Kroger Hair care category Recommendations

1. Kroger Hair care category Recommendations The “P&G” Team Andrea Bingen Jacqueline Bishop AshwinGanesh J.S. Karthikeyan Brian Knauer Elena Parthenakis Wendy Teufel

2. Hair Care Category Definition • The following analysis and recommendations are based on a category definition of: • Shampoos • Conditioners • … • Key competition to Kroger in the hair care industry includes: • Target • Walmart • Ulta • …

3. Category Trends Trends Noted Across Key Competitors: • Shopping guidance at shelf • In-aisle education • Organization by Shopper Needs vs. brands?? • Fewer overall brands/skus??

4. Breakthrough Observations • …We’d talk about anything truly unique or ‘breakthrough’ that we’ve noticed at our store visits – include some things Kroger already does if necessary. • Look at how much shelf space each manufacturer has – how much should each one have?

5. Trend Recommendations • …we could either include recommendations at the end of each section, or at the end…or both (with the recos at the end being more of a recap or ‘next steps’ for Kroger.)

6. Quick Hair care category overview

7. Category Role • Role • Supporting Dunnhumby data

8. Category Assessment • Need to look up what this is… • How well does the overall hair care category appeal to Kroger’s best shoppers?

9. Category Scorecard • I say we could include just a very streamlined scorecard with the key metrics in it. • Dollar volume (shampoo, conditioner, etc.) • Unit volume • Penetration • Average price • Purchase frequency • Purchase size • Loyalty (Share of requirements) • Other?

10. Category Strategies • Maybe just pick one or two key strategies that go along with the category role. Could include a couple of recos there if we think of any just to keep these poor Kroger people interested.

11. Category Tactics • Pricing • Promotion • Merchandising • Assortment We will deep dive into Promotion (weekly ad analysis) and Assortment (our recommendations on category SKU simplification)

12. Promotion Observations • Weren’t we going to make a chart to track the various ad elements – we could insert it here, highlighting our major observations. Chart includes: • Categories advertised • Size of hair care ads • Degree of discount on hair care ads • Brands advertised • Placement of ad within weekly (front, middle, back) • Impact of co-advertised brands, impact of pricing multiples on volume. • Others?

13. Assortment • Which SKUs are underperforming? • Which brands/items bring unique shoppers to the category? Which brands or items are playing on top of one another? (with similar shopper targets) • SKU Simplification Recommendations • Hispanic/AA Observations • Hispanic/AA Assortment Recommendations

14. Plan Implementation • Here is where we describe the next steps we recommend Kroger to take… • Category Review – revisit the category in 6 months to a year to ensure recommendations are still relevant and to track the recommendations that you implement or test in stores.