Align, Aim, Perform and Grow with Shopper Marketing

P2PX September 22nd, 2016

The Clorox Approach

To

inspire you!

Today’s Objective

Whosoever

desires constant

success must

change his

conduct with

the times.– Niccolo Machiavelli

FORESIGHT

Bigger budgets mean more scrutiny

Bigger

Budgets

Increased

Scrutiny

Shopper Digital TraditionalMedia

Trade

Spending Growth Rate

Source: Deloitte

Most feel they Don’t Accurately Measure Shopper Marketing ROI

2015 Annual Trend Report

Measurement confusion

Measure ROI Don’t Accurately Measure

63%

Measure ROI Don’t Accurately Measure

2015 Annual Trend Report

Measurement confusion

to top performer

93%

17%

TopPerforming

PoorPerformers

% That Measure SM

Hub Magazine, 2014

The Top Shopper Marketers

Measure Shopper Marketing ROI

Marketing that Works

Optimize Budgets

Justify Bigger Budgets

38%

Baseball Actions-to-Wins Metrics

ROIMarketReach

SalesImpact

P&LImpact

MarketingAction

Player

SalariesStats Runs Wins

Shopper Actions-to-Profit Metrics

MarketReach

SalesImpact

P&LImpact

MarketingAction

Connect Actions to Profit with Analytics

Cost Rate Lift Rate ROIMarketReach

SalesImpact

P&LImpact

MarketingAction

Measure What Matters

In investing, just like baseball, to put runs on the scoreboard, one must watch the

playing field, not the Scoreboard

Warren Buffet

Measurement Standards

• Accurate to prove Shopper Marketing works and to improve it

– Untangle Shopper Marketing and Trade effects

– Measure Shopper Marketing synergy with Trade

• Comparable to other marketing ROI measurements

Other

MMAS

Sales Contribution

OtherMMAS

Trade

Shopper-Trade Synergy

Shopper Tactics

Coupons

Media

Base

14%

0%

1%

5%

8%

72%

11%

2%

3%

5%

7%

71%

Collaborative Planning Tools To WinWith Your Customers

Brand &

Retailer WinRetailer Win

Brand WinOpportunity

Events

Negotiate Price

Change Tactics

Brand ROI

Cate

go

ry G

row

th

HighLow

Pre-store Tactics Drive

Category Growth

Retailer

Support

Drives

Brand

ROI

Collaborate

to Win

Steps toward measurement mastery

Rough estimate

of the program

as a whole

Easy to do

SM impact is

under counted

Data is difficult

to collect

1-time data collection job

Comparable measurement

Learn What Works

Capture data real time

Planning with deep & broad knowledge

Simulations to create the best programs

Best practices knowledge

Bigger budgets, sales impact and customer relationships

Bump Charts

Marketing

Mix Models

Shopper Marketing

Model

Continuous

Improvement

Clorox’s

Approach to ROI

Strengthenthe

Discipline overall

Shopper Marketing

Our Objectives

articulatethe

Shopper Marketingbrings to the

organization

Need to

value

Our Objectives

differencesin our

classes of trade

Really understand

diverseandportfolio

the

Our Objectives

v

Clorox Diversified Portfolio

Our

Challenges

No standard

approach to measuring

Shopper Marketing

dollars spent at

the field level

A lot of personal

bias regarding

tactics

Complacency: need to constantly

challenge our thinking

Work with

Clorox internally

to align withmetrics as “valid”

AdvancedAnalytics

team

market

Join forces

to identifyoptions in the

with our

Solution

to Go FastGo slow,

• Identified 6 key customers

• Picked 2 Clorox categories

Scoping The Work (Pilot)

Collected all the data from FY14 and

forwarded to Foresight ROI to run models

Our Methodology

Benchmarked $150K+

for activity

5-6 weeks for Foresight

to run analytic models

It took a long time

to gather information!

Data turned over to

Advanced Analytics

for interpretation

Go slow, to Go Fast!

Go slow, to Go Fast

+Homecare

+Laundry Glad

+

Cat Litter

Food

Expanded coverage

What did we learn?

Validation for what we knew

Leverage

seasonality Don’t layer “dollars off”

tactics

Experiment more on

targeted tactics

When choosing

between a lower ROI tactic

and trying something new—

try something new!Partnerships yield a

much better ROI

Tell a cohesive story

along the P2P

The power behind partnerships

PineSol Hispanic Campaign

Loyalty Customer Mailer

Experiment more on targeted tactics

In-store large size

signage to drive

awareness

partnership

Strong display

integration

Feature Ad

.com

Direct Mail

Cohesive story across the P2P

• New Items

• Digital Shopper

Marketing

• Couponing

Digging Deeper

for Other “A-ha’s”

1. Efficiency rates for new items are typically lower than for Base

events

2. Industry shopper spend in support of new items averages

16% of total shopper spend

3. Leverage Base products to drive conversion of new items

4. An offer is key

5. Apply P2P approach, skew heavily to in-store

New Items Learnings

1. Coupons work harder at Mass

and Grocery, while messages

have higher returns at Grocery

and Dollar

2. Despite the higher costs,

coupons earn higher-than-

average ROI’s

3. Instant offers and solution books

are the highest-returning coupon

tactics.

Coupon Learnings

Digital Shopper Marketing Learnings

The percent of

Shopper spend on

digital is at

33%in the industry

1. Industry-wide Events with Digital

have better ROI +47%► Lower costs and have the opportunity for

precision targeting

► More likely to be well integrated full PTP

events

2. Clorox benchmarked below

industry on digital ROI► Learned specific actions to close the gap

The information shaped

our strategy and tactical plans,

going from awful to terrific!- Team Lead Strategic Grocery

Positive Reception

Why is this so important for us?

Let me start by defining Us =

Marketing(Brand and MarComm)

Finance

Shopper

Team

Sales(Both Planning

And Field Sales)

Customers

Helped us to better decide level of investment

across demand creation

Helped us better understand shopper marketing

impact across our portfolio

Gave us visibility to the plan elements that are

“working harder” for us

Why is this so important for us?

SPENDSPRING CLEANING ROI K/O/D RATIONALE

Tatic 1

Tatic 2

Tatic 3

$X.XX

$X.XX

$X.XX

High

Low - Avg

Low

Keep: Rationale here

Optimize: Rationale Here

Delete: Rationale Here

1

2

3

Why is this so important for us?

Helped us to better

decide level of

investment across

demand creation

Helped us better

understand shopper

marketing impact

across our portfolio

Strengthened our

relationship with the

shopper agencies

as we progress our

capability together

Gave us visibility to

the plan elements that

are “working harder”

for us

Identify the specific measurement

challenge for your organization

Audience Takeaways

Consider key internal stakeholders

you need to collaborate with

Realize the resources needed to execute

an ROI workstream of this magnitude

1

2

3

Share!

Share!Share!

Audience Takeaways

Thank you