Baking Contest

Whoa there David Nelson, before you get too excited, the baking contest might not be what you think. It’s a sales contest involving Hershey Baking Chips at Wal*Mart!!!!

Here’s what we on the New England team can get excited about: $125 in prizes

Now we all need sales anyway, right? Incremental orders generated from a no-brainer program are a great way to make up some ground!

So sharpen those selling skills- pre-plan your call, walk the store, bust out an impact statement that would bring a tear (of joy) to Adam’s eye, arm yourself with selling tools, know the features and benefits and what factors are critical to your KDMs, and close the deal with a plan and an order.

Rules….

Judge Smails is monitoring this contest for me. I would not recommend upsetting him.

1. A ticket will be awarded for each store that has:A. Punched in a minimum of 20 cases (D1)/40 cases (SC).B. Displayed these incremental chips on an endcap, cart rail, sidewing, or significant real estate on the Bake Center (preferably by infringing on competitor’s space).C. Punch-ins need to be recorded on the Cycle 11 and 12 trackers and a picture must be taken of each display to qualify. This does not have to be a BDP (although we should share in the major successes). One simple slide with pictures of all displays will do. I will then put these together and send to Adam so he has a compilation of what we did as a team to maximize our sales. He will treasure it forever.

2. We will draw names at the REM in January. The more lottery tickets you have, the better chance you have of winning. $75 for 1st name drawn, $25 for 2nd and 3rd names.

3. Contest will conclude at end of the year.

The format is due to the uneven amount of WM’s amongst our territories and the different mixes of SC vs. D1’s. Although Burns with his 3 WM’s will not have as much of a chance of winning as Joanne, he doesn’t have as much work to do either. With no sell-through information etc coming in, this seemed like the best way to give everyone a chance, reward multiple successes, but also take into consideration that those with 6 or more stores will have more work to do.

Slight Twist….

RSR’s who do not gain display/punch-in orders in at least 50% of their stores will get a ticket for another drawing. The “winner” of this drawing will have to bake a batch of cookies for the following REM. If all RSR’s gain 50% incremental display activity, Adam will have to bake the cookies.

One hurdle that we will need to overcome will be getting the baking chip item numbers activated at store level in D1’s. Don’t be that guy on the right, Store Managers can get this done. Or, an endcap of just Reese/Heath (item numbers already active), counts as well.

Attached are a few of the program slides and an item list complete with UPC to make it easy to hand to managers.

Brand Picture HSY UPC Item Description Retailer Sku Comments CAL Status

BAKING PIECES 3400006152 BKGPCS HEATH BIT 8OZ 12 PLTPTN 9282087 #3 Active

BAKING PIECES 3400006180 BKGPCS HEATH 8OZ 12 PLTPTN 9248454 #3 Active

BAKING PIECES 3400014110 BKGPCS VAN 12OZ DSP 12 9228090 #4 Active

BAKING PIECES 3400014128 BKGPCS MINRSE 10OZ DSP 12 WO/BM 9220880 #4 Active

BAKING PIECES 3400000144 BKGPCS PB 10OZ 12 PLTPTN 9254547 #2 Active

BAKING PIECES 3400014570 BKGPCS BTRSC 11OZ 12 9228097 #4 Active

BAKING PIECES 3400014600 BKGPCS MILK 11.5OZ DSP 12 PLTPTN 9254617 #2 Active

BAKING PIECES 3400014680 BKGPCS SPDRK 12OZ DSP 12 PLTPTN 9282094 #3 Active

BAKING PIECES 3400014830 BKGPCS SSWT 12OZ DSP 12 PLTPTN 9254708 #1 Active

Baking Chip sku/UPC

I ranked the chips based on sales history and gave them a priority number. Based on a 80 case initial order, a rough breakdown would be as followed- Priority #1= 20 cases, #2= 12 cases (2 items), #3=8 cases (3 items), #4= 4 cases (3 items).

Economic Recession

Spending Less

Stretching Holiday Budget

Baking / Making Gifts

--- Holiday Behavior Change ---

Current economic environment has changed consumer behavior during the Holidays

4

• Consumers are looking for cost-effective at-home solutions• Baking and confectionary are 2 of the top performing categories during recession• Almost half of all baking occasion take place in November & December

Sources: Nielsen, Hershey Baking Ethnography 08 & Hershey Baking A & U; GM Holiday Research Study Market Tools Dec. 2008

BakingChips

82%

ConfSugar

71%

Bakingcocoa

52%

BakingChocolate

44%

Coconut

35%

HSYKisses

32%

M&Ms

30%

ChocSyrup

28%

Sugarsubstitute

21%

Baking chips are the most commonly used ingredient for dessert baking

Baking Chip Opportunity

Selling Strategy:

• Bake Center mod fills will ship to stores wk 39 – no promo SSO’s currently planned

• Secondary executions on the Cartrail and Grocery end caps needed to take advantage of $1.88/$1.78 OPP!

34 35 36 37 38 39 40 419/18-9/24 9/25-10/01 10/02-10/08 10/09-10/15 10/16-10/22 10/23-10/29 10/30-11/05 11/06-11/12

MOD SET

Walmart Week

42 43 44 45 46 47 4811/13-11/19 11/20-11/26 11/27-12/03 12/04-12/10 12/11-12/17 12/18-12/24 12/25-12/31

Bake Center Set