Communicating

Business Insights and

Recommendations

Case 1, Frozen Pizza

 How to Efficiently Find Insights?

When being assigned a project – Ask Top of the

Funnel Questions
o Is this particular category growing overall?
o Are sales in units, dollars and volume up or down versus
last year?
o How much market share do we have? Is it growing or
declining?
o What channels are we focused on?
o Grocery Stores data
o However consider other channels of distribution
o What brands or types of products grew the most?
o How did we perform versus competition? 2
 How to Efficiently Find Insights?

More specifically using Panel Data (or some type of

customer data)
o Who is buying our products?
o Customer profile
o Note: There is a difference between customer and
consumer
o Who is buying primary competitors products?
o Do these insights help explain growth or decline?
o What questions are raised? Should we be
recommending primary research to answer these
questions?
3
 How to Efficiently Find Insights?

Evaluate Specific Channel Partners

o Which chain or store is our star sales partner?
o What types of price (average per equalized volume of
pizza) is being used in this retailer when there is no
Temporary Price Reductions?
o What other promotional support are we (manufacturer)
getting from this retailer?
o What other competitor products are being sold
o Compare to bottom tier retailer if needed to clarify
differences.
o Opportunities to increase sales based on analysis:
o Product, Price and/or Promotion
4
 Building a Presentation
o Before beginning a power point, write down
what you have learned.
o Core insights you feel you need to share
o What data supports these insights
o What is your recommendation and can you support
this recommendation
o Consider order of insights

5
Headline of each slide is the business impact NOT THE TOPIC:

“Out of stocks caused $900,000 missed potential sales”

6
 Consumer Profile - Examples
 Continue to create a variety Land-O-Lake Income Levels Compared to Private Label
of products that are 'N/A' 0.68%
specialized '$100,000 and greater per year' 7.28%

 Specialized products may '$75,000 to $99,999 per yr'

7.16%

help Land-O-Lakes improve in '$65,000 to $74,999 per yr' 2.76%

'$55,000 to $64,999 per yr' 3.91%

their “$45,000 to $54,999” -8.72%
'$45,000 to $54,999 per yr'
income level group '$35,000 to $44,999 per yr' 3.28%
-2.53%
 “$45,000 to $54,999” income '$25,000 to $34,999 per yr'

level group makes up over '$20,000 to $24,999 per yr'

-2.96%
-8.71%
'$15,000 to $19,999 per yr'
13% ($1.5 million in Land-O- '$12,000 to $14,999 per yr' 3.01%
Lake sales) of all '$10,000 to $11,999 per yr' -1.40%
butter/margarine sales '$00,000 to $ 9,999 per yr' -3.75%

 A 2% increase in sales -10.00% -5.00% 0.00% 5.00% 10.00%

towards this income level

could result in over $230,000
in revenue Information drawn from 2007-2011 Panel Data
 Total Butter Market Trends
Differences in Butter Market (07-11)

• From 2007 to 2008 and from

2009 to 2010, Land-o-Lakes
2010-11 units were positive unlike
overall butter market

• Butter market overall is still

2009-10
increasing and looking
promising for Land-o-Lakes

2008-2009

2007-2008

-15000000 -10000000 -5000000 0 5000000 10000000 15000000 20000000

*Data found by 07Total_LOL, 08Total_LOL, 09Total_LOL, 10Total_LOL, and 11Total_LOL

Land-o-Lakes Dollars Market Dollars Land-o-Lakes Units Market Units

 Rules of Writing Business Insights

1. Quantify your business insight with

data.
Example: Compleats are driving category growth.”
• This does not provide complete picture for
customer.

Better: Compleats have grown 2% while other

brands have declined by up to 6%.
• Use data facts and measurements within
your insights
 Rules of Writing Business Insights

2. Dimensionalize the data

• Create insights that include position and

direction
• How big is the brand in terms of share
• Growing / Declining
• Ways to dimensionalize data:
• Times (ex. 2 times)
• % difference
• Points
• For example, “Compleats is up +3%, growing 5
points faster than the category.”
 Writing Business Insights (cont.)

3. Use the language and terminology of your audience

Examples: Temporary Price Reductions = TPR’s
Features
End of Aisle Displays,
Display Ready Containers (DRC’s)

4. Use words that guide the reader to your key points

Be sure your visual and written communication match. For instance if
you are showing opportunity gap, make sure you guide them to show the
largest opportunity gap.
 Writing Business Insights (cont.)
5. Business insights should relate to data listed in that
section
 Writing Business Insights (cont.)
6. Be clear and concise; less is more
Typical Example: Hormel is showing double-digit
growth and is up 12% since the last refresh even
being short 1 promotion.

Better Example (using position and direction):

Hormel is up +12%, growing 15 points faster than
the category.

Try to eliminate filler words, the audience

understands that 12 is a double digit.
 Effective Written Communication

• Communicate the Solution

• Wordsmith the best business
insight
• Refine the most powerful visual
image
• Complete the slide to make an
impact
 Simplified Format
Title
Simple Statement of Business Insights

Data Sources
Logo Page #

Font: Arial, Calibri, Times New Roman or Garamond

Title: 32-pt font, centered
Insight: 16 to 24-pt font, left justified, no bullets, full sentences, three lines maximum,
Placement above graph
Page and Source: 10 to 12-pt font
Graph: Simplified, uncluttered, 2 graphs maximum
Lines: Use of lines will help center the eye.
Before and After Examples
Opportunity Gap

Category Review

Promotional Analysis

16
 Opportunity Gap Analysis (Before)
SAFEWAY OPPORTUNITY GAP ($), 52 WEEKS THRU 4 WEEKS ENDING 10/16/10
ENCHILADA % Total
DIVISION SALSA TACO SAUCE SAUCE GREEN CHILES JALAPENOS TOTAL $ Gap
VONS -$326,585 -$199,316 -$1,492,496 -$75,690 -$2,091,795 -$4,185,883 35.9%
NORCAL -$159,988 -$706,846 -$275,857 -$1,633,231 -$2,775,921 23.8%
PHOENIX -$272,646 -$11,249 -$444,965 -$114,002 -$1,029,165 -$1,872,027 16.0%
TEXAS -$6,275 -$76,448 -$954,000 -$1,036,723 8.9%
DENVER -$169,866 -$96,646 -$159,521 -$228,515 -$654,548 5.6%
DOMINICK'S -$133,891 -$8,793 -$344,475 -$487,159 4.2%
SEATTLE -$53,470 -$125,780 -$171,957 -$97,849 -$449,057 3.8%
PORTLAND -$66,459 -$91,593 -$158,052 1.4%
EAST -$29,898 -$29,898 0.3%
GENUARDI'S -$11,570 -$5,893 -$17,463 0.1%
CORPORATE -$769,097 -$575,758 -$2,951,974 -$893,384 -$6,476,517 -$11,666,730 100%
% Total $ Gap 6.6% 4.9% 25.3% 7.7% 55.5% 100% 100%

• About 70% or $530M of the total Salsa opportunity gap exists in the Salsa
Verde segment.
• About 85% or $490M of the Taco Sauce gap exists in three divisions: Vons,
NorCal and Dominick’s.
• Enchilada Sauce represents a $3MM opportunity, which is the largest gap
among mainstream Mexican sauces.
 Opportunity Gap (After)
Over 80% of Brookshire’s Tortilla opportunity gap can be closed with the top 5
brands – Private Label, Guerrero, Mission and La Banderita.

Opportunity Gap ($K) Market Share Chg vs YA ($K)

Source: Nielsen, Custom Dictionary, Brookshire’s Corporate, 52 Weeks Ending 03/16/13,

19.9% ACV Market Share - Food
 Category Review (Before)
Private Label Enchilada Sauce is up +$49K; however, the category is down -11.6% due to the
a) discontinuation of Old El Paso/Ortega, b) volume shifts from La Victoria/Las Palmas, and
c) volume shifts to Private Label, which is priced -28% lower than the category.

Category Impact Grew Faster than ROM Grew Slower than ROM
RALEYS-BEL AIR-NOB HILL CTA, ENCHILADA SAUCE, 26 WEEK ENDING 08/04/12
$ Share Dollars Price Eq Volume

Ba s e $ Incrm $ ROM Avg Avg Eq ROM

$ Shr Pt $ Actua l Actua l Actua l $% $% Eq Vol Vol Pri ce $ Actua l Vol % Vol %
Product $ Sha re Chg vs YA Dol l a rs Chg vs YA Chg vs YA Chg vs YA Chg vs YA Chg vs YA Pri ce Chg vs YA Eq Vol ume Chg vs YA Chg vs YA Chg vs YA
CATEGORY TOTAL 15.0 (1.5) $473,315 (62,121) ($70,587) $8,466 (11.6) (1.0) $1.75 ($0.11) 270,511 (17,070) (5.9) (1.1)
LAS PALMAS 13.2 (1.0) $284,589 -$14,031 -$17,861 $3,830 (4.7) 3.7 $1.78 $0.06 159,501 -13,600 (7.9) 5.0
LA VICTORIA 15.6 (2.6) $51,221 -$28,444 -$27,068 -$1,376 (35.7) (22.4) $1.67 ($0.06) 30,636 -15,430 (33.5) (12.6)
PRIVATE LABEL 23.3 23.3 $49,434 $49,422 $49,023 $399 >300 (14.9) $1.26 $0.73 39,129 39,107 >300 (17.3)
ROSARITA 30.2 8.6 $39,140 $1,734 $200 $1,535 4.6 (33.4) $1.61 ($0.08) 24,312 2,199 9.9 (45.4)
AMALIA'S COCINA 38.3 (4.5) $20,170 $4,300 $4,452 -$151 27.1 53.0 $4.86 ($0.02) 4,149 899 27.7 48.2
FRONTERA 28.5 (16.2) $17,770 $4,805 $2,946 $1,858 37.1 177.4 $4.74 $0.43 3,750 738 24.5 159.1
EL PATO 23.6 (2.4) $7,821 -$855 -$1,540 $686 (9.8) 2.3 $0.98 ($0.31) 7,965 1,248 18.6 7.3
JUANITA'S 18.5 2.4 $3,055 -$146 -$208 $62 (4.6) (19.2) $3.24 $0.07 942 -68 (6.7) (17.8)
OLD EL PASO 0.1 (42.4) $98 -$55,734 -$56,145 $412 (99.8) 21.9 $0.87 ($1.38) 112 -24,662 (99.5) 39.2
ORTEGA 0.1 (60.4) $16 -$23,165 -$24,377 $1,212 (99.9) 12.0 $1.04 ($2.05) 15 -7,493 (99.8) 11.8

Nielsen Account Planner 26 WE 8/4/12 19

 Category Review (After)
Both dollar & unit sales are down about -7% or -8 points slower than ROM.
Although Private Label represents 85% of the dollar growth, but has not yet
outpaced national brand sales losses.

Actual Change ($K) 12 Weeks Dollars ($K)

Category Dollars $ Actual Chg $ % Chg ROM - $ % Chg Units U Actual Chg U % Chg ROM - U % Chg
12 Weeks $214,720 ($16,838) (7.3) 1.0 77,687 (5,738) (6.9) 1.0
26 Weeks 443,092 (40,490) (8.4) (0.8) 164,082 (10,672) (6.1) (0.8)
52 Weeks $974,212 ($87,790) (8.3) (0.6) 361,646 (21,898) (5.7) (0.6)

Source: Nielsen, Custom Dictionaries, Raley’s Corporate

 Promotional Analysis (Before)
Raley's-Bel Air-Nob Hill CTA, SS Salsa
$ % Chg vs YA
CATEGORY MEGAMEX A/O VENDOR
RALEY'S BANNER, SHELF STABLE SALSA
WEEK ENDING WEEK ENDING WEEK ENDING WEEK ENDING Chg vs YA
01/21/12 01/28/12 02/04/12 02/11/12
CWW - CWW - Avg
20 15.0
15 12.1 Disp Feat & Eq Vol
7.3 8.2 7.5
10
4.5 Time Period Only Disp Price
3.4
5
WEEK ENDING 01/21/12 0.1 -0.6
$ % Chg vs YA

0
(5) WEEK ENDING 01/28/12 $0.08
(10) (6.5) WEEK ENDING 02/04/12 0.1 -0.7 $0.21
(15) (11.2)
(14.5) WEEK ENDING 02/11/12 -0.1 -0.1 ($0.01)
(20)
(25) (21.2)
(30) (26.7)
SHELF STABLE SALSA, 2 WEEKS ENDING 02/04/12
Dollars
RALEYS-BEL AIR-NOB HILL CTA vs ROM COMP Share Raleys, 2/2/2011,
ROM

Product Dol l a rs
$%
Chg vs YA
$%
Chg vs YA
$ Sha re
i n COMP
$ Shr Pt
Chg vs YA
2011 →
CATEGORY $171,633 (1.4) (4.8) 17.2 0.5
PACE $48,718 (18.5) (20.6) 17.0 0.4
LA VICTORIA $26,454 14.9 8.0 22.5 1.0 Raleys, 1/26/2011 Raleys, 2/2/2011 Raleys, 2/2/2011
TOSTITOS $24,631 21.9 15.5 14.0 0.6
HERDEZ $16,152 (3.4) 18.8 20.1 (3.5)
PRIVATE LABEL $9,452 4.9 0.6 4.9 0.2 Vs. Raleys, 1/25/2012
ARRIBA! $8,630 (4.6) (18.2) 39.2 3.6
SANTA CLARA $7,643 - - 90.1 0.0
MRS. RENFRO'S $6,623 (19.3) 18.5 29.7 (8.6)
NEWMAN'S OWN $5,666 47.1 (20.8) 31.1 11.6
FRONTERA $3,815 (21.2) (5.0) 44.5 (4.6)
ALL OTHER $13,847 (28.6) (23.0) 21.6 (1.3)
2012 →
Raleys, 2/1/2012 Raleys, 2/1/2012 Raleys, 1/25/2012, Raleys, 1/25/2012,
 Promotional Analysis (After)

Base Dollars Incrm Dollars Avg Price F Feature

$ (K) $7 $4.50 Price
F F F
$4.00
$6
$3.50
$5
$3.00

$4 $2.50

$3 $2.00

$1.50
$2
$1.00
$1
$0.50

$0 $0.00
Nov'11 Dec'11 Jan'12 Feb'12 Mar'12 Apr'12 May'12 Jun'12 Jun'12 Jul'12 Aug'12 Sep'12 Oct'12

Source: Nielsen, Custom Database, Raley’s Banner