A Cross-Category Partnership

A Cross-Category Partnership
2014 Events
 May - June $1 off Spreads and Spoonz IRC – field and factory
applied. 70,000 field applied IRCs to be mailed out wo May 19
 August / September Co-Merchandising on 144ct Hershey’s
Spreads shipper display and SOH Pretzels
 November / December Rolo Pretzel Delight – Co-Merchandising
Opportunity, on-pack recipe call out on SOH Minis and Rolos
 December $1 off Spreads and Spoonz IRC
Action Steps:
• Apply $1 off IRCs for May/June program – seek placement of
display near Hershey’s Spreads shelf display
• Contact corresponding Hershey’s account team to identify and
activate opportunities
2
Why does the partnership make sense?
Hershey’s Spreads and Snyder’s of Hanover Pretzels are complimentary
1
2
3
HERSHEY'S Brand HERSHEY'S has stood for
delicious, high quality chocolate
since 1894
Versatility - HERSHEY'S
Spreads have the power to
transform any snack into a
delicious treat
Variety – HERSHEY'S three
flavors bring variety to the
spreads category
1
2
3
Snyder’s of Hanover Pretzels A trusted name in Pretzels since
its founding in 1909
Delicious – Nothing is more
delicious than the salty and
sweet combination of Hershey’s
and Snyder’s of Hanover
Variety- Snyder’s of Hanover
pretzels come in many exciting
flavors that are complimented by
all three Hershey’s Spreads flavors
3
Why does the partnership make sense?
Opportunity to grow retailer baskets by adding Hershey’s Spreads to baskets
The “Sweet & Salty” flavor profile exists throughout the store in singular form,…
…but the Snyder’s/Hershey’s joint-merch proposition will help grow baskets.
=
+
$3.49
$3.79
$7.28
Total Basket
4
Why does the partnership make sense?
Hershey Spreads advertising & in-store coupons will reinforce pretzel usage
occasion and drive trial of Spreads and NEW Snyder’s Spoonz
Save $1 on Spreads & NEW Snyder’s Spoonz
30-wk, $20.2M TV ad campaign launches April 2014
1.00
Save $1 on Spreads & Snyder’s purchase
* All coupon graphics subject to change without notice
5
Why does the partnership make sense?
Significant lifts occur when displayed as a 3 ingredient solution
ROLO Classic CPC Avg Weekly $ Sales1
Hershey Key Retailer, November/December 2012
$199
$129 avg. wkly sales
287% lift
$115
$75
$45
Avg. Before Merch
week1
week2
week3
All 3 ingredients on display
6
Source – 1. Internal Sales
Data, 2- GC Metrics 3Google Analytics
Why does the partnership make sense?
Rolo & Snyder’s of Hanover partnership can drive basket size
$3.39
$3.49
$8.23
$15.11
Total Basket
Last Minute Party Solution
“Rolo Pretzel Treats are perfect for bringing to
holiday parties because they are so easy to throw
together. If I have a last minute party, I can get the
ingredients and put them together within an hour.”
Snyder’s of Hanover “Salty” and Hershey’s “Sweet” make for a formidable partnership
7
What does the partnership entail?
Three execution windows of four Snyder’s/Hershey’s partnership programs
$1 off Rolo, Snyder’s, &
Pecans tearpad executed
by Retail teams
1.00
$1 off Hsy Spreads & NEW
Snyder’s Spoonz IRC
$1 off Hsy Spreads &
Snyder’s bags tearpad prepacked in 144-ct mods
$1 off Hsy Spreads & NEW
Snyder’s Spoonz IRC
8
What does the partnership entail?
A Cross-Merchandising opportunity with Hershey’s Spreads & Snyder’s Pretzels
+
DELICIOUS
1.00
1010
9
Source: Nielsen 12wk ending 3/22/14
What does the partnership entail?
Raise awareness of Rolo Pretzel Delights during Holiday through joint merch
Rolo Pretzel Delights (RPD) quickly transforms 3 ingredients into a delicious sweetsalty treat for any entertaining occasion, combining ROLO’s chewy caramel
and milk chocolate with salty, crunchy pretzels and pecans
+
+
=
The Hershey’s/Snyder’s of Hanover partnership provides growth across skus and categories
10
10
Internal use only
How do we execute it?
Leverage the $1 off IRC to gain cross-merch opportunity
Strategy
May –
Jun ‘14
Own delicious snacking usage occasion
Step 1: Hershey CSE contacts Snyder’s selling rep to
gain alignment on program
Tactics
Step 2: If applicable, solicit Spreads buyer for add’l order
of Hsy Spreads orders to support $1 off IRC coupon
Step 3: Determine merch options with buyer and store
ops KDM
Step 4: Snyder’s affixes $1 off IRC on NEW Spoonz bags
Result
Build bigger baskets by leveraging IRC to merchandise
NEW Snyder’s Spoonz next to Hershey Spreads
3-tier
D88681
11
Internal use only
How do we execute it?
Back to School is perfect time for snacking occasion
Strategy
Own delicious snacking usage occasion
Step 1: Hershey CSE contacts Snyder’s selling rep to
gain alignment on program
Tactics
Aug
Nov –––
Nov
Sep
‘14
Dec ‘14
Dec
1.00
Step 2: If applicable, solicit Spreads buyer for add’l 144ct Spreads shippers to support $1 off tearpad coupon
Step 3: Determine merch options with buyer and store
ops KDM
Step 4: Affix $1 off tearpad coupon to all merch vehicles
Result
Build bigger baskets by leveraging the tearpad coupon
pre-packed in the 144-ct mod to merchandise Snyder’s
pretzels next to Hershey’s Spreads
12
How do we execute it?
Internal use only
Present Rolo Pretzel Delights opportunity during Holiday discussion
Strategy
Nov –
Dec ‘14
Maximize Rolo Pretzel Delights sales
Step 1: Hershey CSE contacts Snyder’s selling rep to
gain alignment on program
Tactics
Step 2: Sell-in compelling Holiday snacking solution to
buyer that drives increased basket ring by securing
circular, website, and off-shelf display placement for RPD
Step 3: Determine merch options with buyer and store
ops KDM
Step 4: Retail teams affix $1 off tearpad to all merch
vehicles
Result
Gain off-shelf joint merchandising of Rolo, Snyder’s, and
pecans by leveraging $1 off tearpad coupon
* All coupon graphics subject to change without notice
13
Internal use only
How do we execute it?
Leverage the $1 off IRC to gain cross-merch opportunity
Strategy
Nov –
Dec ‘14
Own delicious snacking usage occasion
Step 1: Hershey CSE contacts Snyder’s selling rep to
gain alignment on program
Tactics
Step 2: Hershey CSE solicit Spreads buyer for add’l
order of Hsy Spreads orders to support $1 off IRC coupon
Step 3: Determine merch options with buyer and store
ops KDM
Step 4: Snyder’s affixes $1 off IRC on NEW Spoonz bags
Result
Build bigger baskets by leveraging IRC to merchandise
NEW Snyder’s Spoonz next to Hershey Spreads
* All coupon graphics subject to change without notice
3-tier
D88681
14
What does success look like?
15
Success is bringing a snacking solution to the shopper that drives growth for all parties
Summary
 Snyder’s of Hanover “Salty” and Hershey’s “Sweet” make for a
formidable partnership
 The Hershey’s/Snyder’s of Hanover partnership provides growth
across skus and categories
 Plan, Align, and leverage Hershey Retail Team and Snyder’s-Lance
Sales team to execute
 Success is bringing a snacking solution to the shopper that drives
growth for all parties
Partnership note: Snyder’s–Lance, Inc. and The Hershey Co. have agreed to mutual rights of 1st negotiation on any
promotion/program that includes confection, chocolate-based spreads, and pretzels. Please consult with your Business
Manager and Consumer Promotions before you discuss cross-promotions with any competitive pretzel manufacturers.
16