Localized Differentiated Relevant. portable corded. portable cordless

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1 Localized Differentiated Relevant POWER TOOLS portable corded portable cordless

2 25 Localized, Differentiated and Relevant Planograms PLANOGRAM STRATEGY The program is designed to make your store relevant and current in the category while complementing your adjacent power tool accessory planogram to round out margin and frequency. The format and assortment mix of each planogram is designed to make the purchase easy for customers. Outside of the 8-ft. combined option, all planograms are designed to be mixed and matched to fit your market. When selecting a planogram, ask yourself, How much space can be added to the program? What type of customers shop in my store? Is there a certain brand preference in my market? power tools blended additional 8' 12' expanded Master Mechanic Dewalt Makita Milwaukee Porter Cable bare tool bare tool farm & ranch farm & ranch

3 Free Reset 180 Days Dating Free Racks Free Point-of-Purchase Signage PROGRAM FACTS: What Reviewed: corded and cordless power tools. Recent trends in the power tool category include heavy growth in cordless as well as bare tools. Cordless growth is due to updated Lithium-Ion battery technology and brushless motors that both increase run time and power. Bare tools are a natural up-sell. Consumers can expand their tool capability at attractive price points after purchasing an existing kit that already has batteries and a charger. Master Mechanic has not only undergone a rebranding effort, but the whole value proposition has changed. Quality has been improved to mirror mid-price point or better, but at an opening-price point level. Private-label margins remain the most attractive option in the category. The customer experience will be improved through the new planograms by focusing brand options to the core brands that drive 75%+ market share and offering clear price-point progression with little to no redundancy in assortment. How Let us help you determine the right product mix for your store. Please review the checklist on the back of this brochure and come to Reunion prepared to review these questions. You can also work with your Retail Consultant to help identify what s right for your store and they can place orders on your behalf right there in your store! With these assortments you only need to order the items missing from the planogram. Markdown Credits or Lift Credits will be issued within 30 days of the product shipment. Resets only available for retailers within the 48 contiguous states. To qualify for a FREE RESET, you MUST ORDER a combined total of 20-feet of any of the CTB categories currently offered. This excludes Builder's Hardware, Construction Fasteners and Construction Hardware. Why Technology is rapidly changing the cordless power tool market. In addition, Milwaukee and DeWalt are battling for market share (together they control 75% of the market) and as a result, promotional price points on brushed tools have come down. The new power tool assortment addresses both the changes in technology and promotional shifts along with presenting an updated Master Mechanic offering. When Available during Reunion & ordering window Who Hand & Power Tools DepartmentContact: Member Support member.support@truevalue.com Phone:

4 8-ft. blended assortment

5 FEATURES AND BENEFITS POWER TOOLS INDUSTRY TRENDS Corded tool sales are shifting to cordless as a result of improvements in battery and brushless motor capability. Lithium-Ion battery technology and pricing is quickly making NiCad obsolete. Large combo kit sales are shifting to drill/impact kits. Impact drivers are growing in popularity as people discover the versatility of the tool. CONSUMER TRENDS Branded power tools are heavily price-shopped by consumers. It is important to be competitively priced to remain relevant in the market. Private label tools and cross-selling power tool accessories can differentiate you and help drive margin in this category. Participating in promotional efforts is key to driving traffic to both the power tool and power tool accessory categories. PACKAGING/POP/FIXTURING/MERCHANDISING Corded tools are merchandised on the top and cordless at eye level to facilitate customer touch and feel. Batteries to support each brand have been incorporated into the planogram as well. The fixtures and POP are completely exclusive to True Value and are designed to be durable, differentiate and look dominant in your store.

6 Milwaukee farm & ranch Milwaukee bare

7 FEATURES AND BENEFITS MILWAUKEE Three planogram options can be purchased together to offer 12-ft. of Milwaukee tools Cordless items all go to Lithium-Ion Entry-level brushless technology is introduced and will be promoted The cordless bare tool planogram is available to cross-sell and drive margin The Farm & Ranch planogram is available for customers that are Heavy DIY-ers, professional, or farm/ranch owners More advertised items are incorporated into the planogram to keep you competitive Milwaukee AVAILABLE MILWAUKEE POWER TOOL ASSORTMENTS bare tool farm rural & ranch

8 DeWalt farm & ranch DeWalt bare

9 FEATURES AND BENEFITS DEWALT Three planogram options that can be purchased together to offer 12-ft. of DeWalt tools Cordless items are all powered by Lithium-Ion battery The cordless bare tool planogram is available to cross-sell and drive margin The Farm & Ranch planogram is available for customers that are heavy DIY-ers, professional, or farm/ranch owners More advertised items are incorporated into the planogram to keep you competitive DeWalt AVAILABLE DEWALT POWER TOOL ASSORTMENTS bare tool farm rural & ranch

10 MASTER MECHANIC FEATURES AND BENEFITS Rebranded at a higher quality level through a new supplier at improved margin Cordless items are all powered by Lithium-Ion battery Three cordless drill price-point options with increasing features and power across the price continuum New items Cordless Drill/Impact combo and corded Mud Mixer Master Mechanic AVAILABLE MASTER MECHANIC POWER TOOL ASSORTMENTS

11 FEATURES AND BENEFITS MAKITA / PORTER CABLE New planogram with current core Makita assortment contains the items to sell the Makita brand Contains the items to sell the Porter Cable Brand Makita AVAILABLE MAKITA & PORTER CABLE POWER TOOL ASSORTMENTS Porter Cable tools assortment

12 Localized Differentiated Relevant POWER TOOLS checklist Come to Reunion with these questions in mind: o What is the total linear footage of your current Power Tools set? o Are there any breaks or obstructions in your run (ex. aisle, poles, columns, etc.)? o What is your current vertical fixture height in inches? o Do you have overhead storage above your power tools sets? o When was the last time you reset your power s? o 1 2 Years o 3 4 Years o 5 Years or more o Approximately what percentage of your current assortment is purchased from True Value? TVMD True Value Company. All rights reserved.