Instant Combo Savings is a national volume building program that partners CPG brands with retailers' private label brands through guaranteed displays and promotions. The program aims to drive incremental volume through high-value combo savings offers that are promoted through weekly circulars, full-page FSIs, social media, and in-store displays and signage. Performance is guaranteed through auditing of display compliance and volume lift goals. The turnkey program handles development, approval, production, and fulfillment of all elements.
1. Introducing
A national volume building program driven by guaranteed displays
Instant Combo Savings®
2011
Member of
Nancy J. Lucas
Instant Combo Savings
T (609) 714-9206 or T (415) 788-3838 ext. 111
C (609) 731-3449
www.InstantComboSavings.com
2. Introducing … Instant Combo Savings®
• Guaranteed displays pre-authorized by retailer (75%+ audited compliance)
• Customary TPRs not required
• Program announced to consumers via:
– Retailer weekly circular, retailer website, POS at shelf and on displays
– Full page FSI, ICS Facebook page, ICS blog
Performance Guarantee or your money back!
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A national volume building program driven by guaranteed displays
ICS drives incremental volume through merchandising support activated by a
partnership between CPG brands and retailers’ complementary, non-competing
Private Label brands
4. 4
ICS delivers significant savings
• Your brand partnered with a complementary, non-competing
Private Label brand
• FREE offer*
• Shoppers redeem each offer individually
• Savings delivered instantly at checkout
*
Assumes 25 – 35% savings for each offer
5. 5
Weekly circular
ICS drives feature
support & consumer
attention
• Delivers high value savings
to the consumer
• 9-12 offers from multiple
National brands
• Category exclusivity
• A Bonus savings program
attracts additional attention
by creating a higher savings
potential
• Shoppers receive Bonus
Savings when 3 or more
offers are redeemed.
Savings are doubled with
the bonus
6. ICS supports the
program with a full
page FSI
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• Runs in each retailer’s key
markets
• Drops on the Sunday closest to
the start of the retailer’s ad week
7. ICS guarantees high levels of display compliance
• Executed through partnership displays
• Supported by the ICS Merchandising Network
– Pre-call
– Display building & signage placement
– Replenishment
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Multi-shelf endcap Floor display Refrigerated display Frozen display
8. ICS guarantees POS placement
• All stores receive signage for both Your Brand and Private Label
• Signage will be placed on display and at the shelf location for each brand
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Shelf/soda department Shelf/chip department
9. Category Exclusivity/Timing
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• CPG brands receive category exclusivity for both National
Brand and Private Label competitors
• The program runs across the retailer network once during a 4
week cycle. Each retailer’s program is 1 week in duration, tied
to the retailer’s ad week
10. Option: Corporate Event
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ICS Corporate Events will drive 100% feature support and display
compliance of 75%+ for each participating SKU…more than twice the level
of typical FSI Corporate Campaigns*
• An ICS Corporate Event is dedicated to
your company
- Choose your theme
- Customize your bonus/overlay
- Minimum 6 offers
• Pricing upon request
* Source: March – May 2010, Safeway
11. ICS is a turnkey program
• ICS Retailer Network is pre-authorized for displays and features ads
• ICS:
– Develops and secures approval of combo offers
– Produces all program elements
– Places FSI
– Coordinates program details with your National Account Managers
Projects volume lift
Informs Category Managers/helps close incremental sale
• ICS Merchandising Network sets displays and POS
• ICS prepares a post promotion evaluation (including performance
guarantee results)
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16. Program Investment
Cycles 1-6, 2011
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Media/Distribution
FSI (30.4 mm)
POS
Circular (96.8mm)
Store Participation and
Post Promotion Evaluation $ 49
Merchandising/Production
Merchandising services
Print Production
Shipping $16
Total Cost Per Store $65
Note: 1. Grocery, Beverage or HBC products may incur an additional cost for corrugate display units or pallets, depending on the retailer
2. FSI runs Sunday prior to retailer’s ad week for their first 2 programs. Coverage is all markets where the retailer has 10% or more ACV share plus a minimum of 10 stores
Estimating Range – 5% to 9% for combo offers
requiring multiple purchases of your product;
15% to 19% when only one package of your
product is purchased
Partnership Offer – CPG will be billed for face value
of partnership offer plus 5¢ handling
Bonus Offer – All participating CPG brands share in
the funding of the bonus offer – face value plus 5¢
handling
Clearing – Retailer submits electronic redemption
report directly to CPG or to CPG’s redemption agent
Participation
Performance Guarantee
If the program does not reach the agreed upon targets, ICS will rebate a portion of Media & Distribution costs
Redemption
17. Performance Guarantee
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Example: If volume lift is less than 300%, you will receive a rebate on media/distribution
costs as follows:
Volume lift % Rebate %
201 – 300 25
100 – 200 50
0 – 99 75
• Based on volume, merchandising or profitability goals established prior to program
implementation
• Goals can be volume lift, year over year volume growth, display compliance, promotion
cost/unit moved, etc.
• Performance rebate determined by syndicated data, retailer data or store audits
19. ICS Recap
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Announced with feature ad
& FSI
Broad consumer reach builds program awareness. Multiple FREE
offers engages Shoppers
Pre-Authorized Displays 75%+ compliance/significantly higher than most programs
Category Exclusivity Blocks both National Brand and Private Label competitors
Partner with Private Label Retailers have vested interest in program’s success
Strong ROI Promoting at everyday price protects brand equity. Strong
promotion lift drives both 1 week incremental volume & permanent
gains in base volume
Turnkey Requires less of your time
ICS Merchandising
Network
Set-up for each retailer based on their in-store merchandising
practices
Performance Guarantee If we don’t reach the goals established for your brand, we will
rebate you a portion of the media/distribution cost.
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• Discuss details related to your participation
• Identify participating brands/packages
• Confirm category availability
• Identify related item categories
• Review ICS Master Services Agreement
Next Steps
21. Case Study: Ahold, October, 2010 - Results
Program Dates:
Giant Carlisle/Martin’s 10/17 - 10/23
Giant Landover/Stop & Shop 10/22 - 10/28
Display Compliance: 75.3% average for 8 combo offers
Pricing: 5 out of 8 CPG Brands elected to run at everyday price
Volume lift: Ranging from less than 100% to 370% and higher. Key variables
determining lift were presence of a TPR during the promotion week or the week before,
out of stock conditions, strength of the combo offer, size of the Brand and competitive activity
Redemption as a % of Units Moved:
6.7% for combo offers requiring multiple purchases of CPG product
17.0% for combo offer requiring only 1 purchase of CPG product
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