Sales Impact Test of

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Sales Impact Test of Label Dollars The
Mushroom Council Cycle 10, 2006
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Background

• The Mushroom Council ran a LD test program
  chain-wide in all Safeway Service Meat Dept.
  Stores.
• Cycle 10, 2006 09/04/06 10/01/06
• 500 Safeway Service Meat Dept stores participated
• Circulation 502,023
• Impressions 2,259,104
• Offer Serving Suggestion Cooking Instructions
• Purpose of this report is to document the LD
  programs sales impact as measured by Matched
  Panel Research executed by MASI International.

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The Promotion

Cycle 10, 2006 9/4-10/1, 2006
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The Promotion
Cycle 10 9/4-10/1/06
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Methodology

• During Cycle 10, 2006 the Label Dollars Mushroom
  Council program ran in all Safeway Service Meat
  Dept stores except 20 Vons stores in which the
  program did not run.
• For this analysis, these 20 control Vons
  stores were matched on the test products base
  period volume with stores where the program was
  installed.
• A total of 15 matched test and control pairs were
  identified.

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Time Periods

• The base period is the twelve week period prior
  to the installation of the Label Dollars Mushroom
  Council promotion in the test stores
• Weeks ending 6/17 to 9/2
• The test period is cycle 10.
• Weeks ending 9/9 to 9/30
• The post period is cycle 11.
• Weeks ending 10/7 to 10/28

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Sales Impact

• Regression statistics were then developed to
  identify the specific brand by brand ratio
  relationship between test and control stores for
  each panel during the base period.
• The T/C Match Index is a measure of the
  variability of the test/control match. A perfect
  match would be an index of 100. The match index
  for The Mushroom Council test was 96.
• These relationships are shown graphically on the
  following page.

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Base Period Match
Test and Control Panel Volume During Base Period
The Mushroom Council
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Sales Impact

• The regression ratio of the test to control
  stores during the base period is then used in a
  predictive fashion in the weeks of the test
  brands Label Dollars promotion program to
  identify the sales levels expected had the test
  promotion not been in the test stores.

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Summary
The Mushroom Council program resulted in a
noticeable sales increase during the test weeks
in Vons stores and continued to show incremental
sales in the post period.
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The Analysis
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Key Learning Implications

• Implication
• Expand consumer know how with a variety of
  recipes and purchase incentives
• Beef or pork
• Poultry
• Seafood
• Stack LD on top of trade activity accelerate
  sell through in continuity periods
• Recipes in reduced price periods
• Coupons in non-promoted periods
• Own this vehicle for the 2007 year
• Expand to network buys
• Expand to Seafood given high basket indice (291)
• Test Deli Given high basket indice (225)
• Additional q-1 learning to gear-up for grilling
  season.

• Key Learning
• LD program significantly increased unit volume
  with just a serving suggestion cooking
  instructions
• 221 incremental units per store
• 111m incremental units chain-wide
• LD effectively accelerated sell-through in both
  reduced price/ad non-promoted weeks.
• Consistent with many other LD participants.
  Getting Safeways attention support.
• Initial results indicate LD can be a strategic
  competitive advantage for The Mushroom Council.
  Additional learning required.

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Recommendation

• Own LD Service Meat Seafood 2007 Network
  Programs
• Q-1, 2007 research program to fine tune program
  design
• Expand to network programs (Safeway, Albertsons,
  Price Chopper)
• ROFR for new chain roll-outs (Albertsons Super
  Value, Wakefern, Stop N Shop, Publix)
• Own 2007 Grilling Season
• Cycle 4-9 Grilling Season SMSF Right Of First
  Refusal
• 30 per store per cycle rate
• Annual exclusivity for fresh vegetable category
  for minimum 8 cycle commitment
• Get additional learning across portfolio
• Expand Offers Executions Across Portfolio
• Coupon values and purchase requirements
• Recipes by meat/seafood type
• Sweepstakes tie-ins
• Experiment with Deli programs

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Invitation to Test Label Dollars

• To encourage brands to test the power of Label
  Dollars, weve developed an intro package that
  includes research and special test cells at a
  very special price
• WHEN Your coupon distributed during choice of
  one cycle
• Cycle 1 01/01 01/28
• Cycle 2 01/29 02/25
• Cycle 3 02/26 03/25
• WHERE All Stores in
• Safeway
• Price Chopper
• Albertsons (Inter Mountain Div.)
• RESEARCH
• Includes Test vs. Control matched panel research
  for each brand by MASI International
• Access to retail basket level data
• Consumer intercept research
• POS test cells (Albertsons and Price Chopper)
• Incremental display test
• PRICING 30 per store (Includes production,
  coupon distribution, and research)
• Deli Department 1,750 stores _at_ 1,750,000 circ. _at_
  52,500
• Meat and Seafood Department 1,500 stores _at_
  1,500,000 coupon distribution _at_ 45,000

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2007 Cycle Calendar