TRADE INFORMATION SESSION
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1 TRADE INFORMATION SESSION
2 AGENDA Vintages Ecommerce Updates Vintages Brand Campaign, Essentials Package, & Merchandising Guide Updated Essentials Targets Wines of the Month Events Licensee Programs Questions & Discussion
3 E-COMMERCE UPDATE Kathy Cannon, Director, Vintages
4 VINTAGES RELEASES ONLINE E-Commerce Update Starting October 14 th Flagship Discoveries Starting November 11 th A + B feature products Quarter 4 Full release! Barcode printed in the release book
5 2017 AWARENESS CAMPAIGN
6 1. Increase Vintages awareness with a dedicated brand campaign. 2. Increase program awareness and broaden reach for Release Program with targeted tactics and regular cadence throughout the year. 3. Attract new customers to the category by making the brand more approachable and relevant to a younger, less experienced wine drinker. 4. Change perceptions about what the brand stands for to broaden its reach and appeal.
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8 GLOBE AND MAIL ROP
9 OWNED PUBLICATIONS
10 NEW! PRINT ADVERTISING +
11 NEW! DIGITAL ADVERTISING +
12 BRAND CAMPAIGN
13 NEW! BRAND AWARENESS Knowledge & Expertise Quality & Value Curation Newness & Discovery
14 Knowledge & Expertise
15 Quality & Value
16 Newness & Discovery
17 Curation
18 BRAND AWARENESS
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20 RELEASE AWARENESS
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22 LCBO. COM ENHANCED P.I.P. s/wine/vintages-new-wines-epp.html
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24 UNCORK SUMMER JULY 13
25 Pre-Event: #uncorkvintages Paid FB: June #uncorkvintages content calendar
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27 Post Event
28 Working Together
29 THIS IS VINTAGES SEPT. 21
30 This is Vintages Event Walk-around tasting Thursday, September 21 st 7-10 pm Airship 37 (Distillery District) $45/person 200 tickets
31 This is Vintages Event 40+ products (Release & Essentials) Vintages brand highlight Kim Crawford brand highlight Food stations DJ Outdoor seating area #thisisvintages
32 2017 ESSENTIALS: PAID SUPPLIER PACKAGE
33 OVERVIEW To increase awareness for the Essentials Collection, Vintages is offering a new paid supplier opportunity that includes external media and an in-store display. Opportunity is available starting in P12 For two brands Participating products must be on BAM or LTO offer Brands will be featured together in promotional material and merchandised together on display. Cost: $20,000 ($10,000 / supplier)
34 PRINT ADVERTISING METRO NEWS Half page ad in Toronto on the 1 st Thursday of the period Half page ad in Ottawa on the 1 st Thursday of the period Reach: Metro Toronto: Circ. 198,198 / Readership 650,000 Metro Ottawa: Circ. 45,639 / Readership 124,000
35 PAID SOCIAL MEDIA FACEBOOK LINK ADS Utilize hyper targeted paid social media to engage target with Essentials message and drive traffic to lcbo.com for purchase. Timing: 4 weeks Estimated Total Impressions: 2.9 million Targets: Paid posts will target people who are already more likely to be interested in wine. Niche targets - Wine, Winemaking, wine and food matching, wine tasting. Digital ads will link to PIP page on lcbo.com via buy now CTA.
36 IN-STORE DISPLAY CUSTOMER FAVOURITES 2 skus on front facing end aisle stores (Toronto & Ottawa) P12 start Signage: backer card and shelf talkers
37 2017 VINTAGES MERCHANDISING GUIDE
38 The boutique merchant within the LCBO Vintages takes the world of wine and delivers a diverse, hand selected ever-changing portfolio of unique limited and highly sought after wines. Vintages experts deliver the total wine experience, empowering customers to explore and shop the globe with confidence.
39 NEW! MERCHANDISING GUIDE A resource that formalizes merchandising requirements and display best practices. Easy to use guide provides staff with tools to make merchandising decisions specific to their location. Deliver a consistent shopping experience. Invite new customers to shop Vintages by making the section easier to navigate. Brand awareness & clarity
40 IN-STORE EXPERIENCE
41 CONTENT OVERVIEW All About Vintages Merchandising Standards Signage Building Effective Displays Operational & Inventory Details General & FAQ s
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59 IMPLEMENTATION Timing: P6 Introductory letter from Retail, Sales & Marketing to accompany Merchandising Guide. Launch video on the portal. Section re-set with VM support. Fixture enhancements in Flagship stores.
60 MAINTAINING THE EXPERIENCE Quarterly Audit by Visual Merchandising District Manager Top 5 Checklist Ongoing Refinement of Guidelines
61 MEASURING SUCCESS Exit Surveys Customer Engagement Customer Acquisition Retail Feedback
62
63 UPDATED ESSENTIALS TARGETS Colby Norrington, Vintages Category Manager, New World Wines
64 VINTAGES NET SALES SKU TARGET - ESSENTIALS Updated Essentials Package Based on Subset s performance when composed by 4 SKUs or more. Based on Set s performance if less than 4 SKUs SKUs cumulative share of the Subset / Set in order to protect 90% of net sales.
65 VINTAGES NET SALES SKU TARGET - ESSENTIALS Updated Essentials Package Minimum net sales SKU target: $450K. Maximum net sales SKU target: $1.5M. In the example below the new target is $1,200,000: Set Set Subset Essential Net Sales Cum. Share Desc. Rolling 13 TY Share ITALY RED TUSCANY OTHER Essential 1 $ 5,000,000 52% 52% ITALY RED TUSCANY OTHER Essential 2 $ 2,500,000 26% 77% ITALY RED TUSCANY OTHER Essential 3 $ 1,200,000 12% 90% ITALY RED TUSCANY OTHER Essential 4 $ 1,000,000 10% 100%
66 WINES OF THE MONTH Colby Norrington, Vintages Category Manager, New World Wines
67 WINES OF THE MONTH Wines of the Month Eliminating the Benchmark Program as of P9 Expanding the WOM to a bi-weekly program Additional spots will focus on products only over $22.95 The products will: Have a wide customer appeal Over deliver for the price Provide a trade up opportunity
68 HOW IT FITS IN Wines of the Month The $17 solution is an approachable price point focus program AIS are wines suited to gifting WOM are wines with broad appeal $19.95 $22.95 Implementation is effective for the last release of P9
69 EVENTS Greg Tranah, Director of Operations, Vintages
70 OVERVIEW Events Updates on new initiatives from April Trade Day Data Social Media Brand Booths Event Tenders for February August 2018 Product / Themes Partnerships Occasions and Locations
71 DATA Events Long Form ON-LINE survey (July 2017) Access customer attitudes & preferences Supports development of future experiences and designing the marketing mix On-Site Customer Satisfaction Forms (June forward) Anonymous, Brief, Supports Metric Development (Ex. 4.5/5) Measuring Recruitment and Retention (July forward) # of New VSO Accounts per Event
72 SOCIAL MEDIA Events Event specific tactics (July, September) Pre promotion (develop content), during (fun hooks), post (sharing, community), etc. Will integrate with larger Vintages marketing and brand campaigns where appropriate
73 BRAND BOOTHS Events GOALS CLEAR TOUCH-POINT AT EVENTS ONBOARD NEW CUSTOMERS ENGAGING ACTIVITIES EXPLAIN THE BRAND ACTIVATIONS UNCORK SUMMER VINTAGES KIOSK (July) Facilitate long form survey Register new customers as Vintages Insiders ROM CANADA 150 VINTAGES KIOSK (August) Register new customers as Vintages Insiders RECRUITMENT EVENT VINTAGES WALL (September) Explain Vintages and Program Wines Register new customers as Vintages Insiders
74 2018 EVENT TENDERS Events Letter has been issued for February August tenders Check Trade Resources Website Specific Product/Themes for Event Partnerships between other brand categories Continue to create new opportunities Occasions (eg. Brunch) Place (eg. Muskoka, Collingwood, New Venues)
75 LICENSEE PROGRAMS Julie Hauser, Senior Planner, Vintages Licensee Programs
76 OVERVIEW Licensee Programs Vintages Licensee Sales Trends Vintages Licensee Programs Overview Licensee Only Portfolio Overview Licensee Only Portfolio Sales Trends New Licensee Portal
77 VINTAGES LICENSEE SALES TRENDS Licensee Programs VINTAGES LICENSEE SALES $35M +7.90% Over LY VINTAGES LICENSEE MARKET SHARE 6.43% +7% Over LY Data as of Period /2018
78 VINTAGES LICENSEE SALES TRENDS Licensee Programs Top Ten Sets by Net Sales GROWTH CALIFORNIA RED % SPARKLING OLD WORLD % NEW ZEALAND WHITE % ITALY RED +6.00% SPECIALITY PORTFOLIO % WASHINGTON % ROSE OLD WORLD % KOSHER % SAKE % FRANCE WHITE % LOSS ARGENTINA RED -9.25% PORTUGAL % EMERGING EURO WHITE % FRANCE RED -2.80% WHISKY % CALIFORNIA WHITE -1.94% AUSTRALIA RED -3.87% CENTRAL&S. AMERICA RED % FORTIFIED OLD WORLD -2.84% ONTARIO RED VQA -6.51% Data as of Period /2018
79 VINTAGES LICENSEE SALES TRENDS Licensee Programs Top Three Sets by Net Sales Under $30 CALIFORNIA RED +6.14% NEW ZEALAND WHITE % WASHINGTON % Over $30 CALIFORNIA RED % SPARKLING OLD % WORLD ITALY RED +8.60% Data as of Period /2018
80 VINTAGES LICENSEE SALES TRENDS Licensee Programs Top Three Sets by Case Volume Under $30 CALIFORNIA RED +3.03% NEW ZEALAND WHITE % ITALY WHITE -0.88% Over $30 CALIFORNIA RED % ITALY RED % SPARKLING OLD % WORLD Data as of Period /2018
81 VINTAGES LICENSEE PROGRAM Licensee Programs Services to Licensees Pre-order from upcoming releases Licensee tasting opportunities Product Consultation and advice Focus on education and customer service How you can work with us Partner on product tastings Proposal to Julie Hauser 6 months in advance Refer customers who would like to pre-order Contact Julie Hauser to discuss ways we can work together to sell VINTAGES products E: julie.hauser@lcbo.com
82 LICENSEE ONLY PORTFOLIO Licensee Programs LCBO collaborates with suppliers to develop and promote the Licensee Only Portfolio Requirements to Participate Sales Target: Minimum $80,000 net per year Requirements: Provide proven sales history and upfront commitments from on premise customers Expectations: Sales driven by agents Sales Tools Portfolio available on new licensee portal Existing skus can participate in LTO s
83 LICENSEE ONLY PORTFOLIO SALES TRENDS Licensee Programs LICENSEE ONLY NET SALES $5.54M +17% Over LY Set Net Sales Growth vs LY Old World +15% +7% New World +18% +10% Net Volume Growth vs LY Data as of Period /2018
84 LICENSEE PORTAL Licensee Programs
85 LICENSEE PORTAL Licensee Programs Website Features All licensee FAQ migrated to this site Licensee specific content. Requires Login. Licensee Only Portfolio Licensee price lists Licensee price breakdown and calculator
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