strategy 15
‘
THE PLAYBOOK
Kraft Food Group’s
Strategic Guide to
Category Leadership Success
INSIGHTS. FORESIGHT. GROWTH.
2 | The Playbook | By The Numbers
KRAFT FOODS GROUP is a
largest
We are one of the
Food & Beverage companies
in North America.
We are in A LOT of households:
penetration in North America.
98%
We play in
46 CATEGORIES,
in nearly every aisle!
We interact socially with consumers.
110,000 social media posts a day
We drive shoppers to stores with powerful
advertising, leading our categories in
share of voice.
Greetings | The Playbook |
Industry colleagues,
We are in a challenging time in the food and beverage
industry. Our business sector is growing dollars in the
1-1.5% range, while both units and packages are flat to
declining. In addition to soft consumption, we are seeing
a decline in trips and basket size. We also see changes
across categories, many of which are hindering their
ability to drive a trip to the traditional grocery store.
Healthier options, snacking and protein-focused meals
and snacks are on the rise while non-foods and pantry
products see accelerated softness.
Consumers continue to change, adding to these headwinds. Hispanic and multicultural
households are driving growth in new and bolder flavors. Smaller households are
searching for convenient options and smaller portions. And Millennials seek foods to
fuel their 24-7 lifestyles. We continue to see bifurcation expand and both low- and
high-income households are redefining value. Value is realized beyond price. Product
bundles and in-store experiences are increasing in relevance. Across outlets and
categories, consumers seek brands and solutions to simplify their lives.
Ultimately, these changes and challenges are resulting in a new shopper demand.
Shoppers are looking for quality products, food inspiration and a shopping experience
that simply makes sense. They are selecting and de-selecting product categories based
on many factors beyond price, and they are selecting shopping outlets based on a
connection with the retailers.
At Kraft Foods, we are committed to serving both our consumers and our retailers’
shoppers. We are well on our way to unlocking untapped opportunities and growth
potential across segments and demographics. And we look forward to the years ahead!
Best,
Art Sebastian
Vice President, Category Leadership & Shopper Insights
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
3
4 | The Playbook | Category Leadership
Category Leadership:
A combination of growth, innovation and the
ability to bring value to our customers by way of
value-driven insight and foresight that helps deliver
category growth and profitability.
S
S
S
S
S
environment
Vision: To be an indispensable business partner to our customers
Mission: Drive category growth by meeting consumer and
shopper needs
Setting out to accomplish both the company’s vision and mission,
Kraft’s Category Leadership teams have developed unparalleled
strategic approaches across the store to drive traffic and basket size in
a shopper-centric manner.
The Kraft Process | The Playbook |
THE KRAFT PROCESS
Key strategies that come together to take retailers to new levels:
Right Shopper Insights
Right Categories
Right Center Store Experience
Competition and fragmentation at grocery create a challenging retail environment. A
holistic approach to Category Leadership must appreciate and act upon today’s unique
obstacles at retail, as well as an ever-evolving consumer and shopper.
7.0%
5.0%
TOTAL STORE VOLUME
GROWTH BY DEPARTMENT
Bakery
Produce
3.0%
1.0%
Deli
Meat
Total
Store
Grocery
-1.0%
Dairy
Seafood
Frozen
-3.0%
CENTER STORE
PERIMETER / FRESH
Source: Nielsen Perishables Group FreshFacts® Total U.S. (FCA, does not include convenience, drug or dollar) 52 weeks ending 5/11/2014 vs. Year Ago
and Total U.S. - All Outlets Combined, plus Convenience ending 5/11/2014 (UPC only)
To tackle these challenges, set a strong business foundation with an in-depth
understanding of the New Era of Retail: Shopper Power. Use this PLAYBOOK as the
key to: getting the basics right, driving category growth, and ultimately allowing us to
Reimagine Center Store. Kraft has the insights, expertise and strategies!
MANUFACTURER
POWER
1970/80s
ERA OF
SUPPLY
RETAILER POWER
1990s
ERA OF
EFFICIENCY
SHOPPER POWER
2000s
Today & Tomorrow
ERA OF
CHOICE
ERA OF THE
SHOPPER
Source: Nielsen Cambridge Group
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
5
6 | The Playbook | Insights
UNDERSTANDING
shoppers
Shopper Insights team. From left to right: Ruthann Wilson, Crystal Pinkston, Art Sebastian, Michael Wechselberger, Mark Stephens.
Consumer insights lead to the most successful plays and winning record in any game,
and certainly Category Leadership is driven by insights. Kraft digs deep and builds strong
foundations for programs based on key findings and in-depth understanding.
Deep insights and tremendous resources from Kraft Food Group provide holistic solutions
to appeal to key cohorts as well as the total market, including a deep understanding of:
Influential Cohorts
Seasonal Opportunities
Drivers of Shopper Loyalty
Insights | The Playbook |
7
influential cohorts.
Millennials will become an increasingly
IMPORTANT generation.
2014
77 MM
MILLENNIALS
77 MM
BOOMERS
2030
78 MM
MILLENNIALS
56 MM
BOOMERS
Source: BCG “How Millennials Are Changing the Face of Marketing Forever” Jan 2014, Nielsen “Millennials- Breaking the Myths” Feb 2014 and Nielsen.
Millennials, also known as Generation Y and Echo
Boomers, are emerging as one of the most important
demographics for future growth.
Millennials impact all areas of retail, spanning multiple life stages and delivering
substantial buying power. They will dominate the marketplace for the next 30 years!
However, an in-depth examination of this market shows they are very different than
Gen X and Baby Boomers, a critical factor to winning.
Millennials are:
More ethnically and culturally diverse than older generations
Immersed in food culture, seeking less processed foods and more nutrition, inspired
by ethnic cuisine, shopping in the moment, and have more out-of-home options
Have developed attitudes and behaviors shaped by unique circumstances as they grew
up – technology immersion, doting parents, cultural diversity, and financial stress
Seeking self-expression, excitement, connection and authenticity in all facets of
their lives
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
8 | The Playbook | Insights
seasonal opportunities.
DELIVER on your shoppers’
expectations for every SEASON.
Capitalize on familiarity.
Consumers tend to grocery shop for the holidays and get-togethers where they
normally shop because:
Familiarity saves consumers time.
They know they can get what they need.
How can you leverage store familiarity and loyalty to ensure simpler shopping for
customers, and more profitable visits for you?
Capitalize on family.
Time spent connecting with family and friends involves food every season. Each
generation contributes in different ways. Prepare for them all.
Think creatively.
Seasonal occasions and celebrations
can be as informal as a sports event
or a simple BBQ. Provide relevant
marketing and merchandising materials
throughout the year.
Leverage fresh departments to connect
more effectively with Center Store and
increase basket ring.
drivers of
Insights | The Playbook |
shopper loyalty.
TODAYwe’re in an era of the SHOPPER
and you must have all of the parts of the SHOPPER-LOYALTY EQUATION
in place to WIN. And loyalty starts with a fresh commitment.
14 minutes
7 minutes
7 minutes
Dinner and
Inspiration
Breakfast
Beverage
Lunch
Snacking
General
Merchandise
and Non Food
Provide category
/department
differentiation
and inspiration.
Offer functional
/highly promoted
items. It’s an
opportunity to
build the basket.
Provide larger size,
frozen items,
impulse snacks
and CSDs.
Source: Kraft Internal Data.
Provide an easy
shopping experience!
Today’s shoppers are time-zapped:
the average shopper spends less
than 30 minutes in store. As a
result, they now shop with optimum
efficiency. To better engage them,
you need to provide a smarter
assortment that’s always in stock,
with the correct allocation of space,
in easy-to-find adjacencies.
What does your brand stand for? Keep store messaging consistent,
both in store and out of store.
Provide Occasion Zones so shoppers can find meal solutions by
types/day parts.
Leverage fresh departments to connect more effectively with
Center Store.
Meal-occasion and occasion-based layouts hone in on appropriate
adjacencies traditional to shoppers, while some level of innovative adjacencies
appeals to shoppers’ openness to inspiration.
Our research indicates:
Shoppers are looking for affordable meal solutions in-store.
Dinner continues to be a key occasion where shoppers need ideas and
in-store solutions.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
9
10 | The Playbook | Category Leadership Plans
Here you’ll find category-specific
insights on Kraft Food Group’s CLPs
that will help make playmakers out
of your unique retail assortment and
overall shopper experience.
Category Leadership Plans | The Playbook |
Business Unit team. From left to right: Darlene Ampe, Liza Veron-Jackson, Art Sebastian, Heather Crowder, Melissa Samuta.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
11
12 | The Playbook | Category Leadership Plans
O S C A R M AY E R
O S C A R M AY E R
State of the category
State of the category
Cold Cuts is the largest category in the Packaged
Meat Case, mainly used in sandwiches. Some 94%
of consumers are eating sandwiches at least every
other week, and as tastes evolve, sandwiches remain
a consistent favorite - growing 25% since 2006.
Recent dips in cold cuts sales have been driven by
consumers trading both up to deli and restaurant
sandwiches, and out to less expensive protein options,
such as tuna and peanut butter. Cheaper protein
sources have also been offering flavor innovation,
more convenience options and value prices. As
fast-food restaurants offer “value menus,” packaged
cold cuts are challenged with many other sandwich
options. Consumers also look to service deli for
sandwich options – although growth has also slowed
at deli, with pound sales flat over the last few years.
Growth drivers
Strong, spicy flavors drive excitement with
consumers and are on trend in both grocery and
restaurant menus. Flavor innovation will be a key
growth driver, as consumers seek the interesting
flavors that they have grown to love when eating
out – bold flavor meats are especially relevant to
Millennials, Hispanic consumers and even Boomer
households.
Value will be a growth driver. The Packaged Meat
Case must offer a full spectrum of “good, better,
best” options – signaled by meat type and cut, and
by package.
Consumers LOVE bacon, and in spite of
commodity-driven price increases over the past
several years, bacon consumption continues to
escalate. Away-from-home dining trends in using
bacon and bacon-inspired flavors offer consumers
new ways to enjoy bacon, inspiring new uses and new
bacon occasions at home. The category comprises
three main segments – raw bacon, turkey bacon,
and fully cooked bacon – generating more than $4
billion in annual sales. Raw bacon is the mainstay
at 80% of the category. While turkey bacon is
smaller at 7% of sales, it is growing at a fast pace
as consumers look for healthier ways to enjoy this
tasty treat. Fully cooked bacon gives consumers a
convenient way to enjoy bacon, without the prep and
time required for cooking.
Growth drivers
About 70% of manufacturer cost of bacon is the
commodity, and so managing commodities is the
key to driving growth in this category.
Innovation in uncured and turkey bacon will satisfy
consumer desire for “Better For You” bacon.
Flavor innovation offers consumers even more
reasons to love bacon.
Snacking is an emerging opportunity in bacon,
as in other categories – bacon jerky innovation
offers consumers new options in protein snacking.
O S C A R M AY E R
Category Leadership Plans | The Playbook |
O S C A R M AY E R
State of the category
State of the category
Generating $2.5 billion in yearly sales, hot dogs
drive traffic, with high HH penetration (2012
HH penetration ~ 72% HH), although this has
declined slightly over the past decade. Hot dogs
are especially relevant to Hispanic consumers, as a
versatile and economical meat option for everyday
family meals and entertaining.
Growth drivers
Hot dogs are an experience, not just a meal.
Merchandising hot dogs within grilling-themed
events, such as for summer holidays and football
tailgating, are critical to reminding shoppers that
everyone loves the great taste of hot dogs when
celebrating with friends.
The Refrigerated Meal Combos category is on
fire, with average annual growth of 4% - outpacing
many other categories. This $1.2-billion category
was traditionally known as “lunch for kids,” but
with a burst of innovation the category now serves
breakfast, lunch and snacking occasions – for kids,
teens, adults. For everyone. Combos are extremely
relevant to changing consumer needs: they are
versatile meeting today’s eating occasion needs,
protein-based, and easy to grab and eat on the run.
Growth drivers
Growth will be driven by innovation that meets
consumers escalating needs for portable, onthe-go meals and snacks. Meal combos are
protein-based, making them a perfect option for
busy lifestyles, for both kids and adults.
Continuing to bring new users into the category
with innovation that attracts younger kids as well
as teens, Millennials and other adults is another
key to driving category growth.
Given that Hispanic consumers are projected to
account for 70% of hot dog category growth in
the coming years, catering hot dog products and
events to Hispanics is important.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
13
14 | The Playbook | Category Leadership Plans
O S C A R M AY E R
C H E E S E & DA I R Y
State of the category
Snacking has become a fourth meal occasion and
thus consumers have sought out healthier options
than traditional snack food. Flavor variety is critical
for both retailers and consumers- as trends show
that retailers with broader cheese flavor assortments
have higher category velocities and consumers value
the choices. Protein snacking including dairy is a
$19-billion category, and cheese snacking is growing
at a 6% rate.
State of the category
Protein Snacking taps into many big trends important
to consumers today, including high-protein snacks,
small meals throughout the day and on-the-go
consumption trends. A $19-billion category, protein
snacks are poised for remarkable growth. In the meat
segment, in particular, protein snacking will bring new
eating occasions to the meat case, carrying as much
as $500 million in meat snacks opportunity.
Growth drivers
Some 75% of adults are adding more protein
to their diets as the growing recognition of the
power of protein influences their food choices.
Innovations and commitment to this newer
segment will drive growth and put retailers on the
cusp of a new snacking trend.
The power of meat, cheese and nuts combined
makes a very protein-rich snack, one that Kraft
is activating against with a rich pipeline of protein
snacking innovation that will meet the needs of a
broad group of consumers and shoppers.
Growth drivers
Building a cheese-snacking section would deliver
remarkable growth, as shopper data indicate that
shoppers spend more time in snacking cheese
than in all other cheese segments. Further, many
consumers already snack on cheese but just don’t
think of it as a distinct segment. Streamlined
shelves that make a snacking destination within
the dairy case would simplify the shopping process
by more overtly
delivering dairy as a
snack option.
The influential
Millennial
population
creates expansion
opportunities
through Adult
Snacking Cheese,
which has the
second-fastest
dollar growth of any
segment.
C H E E S E & DA I R Y
Category Leadership Plans | The Playbook |
C H E E S E & DA I R Y
State of the category
Cheese is the largest category in the dairy
department, driving growth and margins, especially
notable when restaurant traffic declines and
consumers turn to cooking at home. According
to Nielsen, more than two thirds of all consumers
purchase chunk and shredded cheese, purchasing
more than 7 lbs. and 8 lbs., respectively.
State of the category
Cream Cheese is a key driver of growth in the dairy
department and has a true margin higher than the
dairy average. Brand is the foundational element
used to shop for cream cheese, indicating that
uncluttered shelves and a balanced assortment
could further drive growth. Flavors account for
35% of soft cream cheese dollar volume and
more than half of the growth in this segment. The
Philadelphia brand leads and drives this category.
Growth drivers
The 10% rise of at-home breakfast consumption
presents strong growth opportunities for the
cream cheese category. As more consumers
look for minimally processed foods, cream
cheese with short, fresh and non-processed
ingredients can help grow this category.
Growth drivers
Growth in at-home cooking occasions and the
percentage of cooking occasions that include
cheese, chunks’ and shreds’ predominant usage
occasion, point to a positive future outlook.
Chunk cheese is the most versatile in usage
occasions – spread across cooking, sandwichmaking and snacking – and is well-positioned for
continued growth.
Delivering authentic/less processed products,
with a focus on health and wellness; offering
up flavor and experience; and responding to
shoppers’ desires – and needs – to cook at
home for the experience and the money-saving
benefits.
A focus on best-selling new and core products,
as well as on-trend segments and flavor variety,
while de-emphasizing low-velocity SKUs would
bolster growth.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
15
16 | The Playbook | Category Leadership Plans
C H E E S E & DA I R Y
MEALS & DESSERTS
State of the category
Dry Packaged Desserts are important to the dessert
baking aisle, as the category generates the secondhighest unit sales and third-highest dollars within the
baking aisle. However, the category has experienced
declines in household penetration and trips, mainly
from the sugar-free segment. But given that dessert
maintains relevance with dining occurrences, the
category is poised to grow with new households and
expanded usage occasions.
State of the category
Sandwich cheese alone is larger than most categories
within dairy and is a top contributor to department
growth. From a true-margin perspective, sandwich
cheese is almost nine points higher than the dairy
average and comprises almost 50% of cheese usage!
Sandwich cheese buyers are the most influential to
total cheese category with 83% buyers purchasing
across other cheese categories. Nielsen reports that
overall, dairy is expected to grow 13% over the next
three years, with cheese the key driver to this growth.
Growth drivers
Sandwiches are a growing food trend in the home
and at restaurants, and cheese plays a critical
role in sandwiches! Cheese usage is growing
and expanding beyond lunch, and there is ample
opportunity to leverage consumer trends driving
these expanded usage occasions.
Authentic, less processed foods with high-quality
and sophisticated taste profiles can positively
impact this segment, while new flavors and
experiences will entice consumers to break from
tradition and thus seek incremental products.
Growth drivers
Reignition of DPD category growth will be driven
by engaging Millennials in activities that are core to
their lifestyle. For younger families, “Snacktivities”
that include simple snacks created together by
parents and children are a great way to engage this
critical group of consumers. Seasonal, licensed
and core mold kits allow for renewed interaction
with the category. Millennials who purchase mold
kits buy 55% more DPD than the average DPD
consumer.
Relevant mold kits will also drive increased
category interaction among Millennials without
kids for key social occasions. University molds kits
are available across 20 schools in 2014, engaging
football fans as the season begins. Some 21% of
consumers purchasing mold kits are new to the
category.
MEALS & DESSERTS
Category Leadership Plans | The Playbook |
MEALS & DESSERTS
State of the category
Boxed Dinners represent a $3-billion category with
household penetration greater than 80% and a
stable number of shopping trips. In total, dry boxed
dinners comprise seven segments, including: Mac
& Cheese; Meal Starters; Bowls/Instant Meals;
Noodles & Sauce; Pasta Salad; Entrees; and Kits.
Mac & Cheese drives category growth and helps
offset slight declines in household penetration and
trips.
State of the category
The Refrigerated Desserts category is a
$600-million category with 27% household
penetration. Snacking is the primary consumption
occasion and typically occurs at lunch time,
afternoon, and evening after dinner. Consumers
here seek more indulgence, as well as convenience.
Growth drivers
A desserts destination will drive everyday usage,
as the refrigerated section, in general, often
presents shoppers with navigation challenges.
Optimized shelves with effective messaging
and merchandising, paired with a good-betterbest strategy will enable retailers to develop this
refrigerated destination category and drive sales.
Growth drivers
Growth will be driven by meeting the meal
occasion needs of increasingly busy lifestyles,
as consumers seek flavorful, healthy, affordable
items to make for their families.
Health and wellness is an important attribute
to this category. By embracing innovation and
the better-for-you desires
of shoppers, this category
can appeal to an even
broader audience with an
assortment focused on
traditional items, as well as
healthier items.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
17
18 | The Playbook | Category Leadership Plans
B E V E R AG E S
B E V E R AG E S
State of the category
Kid’s Single-Serve Beverages certainly fill a need for
tasty, fun and refreshing hydration, as RTD pouch
penetration nearly doubles in households with kids,
though sugar-sweetened drinks and juices for kids
have declined as consumers seek better-for-you
options. Expanded kids’ beverages retail sales have
gone up 1% in the past year to reach $18 billion, with
better-for-you options including bottle water, sports
drinks, and milk leading the charge.
Growth drivers
Retailers must deliver on pricing and
merchandising to drive impulse purchase.
State of the category
With its high shopper engagement, new innovation
and ability to drive trips, coffee is one of the fastestgrowing categories in the store. Top retailers carry
more variety across coffee segments, including
mainstream, premium, soluble, and on demand.
Growth drivers
Retail coffee expansion will be driven by at-home
trade up, sourcing away-from-home occasions,
and incremental occasions at home.
Premium, in particular, drives sales growth as
shoppers satisfy the desire to brew café-quality
coffee at home while on-demand continues to
drive convenience.
Optimize brand and flavor space/assortment to
drive growth here, and capitalize on the impulsive
nature of the ready-to-drink segment.
B E V E R AG E S
Category Leadership Plans | The Playbook |
S N AC K N U T S & E N H A N C E R S
State of the category
Snack Nuts & Seeds is a large, growing and highly
profitable category, perfectly aligned with today’s
healthy-snacking movement. Reporting some of
the highest growth in salty and wholesome snack
categories, Nielsen reports nearly two thirds of all
households purchase product in this category.
Growth drivers
State of the category
Beverage Mixes is expected to grow 2.4% with
sales reaching $1.9-billion by 2016, strengthened
by new products. Beverage mixes hold a unique
link to tap water, with a significant number of
consumers indicating that beverage mixes help
them consume water.
The snack nuts and seeds category has great
positive momentum driven by growth in
the snacking occasion, the positive health
proposition this category provides, as well as the
portability that makes it convenient to consume
whenever, wherever.
To capitalize on this momentum in store, there
is opportunity to expand space, focusing
distribution on brands and nut types that are
incremental to the assortment, as well as
improve category adjacencies to create a total
smart snacking solution.
Growth drivers
Innovation is a key driver in the beverage mix
category and will continue to bolster sales.
Flavor variety is important, though space
pressure creates a need for optimization and
many brands in the category are not driving
incremental shoppers and dollars.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
19
20 | The Playbook | Category Leadership Plans
S N AC K N U T S & E N H A N C E R S
S N AC K N U T S & E N H A N C E R S
State of the category
Holding some impressive titles in the condiment aisle
– highest spend per trip, second-highest dollar share
and third-highest purchase frequency – the Mayo/
Whipped Dressing category is present in more than
three-quarters of U.S. households. However, the
category faces threats that could impede future
growth, as sandwich consumption is increasing
outside the home and shoppers seek healthier
alternatives.
Growth drivers
State of the category
The largest category in the condiment aisle, Salad
Dressing plays a vital role in driving sales and traffic
to the aisle, as well as cash flow to the bottom line.
However, a decline in shelf-stable dressing purchases
and lost households generate concern as competitive
pressure from restaurants and refrigerated dressing
has increased.
Growth drivers
Restaurant-inspired salads as a main dish continue
to be the fastest-growing center-of-plate option
for consumers, helping propel the salad dressing
category forward.
A focus on fewer, fresher ingredients, simplifying
the shopping experience at shelf and increasing
consumer relevance are vital to further unlocking
shelf-stable category growth potential.
Category growth relies on a targeted focus against
key growth cohorts, including Baby Boomers,
Millennials and Hispanics.
Further, increasing
relevance through
the creation of mealsolution offerings to
expand usage occasions
and focusing on
diversified, on-trend
product offerings will
also encourage new
buyers to enter the
category.
OUR
Reimagine Center Store | The Playbook |
Reimagine Center Store
platform addresses consumer and shopper needs, the
influence of evolving retail channels, and the business
challenges across center-store and total food and
beverage.
Today is the time to start this journey and build shopper
loyalty — today, tomorrow and well into the future.
OUR PATH TO A WIN FOCUSES ON:
NOW
NEXT
FUTURE
Getting your basics right.
Realigning your adjacencies to
create destinations.
Reimagine Center Store
to create an overall
shopper experience
Our Reimagine Center Store platform
demands team thinking and new plays to
elevate shopper experiences.
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
21
22 | The Playbook | Reimagine Center Store
Reimagine Center Store
Our
platform will
deliver productivity in store aisles and increase shopability.
CENTER STORE REALITY CHECK:
SHOPPERS DON’T SPEND MUCH TIME IN CENTER STORE
MYTH:
REALITY:
Shoppers are generally satisfied
with Center Store
Shoppers don’t spend much time
in Center Store
Total Store Sales
Center
Store
Shopping Time
73%
Perimiter
27%
Center
Store
18%
Navigation/
Checkout
44%
Perimiter
38%
2013 Grocery SuperStudy Report: “Center store departments combine to generate 72.3% of total store sales
and 75.4% of total store true profit.
*Nielsen Insights: changing thinking about center store: According to retail consultant Willard Bishop, Center
Store accounts for 73 percent of total dollar sales and 77 percent of gross profit for the grocery channel.
Acosta Hot Topic - Center Store - Mar 2013: “According to a Video MiningTMstudy of over two million shopping
trips, the average shopping trip is just under 13 minutes, with 39% of the trip spent shopping in the perimeter and
only 18% occurring in center store. The remaining 44% of shopper time is spent navigating the store and waiting in
checkout lines.”
Reimagine Center Store | The Playbook |
There are ways to address this trend and redirect shoppers to fully
engage in Center Store aisles.
To maximize aisle flow, critical plays include: optimizing assortment,
adjusting category space appropriately,
and building strategic adjacencies. This will result in shopper
satisfaction and a delightful shopping experience.
Provide easy shopping experiences with an overall improvement on
how shoppers navigate the store.
MYTH:
REALITY:
Shoppers enjoy the experience of
shopping Center Store
Shoppers don’t spend much time
in Center Store
Go up/down
most center
store aisles
Only go in
select aisles
to get what’s
needed
08 Smart Revenue COS Final Report: “Qualitative shop alongs reveal that shoppers employ active strategies to avoid going into COS aisles in order to shorten
trip duration and avoid frustration. These include: 1) Using perimeter as a location to peer down aisles and avoid unnecessary aisles 2) Buying off endcaps when
possible so that shopper does not have to go down the aisle 3) Turning around and leaving aisle upon product selection, thus avoiding walking the full aisle”
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
23
24 | The Playbook | Reimagine Center Store
It’s time to REIMAGINE
assortment, space, adjacency.
What
are your
competitive
threats?
Do you have
the right
mix for your
shopper?
What
is the
category
role?
Is there
room for
innovation?
What
is your
retailing
strategy?
Is each
How is
brand/item
Shop-ability?
incremental?
Change the layout in a few key ways:
Organize by meal occasion
Connect perimeter with Center Store
Inspire and engage shoppers within the aisle
Optimize assortment balancing shopper needs
and category profitability.
Reimagine Center Store | The Playbook |
Kraft’s commitment to Category Leadership
and Reimagine Center Store is at the heart of
strategies across the company and critical to
our retailer partnerships.
Retailer collaboration
Shopper insights
Category growth
Innovation
Reimagine Center Store
Find out more at KraftCategoryLeadership.com
INSIGHTS. FORESIGHT. GROWTH.
25
26 | The Playbook | Partner With Us
Center Store team. From left to right: Mollie DeBrie, Rachel Forgus, Joe Conway, Dave Kuhn, Art Sebastian, Dan Sarullo, Carolyn Cozad.
Partner With Us | The Playbook |
If you want even more
insights on making
plays and creating a
winning strategy based
on the Kraft Food
Group’s PLAYBOOK,
please partner with us
today.
www.kraftcategoryleadership.com
INSIGHTS. FORESIGHT. GROWTH.
27
Let us show you how our businessbuilding insights and in-store
activation strategies can help
differentiate you in your marketplace.
How can you re-imagine
your center store
and re-energize shopper loyalty?
Get the facts, innovative ideas and
actionable approaches that create a full
store experience to drive shopper loyalty.
Find out more at
KraftCategoryLeadership.com/centerstore
©2014 Kraft
INSIGHTS. FORESIGHT. GROWTH.
Let us show you how our exclusive
insights and in-store activation
strategies can help drive more
customer trips.
Get the facts, actionable ideas and
innovative approaches that will keep
customers coming back.
Find out more at
KraftCategoryLeadership.com/loyalty
©2014 Kraft
INSIGHTS. FORESIGHT. GROWTH.
Let us show you how our businessbuilding insights and in-store
activation strategies can help drive
more trips and baskets.
Get the facts, innovative ideas and
actionable approaches that will keep
shoppers coming back.
Find out more at
KraftCategoryLeadership.com/seasonal
©2014 Kraft
INSIGHTS. FORESIGHT. GROWTH.