Decide and Delight. Frank Tataseo Executive VP, Strategy and Growth, Bags & Wraps, and Away from Home. Updated Tactics to Win in the 3Ds DECIDE

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1 Decide and Delight Frank Tataseo Executive VP, Strategy and Growth, Bags & Wraps, and Away from Home Updated Tactics to Win in the 3Ds DESIRE DECIDE Leverage shopper insights for assortment wins 74 1

2 Retail Environment Customer: Value channel growth is accelerating and we are at a tipping point for radical assortment simplification Value channel growth accelerating Retailers are reducing inventories Private label increasing share Tertiary brands are under pressure But Clorox positioned to win 75 Clorox US Portfolio Favored by Assortment Simplification Share Position - % of Portfolio Other 12% #2 Brands 20% #1 Brands 68% #1 Brands #2 Brands 88% of US Portfolio Source: IRI US FDKT P52 Weeks ending 4/26/

3 Simplification Win - Win Retailer Simpler category to shop Better consumer experience Brands consumers want Higher store traffic Less inventory to stock/order Labor efficiencies Higher % of shelf leveraging growth investment (innovation; advertising) Fewer out-of-stocks Clorox Greater % of assortment on shelf Reduced lost sales from out-of-stocks Higher sales even if shelf space reduced (higher turnover) 77 Background: Walmart Simplification Walmart s 10 words Save Money, Live Better Fast, Friendly, Clean Win, Play, Show Implications Walmart remains consumer & shopper-focused Strong Clorox alignment as a supplier and partner to WMT Walmart has not disclosed placement of brands within Win/Play/Show But, Clorox has insight into the likely impact on its brands Anticipated Impact to Clorox A few minor distribution losses Many material gains Clorox s strong portfolio will win in this environment 78 3

4 Charcoal: Observable Facts Permanent placement in Outdoor Living: Moved front & center Space devoted to charcoal has increased Kingsford has incremental items in distribution Continued strong Kingsford merchandising support Kingsford featured in Walmart s TV advertising Charcoal sales increase total basket ring Walmart's share of Charcoal has increased with more room to grow Last selling season Double-digit growth on top of double-digit growth 79 Competitive Environment Competition: Clorox holding share and private label share growth accelerating Clorox has #1 or strong #2 share in categories in which we compete 80 4

5 Clorox has Leading Shares Clorox $ Share vs. Competition P52Wk Ending 3/29/09 Categories Source: IRI US FDKT P52Wk Ending 3/29/09 81 Big-Share Brands - International Source: Nielsen, IRI, Howarth, or Aztec (depending on country) for 13 weeks ending Aug-Dec 2008 (varies by country) 82 5

6 Focus on Decide: Burt s Bees THE OPPORTUNITY Natural Personal Care (NPC) is growing rapidly Natural is confusing to retailers and consumers Shopping for natural is challenging 83 Focus on Decide: Burt s Bees THE SOLUTION The Burt s Bees team worked with the NPC industry to create a natural standard. Requires at least 95% natural ingredients Contain no non-natural ingredients with suspected human health risks 3rd party audit process 84 6

7 Focus on Decide: Burt s Bees Burt s Bees team leads industry in influencing NPC Retailer Marketing Focused on consumer needs Recommend separate NPC section Education at shelf to explain why natural matters Products that Meet NPC natural standard 85 Focus on Decide: Burt s Bees All 1,721 stores have NPC set Education on why natural Secondary placement within Baby, Men s, Checkout, Travel & Trial, First Aid and Sun Care 86 7

8 Focus on Decide: Burt s Bees 2,486 stores in 3,766 store chain have a NPC section Natural imagery and education on ingredients Secondary placement within Baby, Insect, Check-out, and Cough/Cold 87 Focus on Decide: Clorox Wipes THE OPPORTUNITY Disinfecting Wipes growing Trade-up and category growth opportunity Wipes under spaced and hard to find Only 17% ACV have wipes sections 88 8

9 Focus on Decide: Clorox Wipes THE SOLUTION Create dedicated wipes sections within Home Care Secondary placements for Flu Season 89 Focus on Decide: Clorox Wipes 4 Foot Wipe Section in 70% ACV Customer A Customer B Customer C Customer D Customer E Average Growth +7% 90 9

10 Focus on Decide: Clorox Wipes Secondary placements in Pharmacy during Flu Season 91 Updated Tactics to Win in the 3Ds DESIRE DECIDE DELIGHT Deliver decisive product wins 92 10

11 Decisive Product Wins Strong pipeline of innovation Focus on 60/40 wins on big brands 4 major product improvements in FY10, including Kingsford Charcoal Glad Trash Bags 93 Decisive Product Wins: Kingsford Charcoal 2006 Sure Fire Charcoal Innovation Drove Category Growth of +15.8% Grew Kingsford share +3.1 pts 94 11

12 Decisive Product Wins: Kingsford Charcoal Ultra Briquet Coming Jan, 2010! 95 Decisive Product Wins: Kingsford Charcoal Repeating Key Vectors of 2006 Sure Fire Innovation 1) Upgraded raw materials and optimized formula 2) Improved process and quality 3) New briquette shape for more grilling power New Ultra 96 12

13 Decisive Product Wins: Kingsford Charcoal Consumers greatly prefer the Improvement +20% +12% Parity Improvement in Ease of Ignition Improvement in Time To Cooking Readiness Cooking Time Weight reduction of 7% offsets raw material increases 97 Decisive Product Wins: Glad Trash Improved ForceFlex Kitchen Trash Bags Proprietary technology to make the drawstring stretch to grip the can. Prevents the bag from falling into the can. Improved value - no price increase

14 Decisive Product Wins: Glad Trash Huge Consumer Win 60/40 blind test win vs. current 72% top two box score on Better Than Expected 99 Summary: Right Choices to Win in 3Ds DESIRE DECIDE DELIGHT Drive integrated brand growth ideas Leverage shopper insights for assortment wins Deliver decisive product wins