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Thank you!

Thank you!. General Session: Bill Bishop of Willard Bishop Consulting Drew Schwartzhoff, Director of Marketing at C.H . Robinson Tony Stallone, Vice President of Merchandising and Food Safety for Online Grocer Peapod at Peapod LLC.

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  1. Thank you!

  2. General Session: Bill Bishop of Willard Bishop Consulting Drew Schwartzhoff, Director of Marketing at C.H. Robinson Tony Stallone, Vice President of Merchandising and Food Safety for Online Grocer Peapod at Peapod LLC

  3. How Food Retailers are Engaging Shoppers with Digital Presented byBill Bishop August 20, 2013

  4. What We Believe Customers are rebalancing their shopping to do more online but not abandon the store and this is creating a need for retailers to offer more digital connections.

  5. About the Surveys 45,000 Shoppers 10 Retail Banners

  6. Top On Shopper Wish List “Time your digital circular to let me get the value.” “Save me some planning time.” Make it quicker to find items in the store.

  7. Three Key Questions Why you need strong digital relationships? Where else do your customers search? How can you help customers plan their shopping?

  8. WHY YOU NEED STRONG DIGITAL RELATIONSHIPS

  9. WHY YOU NEED STRONG DIGITAL RELATIONSHIPS NEXT STEPS Get your customers’ reactions Identify and fix vulnerabilities Take advantage of competitors’ vulnerabilities

  10. Are Shoppers Engaging?

  11. What you can do: • Find out what your shoppers want, but isn’t available on your site. • Ensure the site is mobile friendly. • Look for partnerships.

  12. WHERE ELSE DO YOUR CUSTOMERS SEARCH

  13. WHERE ELSE DO YOUR CUSTOMERS SEARCH NEXT STEPS Find out more about why Decide if you want to provide it Look for partnerships

  14. Are Shoppers Engaging?

  15. What you can do: • Make sure your emails are mobile friendly. • Find ways to increase open rates. • Be sure that the timing of your emails is right for your customers.

  16. Are Shoppers Engaging?

  17. What you can do: • Use it for feedback if you’re ready to act on the feedback. • Alert shoppers to events and promotions. • Make it an integral part of your customer service.

  18. HOW CAN YOU HELP CUSTOMERS PLAN THEIR SHOPPING

  19. HOW CAN YOU HELP CUSTOMERS PLAN THEIR SHOPPING NEXT STEPS Start to think like an online retailer Make it easier to build lists Highlight promotions on what they buy

  20. Are Shoppers Engaging?

  21. Online Retailers Where Produce is the Lead

  22. What you can do: • Put more emphasis on requests for items. • Determine if there are services available to offer your customers online ordering. • Evaluate offering your own online ordering service for stop pickup.

  23. Keep Up with What’s Happening You can turn to Brick Meets Click to always get clear, commercial-free guidance on how digital is impacting the shopping experience and what you can do to build your business. Bill Bishop Chief Architect Brick Meets Click Bill.bishop@brickmeetsclick.com www.brickmeetsclick.com

  24. How Consumer Opinion Leaders Thinkabout Online Produce Purchasing Drew Schwartzhoff Director of Marketing August 19, 2013

  25. C.H. Robinson in Retail & Produce • Global 3PL leader • 10+ million shipments handled annually • 45%+ of these shipments are in the retail/food & beverage vertical • 100+ years of fresh produce experience • Leading Producer, Marketer and Distributor • 500+ Million cases sold over the last 5 years • Wide range of products and brands • Fortune 300 company • Publicly owned and traded on NASDAQ (Symbol: CHRW)

  26. Yesterday’s Supply Chain is linear

  27. Today’s Supply Chain is More Complex

  28. Online Produce Headlines Vary

  29. CHR Consumer Opinion Leaders Panel • Background • Objective • Methodology • Panel Composition • Today’s Results

  30. About half of all consumer opinion leaders have purchased groceries online Respondents Purchasing Category Online 90.2%Books/CD/DVDs 92.2% Clothing 52.9% Groceries 45.1%Pet Supplies 47.1%Flowers

  31. No more than a quarter have tried any one type of online grocery service Tried Online Grocery Service Type Delivered to home Pickup at local store Pick-up at separate facility Same Day: 11.8% Next Day: 24.5% Same Day: 8.1% Next Day: 9.8% Same Day: 2.0% Next Day: 2.0%

  32. Most opinion leaders who try online do not stick with it Still Using Online Grocery Service Type Delivered to home Pickup at local store Pick-up at separate facility Same Day: 4.9% Next Day: 3.9% Same Day: 3.9% Next Day: 2.9% Same Day: 1.0% Next Day: 0.0%

  33. Nevertheless, many consumer opinion leaders remain intrigued with the idea Finds Online Grocery Service Type Very Appealing/Appealing Delivered to home Pickup at local store Pick-up at separate facility Same Day: 69.6% Next Day: 52.9% Same Day: 53.0% Next Day: 43.1% Same Day: 61.4% Next Day: 52.9%

  34. Opinion leaders think retailers can do the best job running EVERY service type What Online Grocery Service Type They Expect Will Do Best Job

  35. About a quarter of opinion leaders have purchased produce online • Quality & Freshness is executed well online • Price value is still a disadvantage for online produce • Items most often ordered: • Apples • Oranges • Full-sized Tomatoes • Bell Peppers

  36. For produce shopping, in-store advantaged in some but not all areas ShoppingOnline better Shoppingin-store better • Freshness • Quality • Deals, discounts and promotions • Finding what I need • Wide variety • Overall convenience • Speed • Hard to find items • Brands I prefer • Everyday prices • Customer service Shopping/onlineabout the same

  37. Opinion leaders attitudes paint a complicated picture On one hand… …but on the other hand… Most like going to the store: 69.8% agree “I personally don’t mind going to the store to do my grocery shopping…it’s something I actually enjoy doing.” Most are open to letting others select produce for them: 53.2% indicated they are potentially open to having someone else “selecting my produce items in the store.” Most are nervous about buying produce online: 71.6% agree “Of all the different groceries I purchase, fresh produce is among those that I am most nervous about purchasing through an online grocery service” Most believe an online service is capable of doing a good job on freshness and quality: 53.9% agree with the statement “If you go with the right online grocery service, you can feel confident they will bring you produce that is fresh and high quality.”

  38. How to make consumers feel more positive Emphasize New Benefits Access to: a wider variety; specialty items more complete line of organics more local produce 82.4% 68.6% 75.5%

  39. How to make consumers feel more positive Offer Innovations Product is delivered in temperature-controlled packaging and kept separate from other groceries Offering a strong quality and freshness guarantee Carries a “daily freshness rating” so you know quality before ordering Comes with a 100% customer satisfaction guarantee 89.2% 89.2% 88.2% 89.2%

  40. Change is Happening Fast! • Your Supply Chain and your customers supply chain is changing - - and faster than ever before • Your consumers buying behaviors are changing in how they purchase goods • Are you doing enough to stay ahead of this change?

  41. Produce Competing in a Digital World Tony Stallone VP, Merchandising and Food Safety, Peapod

  42. Digital Produce World Agenda • How it all started • Reasons to be excited about online grocery/produce sales • Who is Peapod and the other online players? • Online produce facts you should know • How to grow produce sales in the digital world • Obstacles to growing produce sales Proprietary & Confidential

  43. How It All Started • The brothers: Proprietary & Confidential

  44. How It All Started Mom knows best? or Proprietary & Confidential

  45. How It All Started Mom knows best? Proprietary & Confidential

  46. Reasons to be Excited about Online Grocery & Produce Sales

  47. Online Is Big Business Today Proprietary & Confidential

  48. Grocery is different than other Internet retail You buy a lot of unrelated stuff . . . Proprietary & Confidential

  49. Online Grocery Projected Growth • 2% Percentage of total U.S. consumer packaged food sales purchased from online grocers in 2012  • $6 billion Revenue generated by online grocery sales in 2012 • $9.4 billion Predicted revenue in 2017, on an estimated 9.5 percent growth • 1,620 Number of online grocery businesses in 2012 • 8.8% Market share of largest online grocer Peapod, followed by Fresh Direct with 5.7 percent Source: IBISWorld Proprietary & Confidential

  50. Who is Peapod and the Other Online Players?

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