Perishables Survey : Table of Contents

Respondent Introduction

Call Cycle Satisfaction

CVI – Customer Value Indicators

Food Brokerage Service Providers

Promotional / Market Insights

Executive Summary

Research Objectives

The 2012 INDEPENDENT PULSE research measures the service performance of:

• Key market FMCG Suppliers and Brokers servicing the Chilled/Frozen & Bakery/Perishables sections within the Independent Retail supermarket channel

• Capturing important individual stakeholder Customer Satisfaction understandings that assist in building better business relationships for future growth opportunities

Key Supplier Representative Service Performance Measures: • Call Cycle Satisfaction

• Rep provides information on products pricing & deals

• Rep merchandises effectively and organises credits when necessary

• Rep assists with plan-o-gram & Shelf management

• Rep delivers on commitments agreed plans and acts with integrity

• Rep understands my business and tailors activities to assist with sales and profits

• Overall Supplier Rep Satisfaction

Research Methodology

Independent Pulse has developed a new unique qualified rating scale, that provides clarity to satisfaction measurements and the opportunity to develop focused and accurate outcomes for participating suppliers.

FMCG Chilled & Perishable Companies 2012

Food Brokerage Service Providers Alliance Marketing Corp (AMC) Bailey Sales & Marketing (Powerforce) Club Sales Creative Activation Liaise Marketing Masterbrokers Retail Merchandising Services (RMS) SalesLink Strategic National

Bakery & Perishables

Service Providers Goodman Fielder George Weston Foods Mrs Crocket’s Kitchen

Chilled or Frozen Service Providers Bartter Steggles (Baiada-Lilydale) Chris’Dips Don KRC Small Goods Fonterra (Mainland, Bega, Ski, Western Star) Hans Continental Small Goods Heinz (Golden Circle, Weight Watchers) Ingham Enterprises Kraft Foods Nestlé Lion Dairy (Daily Juice - Thick’N’Creamy) Manassen (Castello, Baby Bel, Margaret River) McCain Foods (Griffs, Healthy Choice) Menora Foods (Wattle Valley) Mrs Mac’s Murray Goulburn (Devondale, Cobram) Parmalat (Pauls, Rush, Breaka) Patties Bakery (Four n’ 20) Poseidon (Black Swan) P & M Small Goods (Primo, Mayfair) Regal Cream Products (Bulla) Sargents Pies Yakult Co San Remo Simplot (Birdseye, I&J, Lean Cuisine) Unilever (Streets, Flora) VIP Petfoods

Respondent Numbers History

0

50

100

150

200

250

Year

127

159

211

243

2009 2010 2011 2012

Represents over 460 Stores 13% Growth

NSW 25%

VIC 19% QLD

27%

SA/NT 14%

WA 12%

Tas 3%

Metro 65%

Rural 35%

Respondent Store Profile

State Rural / Metro

Base: Total sample n=243

Up to $5m 3%

$5m to $10m

8%

$10m top $15m 23%

$15m to $20m 24%

$20m to $25m 31%

$25m to $30m

8%

Over $30m

3%

Free Standing

Store 38%

Shopping Strip 28%

Shopping Centre/

Mall 34%

Respondent Store Profile

Annual Turnover Store Type

Base: Total sample n=243

72%

28%

10%

19%

39%

32%

Male

Female

Under 30

31-40

41-50

Over 51

Respondent Retailer Profile

Age & Gender Role & Experience

Base: Total sample n=243

44%

40%

11%

4%

3%

4%

15%

17%

22%

39%

Owner / Manager

Dept / Grocery / StoreManager

Dairy Dept. Manager

Perishables Dept. Manager

Less than 3yrs

4 to 6 yrs

7 to 10 yrs

11 to 15 yrs

16 to 20 yrs

Greater than 20 yrs

Independent Retailer Profile

Banner Group

Base: Total sample N=213

25%

22%

17%

14%

7%

3%

2%

2%

2%

2%

5%

Supa IGA

IGA

Foodworks

Supa IGA Ritchies

Supa IGA Foodland

Supa IGA Drakes

SPAR

Supa IGA Khan's

Progressive IGA

Supa IGA Cornetts

Others

Research Objectives

Independent Pulse research captures quantitative and qualitative data providing

concise outcomes for suppliers, industry specific insights and a low cost

opportunity for FMCG Suppliers to best understand their National sales team

customer engagement levels

The Research Program captures Information Pertaining to:

• Most and Least Preferred Suppliers insights for each supplier segment

• Most Important Service factors

• Current Key Issues in relation to market threats, competition and prices

• Insights into improving supplier infield service to the Independent retailers.

• Respondent Demographics and Store Profile – Ideal for staff training

• Year on Year competitive benchmarking

Independent Pulse Report Drill Downs

The Survey Results can be cross represented across a wide range of parameters which helps

Suppliers obtain a greater level of insight into key concerns of Independent Retailers:

By State

By Turnover

By Branded Groups (Supa IGA, Ritchies, etc)

Metro Vs Regional

Tailored Benchmarking against like suppliers

Year on Year Benchmarking

Individual supplier “Regular Call” satisfaction

Specialised Conference Presentations (on request)

Testimonials

At Strikeforce AMC we place significant value on the annual Independent Pulse Survey and the findings.

The Survey provides credible and transparent data measuring service levels and performance of suppliers and brokers field sales teams across a large sample base of Independent Supermarkets.

The Pulse survey certainly assists us at AMC in adopting a targeted approach ensuring we satisfy the key motivator's and sales drivers of the decision makers within the independent stores. The data and information supplied has been instrumental in assisting AMC in building a team which has been rated the Number One Merchandising Service provider for four consecutive years.

For suppliers looking for opportunities to grow their sales through the Independent channel the survey delivers valuable insights.

Michael Bartholomew – CEO AMC

CCA have been involved with the Independent Pulse Survey for the past 4 years, and continue to find it a valuable source of feedback from IGA retailers on our in-field performance. CCA continues to grow its “Independent Exclusive” field force across Australia, and it’s great to see recognition of the capability of our people directly from store owners and managers.

CCA are committed to the long term success of independent retailers in Australia and look forward to working with all of them in 2012.

Daniel Ahern, General Manager – Independent Grocery, Coca Cola Amatil

Testimonials

Ritchies Stores Pty Ltd has been committed to the Independent Pulse Survey for four years. It has been a valuable source for information and a direct conduit for open and honest communication from our stores with regards to the level of service they are receiving from our supplier partners. It enables us to actively quantify and qualify the important key drivers that our supplier partners deliver to each and every one of our stores, whether metro or regional. It provides valuable feedback on supplier call cycles, supplier engagement with store managers and overall supplier understanding, assistance and value-adding to our stores. We use this information to continuously raise the performance level of our supplier partners and improve sales and profitability for the suppliers and our stores. The Independent Pulse Survey is a valuable research tool for our business.

Jarrod Swaine – National Marketing General Manager, Ritchies Stores Pty Ltd

Philip Morris Limited (PML) is committed to providing the best possible customer service to Independent supermarkets and we can't achieve these high goals without valuable feedback. Your feedback will help us identify what we do well and what we can do better and how, by working together, we can attain mutual business growth.

Darcy Moloney - Channel Manager (Hypermarkets/Supermarkets), Philip Morris Limited.

Testimonials

The team here at Liaise Marketing in conjunction with our principals are always evaluating our

performance and as such we continue to strive to achieve better results in the 1,200 independent supermarkets we service. Be it through store distribution, selling direct, or at an account management level with the groups we aim to build sales.

However the Independent Pulse survey allows us to get a different perspective of our performance rather than just sales and distribution, it allows us to understand the store owner/store managers and indeed store staff view of our performance and whether we are meeting their needs. We find it invaluable and appreciate the efforts in putting this report together allowing us to stay in touch with stores.

Over the four years we have improved year on year and we certainly want to continue fighting out of our division, we look forward to taking it to the next level in 2012.

Paul Annetta – General Manager, Liaise Marketing

Thank you to all 279 retailers who took time out to provide feedback on our service. The feedback is invaluable when it comes to developing our in-store execution plans in the Independent Grocery channel. The field team, with the account management team, review your feedback and the results generated to develop improved plans and strategies to ensure we are creating joint value for the retailer, your shoppers and P&G, working toward your needs to drive true business growth.

Coral Grace – Business Manager, Independents ,Procter & Gamble Australia Pty Ltd

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