Presentation to:

Category Management Association Conference

October 27, 2009

Agenda

What is Storewars?

How Storewars works

Key learning objectives

Program structure

Suggested participants/formats

Storewars clients / countries

Participant learnings/feedback

For more information

What is Storewars?

An exciting, challenging MBA-level business simulation that provides participants with:

• Risk-free environment to test strategic business concepts

• Valuable industry knowledge• Understanding of challenges facing their trading

partners• Negotiating and team building skills

Leading to:

• Improved business results • Increased consumer satisfaction

How We Learn

10% of what we read

20% of what we hear

30% of what we see

50% of what we both see and hear

70% of what is discussed with each other

80% of what we experience personally

95% of what we teach to someone else

-William Glasser

How Storewars Works

Five profitable $100 million companies

• Two retailers• Three CPG manufacturers

Two separate and distinct markets

Two categories

Teams decide marketing, sales and commercial issues

Teams negotiate trading agreements

Decision-Making and Negotiation

Promotions

Cooperative Advertising

Quantity Discounts

Terms of Payment

Production

Positioning Advertising

R &D

Shelf space

AssortmentStore Image

Pricing

How Storewars Works

Decisions fed into computer model

• Simulates 6 month period• 4 decisions / 2 years

Company financial data reports and market research studies provided after each decision

Winners determined by market share and Economic Value Added (EVA)

Learning Objectives of Storewars

Offer insights into manufacturer and retailer relationships

From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.

Cartoon from the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com

Two Different Realities

The Retailer as a Brand!

Learning Objectives of Storewars

Offer insights into manufacturer and retailer relationships

Use enhanced negotiation skills for win-win situations

Learning Objectives of Storewars

Offer insights into manufacturer and retailer relationships

Use enhanced negotiation skills for win-win situations

Work in teams to achieve a group objective

Operate more effectively with other departments in your organization

The Effects of Forward Buying!

Learning Objectives of Storewars

Offer insights into manufacturer and retailer relationships

Use enhanced negotiation skills for win-win situations

Work in teams to achieve a group objective

Operate more effectively with other departments in your organization

Determine business strategy and implement effectively

Tactics Must Support Strategy…

…Or You Don’t Get Results!

Learning Objectives of Storewars

Offer insights into manufacturer and retailer relationships

Use enhanced negotiation skills for win-win situations

Work in teams to achieve a group objective

Operate more effectively with other departments in your organization

Determine business strategy and implement effectively

Transform information into profitable decisions

Provide trading partners/customers with most appropriate information for effective decision-making

Use your time more efficiently to make decisions

From the book Agentry Agenda: Selling Food in a Frictionless Marketplace

by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.

Program Structure

Program activities

• Group interaction/team work• Lectures• Feedback sessions• Team reviews• Key learnings presentations/ discussion

Facilitators (2)

• Coach• Lecturer/discussion leader• Analyst• Administrator

Suggested Participants

Challenging for all levels up to senior management

Retailers, wholesalers, manufacturers, market research providers, ad agencies, consultants

Buyers, category managers, merchandising, sales, trade marketing, marketing, market research

Cross functional learning helpful to other departments such as finance, operations, systems

Main Formats

Corporate course — all participants are colleagues from the same company from the same or different markets.

• Can invite trade partners

Shared course — participants are drawn from 2 or 3 different companies.

Open course — participants come from a variety of companies and mix with peers from across the industry.

24-34 Participants – 29 Optimal

Some Storewars In-House Clients

Ahold

Supervalu

Tesco

Wal*Mart

Metro (Germany)

Metro/Mansour Manufacturing and Distribution (Egypt)

BAT

Cadbury Schweppes

Coca-Cola

Grolsch

Heineken

Kelloggs

Kraft International

Mars

Nestle

Philip Morris International

Sara Lee

Unilever

Wrigley

Hewlett Packard

Hope’s Storewars Countries (outside US)

Hong Kong

China

Indonesia (2x)

Malaysia

Singapore

India (4x)

Thailand

U.A.E. (14x)

Egypt

Saudi Arabia (2x)

Austria

Belgium (6x)

Croatia (3x)

Czech Republic

Hungary

Netherlands (2x)

Poland (2x)

Portugal

Brazil (2x)

Mexico

What Participants LearnedNielsen Open Session - Dubai

Strategy planning before tactics

Find differential from competition

Preparation is everything

Make the most of marketing tools/ research

Individual strengths should be utilised

Try to be in other’s shoes (It is really hard to be a manufacturer!)

“Be POLITE”….especially when you are in trouble

What Do Our Clients Say?

“There are not a lot of training programs out there for retail category managers, but Storewars was an ideal opportunity to help improve the performance of our people while they were under the fire of making decisions.” Michael Knight, Senior Vice President, Giant Food Stores

“It is like a laboratory in which you can put people in stressful situations… You can see how creative people can be.” Michael Knight, Senior Vice President, Giant Food Stores

“The SUPERVALU participants gained valuable insights into how their manufacturer partners prepare for and actually negotiate.”  Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu

“Storewars strengthened the working relationships between our merchandising staff and the manufacturers.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu

”We don’t think this much at work. Storewars gave us a first-hand look at problems faced daily by retailers.” Nick Jay, General Manager, Sales, Al Marai, Saudi Arabia

Programs - 2010

Retailer Sponsored

• Rite Aid• Ahold (?)

Category Management Association Sponsored

• Bentonville• Minneapolis• SF• ???

Other potential sponsors

• Other industry service suppliers• Universities – UCLA (?)

Manufacturer In-House

For More Information

Visit www.cpgcatnet.org/page/storewars/

www.cpgcatnet.org/page/storewars/

For More Information

Visit www.cpgcatnet.org/page/storewars/

Contact Hope Mandel – Shelton, CT

• 203-926-6926 (office)• 203-856-1330 (cell)• hmandel@cpgcatnet.org