confectionery is the most responsive to quality merchandising, and eye-catching displays indexing at 153% • Confectionery is an Impulsive category, 83% of purchases being unplanned • 79% of shoppers said they had been tempted to buy confection at the spur of the moment • Use displays to tempt the passionate fan and trigger impulsivity by making chocolate more mentally available in-store • 98% of shoppers cover less than half the store. • Placing confectionery in high traffic locations such as lobby, perimeter and front end cap can drive incremental sales by capturing “impulse” purchases. (Lifts range from 12.6% to 55.8%) • Focus on future consumption in lobby when shoppers are purchasing for others and immediate consumption on perimeter for the greatest lift • Arrival (lobby) and departure (front end) are crucial points of display, 100% of shoppers making a purchase MUST pass through these areas. Source: 1-2 Mars Shopper MAJIC, 3- Kantar Retail Create IMPULSE moments with the right packs in the right LOCATION GROCERY Best Practice Location (Indexed to avg. location by pack) 128 Singles 120 140 Packages Perimeter Share Size Lobby Mini’s Lobby Packages Lobby 15 8 Share Size Minatures Lobby Exposure to all shopper missions More likely to purchase for family / others Most responsive to display Singles Front-End 100% of shoppers More Immediate consumption Reward / Treat / Indulgence Low decision time Last chance for “impulse” purchase Source: IRI Display Effectiveness Study 52 Weeks Ending Nov 2011 Mars pack types have been used to represent performance Perimeter High traffic Counter-clockwise traffic flow Shoppers moving quickly Near high demand categories High impulse / low decision time Create IMPULSE moments with the right packs in the right LOCATION - DRUG 191 Singles 163 Minatures 138 Share Size 131 147 Best Practice Location (Indexed to avg. location by pack) Singles Perimeter Share Size Front End Large Bar Perimeter Mini’s Perimeter Packages Front End Packages Large Bar Front-End 100% of shoppers More Immediate consumption Reward / Treat / Indulgence Low decision time Last chance for “impulse” purchase Source: IRI Display Effectiveness Study 52 Weeks Ending Nov 2011 Mars pack types have been used to represent performance Perimeter High traffic Counter-clockwise traffic flow Shoppers moving quickly Near high demand categories High impulse / low decision time The C-STORE CHECKOUT yields the highest lift. FLOOR displays can elicit FAST, IMPULSE purchase and INCREASE basket – Merchandise NEAR categories with high interaction 1 Chocolate Buyers Market Basket 3 100% Chocolate Candy Gas/Fuel Pkgd. Beverages Gum Disp.Hot Beverages Pkgd. Sweet Snacks Tobacco Lottery/Gaming Dairy /Fluid Milk Products Disp. Cold Beverages Non-Choc. Candy Pkgd Ice Cream/Novelties Prep. Hot or Cold Foodsvc. RTE/Pkgd-to-Go Food Edible Grocery Mints/Drops/Breath Fresheners Nutritional and Other Snacks General Merchandise Salty Snacks Salty Snacks of Candy purchases are part of a multi-item basket 61% 59% 2 42% 28% 24% 20% 19% 18% 16% 15% 14% 11% 11% 11% 10% 8% 8% 8% Source: cciPanel, Dec 11/Jan 12 1,302 panelists, 18+ years +18. 7% Singles +22 % Share Size Best Practice Floor Display Location 1. Cold Vault 2. Salty Snack 3. Disp. Hot Beverages / Food Service NASCAR 2014 Displays Immediate Consumption Mixed Sharing Size Powerwing Item # M25028-03 168 Ct. ZREP: 210542 • 48 Ct. M&M’S® Brand Peanut Chocolate Candies Sharing Size, 3.27 oz. • 48 Ct. SNICKERS® Brand 2 To Go Bars, 3.29 oz. • 24 Ct. M&M’S® Brand Milk Chocolate Candies Sharing Size, 3.14 oz. • 24 Ct. MILKY WAY® Brand 2 To Go Bars, 3.63 oz. • 24 Ct. TWIX® Caramel Cookie 4 To Go Bars, 3.02 oz. Mixed Singles Powerwing 45” • 96 Ct. SNICKERS® Bar, 1.86 oz. • 48 Ct. M&M’S® Brand Milk Chocolate Candies, 1.69 oz. • 120 Ct. M&M’S® Brand Peanut Chocolate Candies, 1.74 oz. • 24 Ct. M&M’S® Brand Peanut Butter Chocolate Candies, 1.74 oz. 51.12” Item # 10107374 192 Ct. ZREP: 283345 15.25” 14” 13” 14” With Tear Pad 50¢ Off 2 Mixed Singles Quarter Pallet Item #: 10100997 1,056 Ct. ZREP: 275727 • 288 Ct. SNICKERS® Bar, 2.07 oz. • 192 Ct. M&M’S® Brand Peanut Chocolate Candies, 1.74 oz. • 144 Ct. M&M’S® Brand Milk Chocolate Candies, 1.69 oz. • 144 Ct. TWIX® Caramel Cookie Bars, 1.79 oz. • 108 Ct. MILKY WAY® Bar, 2.05 oz. • 108 Ct. 3 MUSKETEERS® Bar, 2.13 oz. • 72 Ct. SNICKERS® Brand Almond Bar 1.76 oz. 44” 20” 24” With Tear Pad 50¢ Off 2 Mixed Singles Split Pallet 46.38” 41.6” 40” 24” Item #: 10109170 2,676 Ct. ZREP: 285724 • 720 Ct. SNICKERS® Bar, 2.07 oz. • 528 Ct. M&M’S® Brand Peanut Chocolate Candies, 1.74 oz. • 384 Ct. M&M’S® Brand Milk Chocolate Candies, 1.69 oz. • 288 Ct. TWIX® Caramel Cookie Bars, 1.79 oz. • 192 Ct. M&M’S® Brand Pretzel Chocolate Candies, 1.14 oz. • 180 Ct. 3 MUSKETEERS® Bar, 2.13 oz. • 180 Ct. MILKY WAY® Bar, 2.05 oz. • 108 Ct. SNICKERS® Brand Peanut Butter Squared Bars, 1.78 oz. • 96 Ct. SNICKERS® Brand Almond Bar, 1.76 oz. NASCAR 2014 Displays Future Consumption Mixed XL SUP Pallet Item # 10110841 270 Ct. ZREP: 298156 Pallet Contains: 44” 48” 40” • 84 Ct. M&M’S® Brand Peanut Chocolate Candies, 42 oz. • 70 Ct. MINIS MIXTM, 40 oz. • 60 Ct. M&M’S® Brand Milk Chocolate Candies, 42 oz. • 36 Ct. M&M’S® Brand Peanut Butter Chocolate Candies, 38 oz. • 20 Ct. SNICKERS® Brand Miniatures, 40 oz.