Marketplace Intelligence Services

Introduction

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BrandTruth Clients

BrandTruth has enjoyed recurring contracts from large brand-marketers looking to gain an edge on competition utilizing our

unique research approaches & actionable reporting.

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BrandTruth ExperiencePartial List of Channels/Retailers Studied

CE OPSS Mass Clubs Grocery1 Grocery2 Supercenter Drug

Best BuyRadio ShackBrandsmartFry’sMicro CenterApple

Office DepotStaplesOfficeMax

Wal-MartTARGETSears

COSTCOSAM’S CLUBBJ’S

KrogerAlbertson’sSafewayHEBPublixBasha’sBiLo

Whole FoodsTrader Joe’sSave MartWegmansPathmarkRaley’sRalph’s

TARGETWal-MartMeijer

CVSWalgreensRite AidEckerd'sLongs

C-Store

Dept.Store

Specialty Retail

General Merch &

Misc.Sporting Goods Hardware

Mobile-Social

On-Line7-11ChevronArcoConacoBPShellExxon-MRace-T

NordstromMacy’sJC PennyBon Ton

ToysRusGame StopFred MeyerThe GapVanity Fair CorpDisney StoresLu-Lu LemonBarnes & NobleFYELimited BrandsAT&T wirelessStarbucksIndividual Specialty

Kohl'sMeijerKinko’s/FedEx

Dick’sSports AuthorityChampsNIKETOWNGaylansFoot Locker (all formats)Foot ActionFinish LineGI Joe’sREI

Home DepotLowesOshmans

TargetBest BuyJC PenneyShopKick RetailersMacysThe Sports AuthThe North FaceColumbiaNintendoUnder Amour

BrandTruth – Unique Approach

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Not Traditional Research Backgrounds

New Dimensions of Marketplace Intelligence

Invisibly Measure Behaviors & Attitudes

We Go Where Consumers/Shoppers Gather

Marketing – Branding – Retail

Natural Elicitation Method

Stealth Observation & Engagement

Fast & Actionable Intelligence

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Is the “energy & intention” of “The Brand” connecting with the consumer so they can FEEL it?

Our reporting exercises are built to provide a deep understanding of “the consumer’s relationship with ‘The Brand’”… To hit the

bulls eye.

Is “The Brand” Connecting With Their Consumers/Shoppers?

Short & Long TermConnection

and Purchase

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BrandTruth – How do we do it?Stealth Immersion

Stealth Engagement Natural elicitation

goes “beneath the surface” to discover the keys to behavior

& attitudes of Consumers AND Store Personnel(1)

Data Collecting Standardization

Exacting data integrity methodology enforced.Information is recorded

immediately.Incongruities tracked/ extremes discarded.

“Observers” are “close to the action” but stay “invisible”.

Stealth Observation

Category Investigation Approach

BrandTruth systematically dissects shopper behavior BEFORE the purchase is made and while external factors still have an opportunity to influence.

Source: ConsumerReports.org survey 2010 ;N= ± 11,000

Do Your Answers Come Too Late?

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Existing data sources report on successes, failures and areas for improvement AFTER the purchase has been made.

ALL Contributing Factors Will Be Discovered

Relationship and effect is sometimes linear and predictable in nature,

…but more times than not, have disparate relationships based on shopper profiles

Merchandising Effectiveness

Associate Influences

Mass Media

Brand Loyalties

Legacy Plans And

Resistance To Change

Role Of Dept Set & Flow

Shopper Pre-Disposition

Brand/Model

Capture & Abandonment

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(1) Per 100 shoppers entering the sales area (See methodology section for qualifying details)(2) As a subset of section#1( See methodology section for scoring metric and processes

1Brand/Model A Brand/Model B Brand/Model C Brand/Model D

Best Buy 24 16 7 4Costco 17 14 12 6Radio Shack 11 11 13 9U.S Cellular 22 10 11 5Walmart 20 14 13 9

2Brand/Model A Brand/Model B Brand/Model C Brand/Model D

Best Buy 17 15 6 3Costco 10 13 11 5Radio Shack 4 10 12 8U.S Cellular 15 9 10 4Walmart 13 13 12 8

3Brand/Model A Brand/Model B Brand/Model C Brand/Model D

Best Buy 71% 94% 86% 75%Costco 59% 93% 92% 83%Radio Shack 36% 91% 92% 89%U.S Cellular 68% 90% 91% 80%Walmart 65% 93% 92% 89%

Shopper Capture Rate (1)

Shopper Abandonment Rate (2)

Shopper Abandonment to Capture Rate

Scorecard - Brand/Model Capture & Abandonment

… paves the way for deeper understanding and on-going improvement of retail practices.

Drill Down Opportunities (quantitative AND qualitative)

• How long does shopper interact before abandon• Does quality/functionality of demo come

into play• Associate role on abandonment

Drill Down Opportunities (quantitative AND qualitative)

• How can we improve score across ALL retailers?• How can we divine best practices from top

scorers?

Drill Down Opportunities (quantitative AND qualitative)

• What merchandising elements assist the capture?• How does the typical store layout and

product set contribute?• Associate role on capture

The Result Is a Top-To-Bottom Approach To Data Gathering and Interpretation

High Level Case Studies

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New Coke Packaging Initiatives

Twin Pack Case StudyWhat Do They Want to Know?

• Why Do They Purchase?• Why Don’t They Purchase?• Are Coke’s initiatives fulfilling their

“strategic intent?”

Key Brand Objectives• Capture New Users• Create “Emotional Activation”

Findings• Key brand objectives were met… BUT• Sales goals fell short – why?• Cannibalization of current product • “Off-Shelf” purchase pattern

importance

Economic Impact of Study

$100 million + Savings

Twin Pack Case Study (cont.)

Metro Store

WeeklyAll

Commodity Volume

(ACV)

Weekly Transactions

(Overall Store*)

Weekly Avg

(Case Sell in)

Relative Transaction

Score**Front

In-line"Other*/

(Non Front)In-line

Floor Rack

End Cap Activity TOTAL

Secondary Placement

Notes

Income - $50-75K

Income - $75-100K

Income - $100-150K

Income - $150-200K

Income - $200K

+

HH

s With C

hildren Age 0 - 5 O

nly

HH

s With C

hildren Age 6 - 17 O

nly

HH

s With C

hildren In Both R

anges

College G

rad

Weighted D

emographic Index

Augusta Kroger #340

275,000$ 9,522 8.0 8.4 33 33 33 100(2) *Floor Rack

located in the deli & Branded end cap on the back aisle across

89 76 59 37 38 98 90 80 75 85

Augusta Kroger #245

425,000$ 14,716 11.3 7.7 33 33 33 100(2) *Floor Rack

located in the deli & Branded end cap on the back aisle across

84 74 64 61 80 117 101 90 98 99

AugustaKroger #237

275,000$ 9,522 7.1 7.5 33 33 33 100(2) *Floor Rack

located in the deli & Branded end cap on the back aisle across

98 70 46 20 24 104 131 111 47 88

AugustaKroger #368

400,000$ 13,850 8.7 6.3 33 33 33 100(2) *Floor Rack

located in the deli & Branded end cap on the back aisle across

103 90 83 93 124 97 71 71 146 102

Savannah Kroger #404

425,000$ 14,716 5.7 3.8 33 33 67*On Branded Back

End Cap 106 100 83 59 41 109 99 84 107 102

Savannah Kroger #645

525,000$ 18,179 6.9 3.8 33 33 67*On Branded Back

End Cap 104 96 92 83 83 134 98 119 97 111

Savannah Kroger #979

450,000$ 15,582 5.9 3.8 33 33 67*On Branded Back

End Cap 84 69 59 49 92 82 91 88 87 88

Savannah Kroger #957

525,000$ 18,179 5.4 3.0 33 33 67*On Non- Branded

Back End Cap 91 76 56 46 64 87 94 87 95 90

Transaction/Sell-in Data In-Store Location Data Demographic Data

• Sorted by Relative Transaction Score; a ratio of Twin Pack Sell In to Store ACV (Revenue)

• Normalized Store Volume to Compare Sales Per Consumer

Augusta Kroger’s had both Floor Racks & End Caps vs. Savannah stores only had End Caps.

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New HP Merchandising Initiatives

BrandTruth Best Practices StudiesWhat Do They Want to Know?

•What are the best strategies to capture consumer/shopper mind share?

•Which visual merchandising efforts work to increase purchase conversion?

Key Brand Objectives•Optimize ROI on Retail Spend•Create New Merchandising Approach

Findings• Too many POS tools• Too many “Stories” confuse shoppers• Good-Better-Best approach needed• “Less is more” increases conversion

Economic Impact of Study$20 million+ Savings $100 million+ Revenue

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Path to PurchaseApproach “The Store” as an Aggregate - Integrated Experience

1

63

5

7

8

9 10

3

5

6

7

8

9

10

62

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ActionableDeliverables

Align with Shopper Behavior & Attitudes

(Speed Zones & Viewing Fields)

The (3) Key Shopping Segments

Phase One - The BeginningPhase Two - The ShopPhase Three - The After Shop

Measure & InterpretPass by?

Visually Browse?Stop?Touch?

Purchase?

Optimize Short & Long Term Conversion (Shopper Intent to Return / to purchase in the

Future)

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NIKE vs. Under Armour

Performance Apparel Case StudyWhat Do They Want to Know?• Why Do They Purchase Under Armour?• Why Don’t They Purchase NIKE?

Key Brand Objectives• Capture Under Armour Users• Recapture Category Leadership

Findings• Under Armour owned Perform-Apparel• NIKE was invisible • Need “concentrated presentation” • Follow UA communication strategies

Economic Impact of Study

$500 million + Revenue

NIKE “PRO” RevolutionConcentrate NIKE Performance Apparel in One Area

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Economic Impact of Study$500 million + Revenue

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Columbia Continuous Improvement Model

BrandTruth Columbia StudiesWhat Do They Want to Know?• Who is purchasing Columbia? • How do they “feel” about “The

Brand”? • How does Columbia compare with

key competitors?

Key Brand Objectives• Optimize ROI on Retail Spend• Create “Emotional Activation”• Create “Visual Leadership”

Findings• Columbia stuck with older

demographics• Competition capturing younger dem’s• New product approach needed• Re-facing of brand required

Economic Impact of Study$300 million+ Revenue

Shopper Segmentation By Brand

0%

5%

10%

15%

20%

25%

30%

35%

40%

7%

13%

6%

16%

18%

21%

16%

26%

32%33%

34%

24%

36%

26%

36%

26%

7% 7%8%

7%

CSC BrandPurchase Driver Age Range by Gender

14-19 20-29 30-39 40-54 55+

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Retail Visual Share Update 2009 vs. 2010

TNF

CSC

Private Label

Under Armour

Carhartt

Burton

Mt Hardwear

White Sierra

Timberland

Marmot

Patagonia

Kuhl

Wolverine

All Others

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

2011 2010

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Summary of Key Findings – Product “A” Shoppers

Early Adopter

Progressive Middle Adopter

&Middle Adopter

Main Stream

Elite Shopper• Sees themselves as early adopters• Often “mavens”• “Active Shopper” that moves slower and stops to

investigate more often and for longer periods of time… they connect the dots…

Progressive Middle Adopter• Often sees themselves as early adopters• Must be “attracted”• Once “attracted” – is often open to new

initiatives • Triggers “middle adopter” usage

Main Stream• Pragmatic Functionality• Often Price Driven

Here we are…

Here’s wherewe were

Whatever Metrics You Want, When You Want It

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Reporting Gets All the Way To The C-Suite

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BrandTruth Studies used as

Investor* Relation

Tool

*SanDisk Investor Day Communication Feb ‘10

Marketplace Intelligence Services

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