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
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