1. technology and computing
2. technological innovation

Tyson Foods
Revenue Management Capability
Curt Balara
Vice President, Revenue Management
 Tyson Foods is “walking the talk” on
building leading edge capabilities
 Our Revenue Management
CoE is best-in-class among CPG’s
 We will remain ahead of the pack
in this critical space
Our Model Delivers Sustainable, Profitable Growth
Strengthen
the Core
Extend
Brands into
Adjacencies
 Strategic Pricing
 Reinforce Brand Strategy
 Brand Role
 Price/Pack Architecture
Impacts Revenue Management
Fuel Growth
through
Efficiency
 Trade Analytics
 Event ROI
 Annual JBP
 Execution
Build
IndustryLeading
Capabilities
Revenue
Management:
Pricing & Trade
A Differentiated Capability
Creating Value Through Insights-driven Execution
Tyson Foods Revenue Management
Strategic
Pricing
Customer
Funding
Structure
Trade
Analytics
A fully integrated, holistic
approach maximizing
advanced analytics to
bring winning ideas and
shape our strategic direction:
1. Organizational Commitment
 Structure, people, culture
 Data, tools, processes
3. Advanced Analytics
 Product/brand level elasticities
 Price gap, key price thresholds and
cross elasticities
 Event ROI’s
5. JBP Execution
 Profit-based customer sell-in
approach
 “Pay for Performance”
 Drive category growth
2. Bias for Action
 Proactively bridge short-term and
long-term
 Cross functional collaboration
 Pragmatic solutions
4. Price Architecture
• Price/ Channel / Pack
• Regional pricing opportunities
6. Valuate/Elevate
 Measure outcomes
 Deep dive
 Best practice sharing
Real-Time Solutions to Enable an ROI Mindset
PEAT
Post-Event
Analysis Tool
TPO
Trade Promotion
Optimization
Promotional
event library to
evaluate
efficiency &
effectiveness
of trade
investment
Customized,
one-stop-shop
within TPM
system for
predictive
modeling
Tyson Foods Strategic Pricing Evolution
Pricing Strategist
Inclusion of Science
 Elasticity by
account / PPG
Transactional
 Ad hoc
 Maunual
 Reactive
 Short term
focused
 Holistic financial
recos
 4Ps guidance
 ROI Mindset /
Tools
 Support BU in
making tradeoffs
 Long-term
pricing vision
with “science
and art”
 Pricing and
discount
architecture and
by PPG
 Inform
innovation
pricing
 Cross-channel
impact(s)
 Customer GTM
Perpetual
Value Creation
 Corporate
pricing /
discounting
philosophy
 Innovation and
acquisitions as
per corporate
strategy
 Continuous,
improved
capabilities
We continue to fulfill our industry-leading role…
Fall Summit
November 4-6
Dallas, Texas
 Tyson Foods is “walking the talk” on
building leading edge capabilities
 Our Revenue Management
CoE is best-in-class among CPG’s
 We will remain ahead of the pack
in this critical space
Smart Data Capability
David Ervin
Vice President, Marketing Services
Big Smart
Data Data
“If you dislike change,
you’re going to dislike
irrelevance even more.”
—Erik Shinseki
A cautionary tale…
Right message.
What we Right person.
promised: Right time.
But we didn’t deliver
on our promise.
We ignored
the basics.
And ultimately…
We forgot that
we were talking
to other people.
Data enables us to learn faster than ever before.
Standardization
is critical to
smart data.
• First
Party
• Third Party
• Personal Data
Advertisers are prioritizing
efficiency and effectiveness.
Shift from demographics to
Demographics + Behavior
Ultimately about
driving efficiency and
an effective message.
Smart Data drives identification of target consumers
eliminating inefficient media
and increasing impact.
IRI ProScores Output
IRI ProScores serves as the score
for audience targeting in CPG
$175
$32
Analysis performed
across geographies and retailers.
Analysis provides tailored
recommendations for each brand.
The only thing that
matters is sales.
Experiment relentlessly.
Fail early and forward.
Use data.
But apply common sense.
And use multiple sources.
“The illiterate
of the 21st century will
not be those that
cannot read or write,
but those who
cannot learn, unlearn
and relearn.”
—Alvin Toffler
Shopper and Category
Development
Christopher Witte,
Vice President, Category Development
Shopper and Category Development
Shopper
Insights
Category
Leadership
Shopper
Marketing & Activation
• Designs and Constructs
Shopper Research
• Help Customers Write
Category Business Plans,
Develop Strategies for
Category Objectives (JBP)
• Overall design and
execution of customized,
retailer-specific shopper
marketing programs
• Identifies Retailer Specific
Shopper Insights And
Opportunities
• Apply shopper insights to
all customer programs
• Creates Total Store
Protein, Department and
Category Leadership
Platforms to Enable
Retailer Strategies
• Develops Channel
Insights to Fuel
Segmentation Growth
• Closest To The
Customer: 78 Captaincies
(+13 vs YAGO)
• Humans as Media:
Point of Purchase
Communication of Brand
and Product Story
Insights Are Assembled Into
Shopper Centric Leadership Platforms
Total Store
Platforms
Department
Platforms
Category
Platforms
SNACKS, APPETIZERS &
HANDHELDS
DELI
BREAKFAST MEAT
FRESH BEEF
LUNCHMEAT
FRESH CHICKEN
DINNER SAUSAGE
FROZEN SINGLE
SERVE ENTREES
FRESH PORK
HOT DOGS
FROZEN CHICKEN
FROZEN PROTEIN
BREAKFAST
Protein Leadership Platform
 Focus on Protein meal
occasions, particularly
BFY Snacking & Breakfast
 New Protein Research when,
how much, type of protein
for maximum benefits
 Basket Building opportunities
leveraging protein across
the store
 Activation strategies and tactics
Shopper Marketing playbook,
dieticians
Department Leadership Platforms
 Determine optimal adjacencies and
shelving principles for the refrigerated
perimeter, fresh and frozen aisle in the
grocery store
 Focus on principles that can be applied
broadly, recognizing that there will be
variations by store format
 Category Sizing Tool that can adjust
appropriate size and calculate adjacency
impact
 Partner with our customers to develop
specific department strategies and tactics
Department Lift Opportunity
+4.5
1.0
Optimal Adj
4.5
3.5
Right Sizing
TTL Opp
Refrig. Meat
Frozen
SNACKS, APPETIZERS &
HANDHELDS
BREAKFAST MEAT
FROZEN PROTEIN
BREAKFAST
LUNCHMEAT
DINNER SAUSAGE
FROZEN SINGLE SERVE
ENTREES
HOT DOGS
FROZEN CHICKEN
Fresh
DELI
FRESH CHICKEN
FRESH BEEF
FRESH PORK
Category Leadership Platforms
 Renovation of
Category Platforms around
Key Meal Occasions
 Impact of Merchandising
on Category Conversion
and Cross Purchase
 Enhanced Promotional
Insight to Include Optimized
Price Gaps, Thresholds,
Frequency and Co-Purchase
 New All Automated
Presentation
Investment in People & Capabilities are Delivering Results
Added 13 Category Captaincies vs. YAGO
78 Total Captaincies
+13
78
65
35
Series
43
65
35
43
FY12
FY13
FY14
Tyson FY14 Totals = 44 Hillshire Legacy + 21 Tyson Legacy ; Combined in FY15
o Sam’s +10 : Lunchmeat, Ham, Bacon, Expanded Fresh, Gallo, Uncooked Chicken, Frozen Patties, Froz Snacks/Apps, Bfst Sausage/Waffles
o Grocery +2 : Frozen Protein Breakfast at Giant Eagle, Lunchmeat at Publix
Tyson FY13 Totals = 23 Hillshire Legacy + 20 Tyson Legacy
Source:: Captaincy Tracking; Advantage Survey 2014 (Hillshire Legacy Rank)
78
FY15
Distribution Drive
Tyson is growing 3.5×
faster than competition.
Tyson TPD Growth Rate
(Fiscal 2015 vs YAGO)
 Sharper Analytics on TPDs
Tied To Shopper Behavior
3.5%
 Aligned Organization
Objectives Against TPDs
3.5X
 Added To Customer
Scorecards
0.1%
Comp
Source : Latest IRI FYTD April 26, 2015
Tyson Includes Legacy Tyson, Hillshire, Vans and GFG Categories : Processed Poultry Fz/Rfg, Breakfast Meats, Poultry - Fz/Rfg, Breakfast Food – Fz, Meat – Rfg, Luncheon
Meats, Dinner Sausage, Frankfurters, Dinners/Entrees – Fz, Meat – Ss, Meat – Fz, Entrees
– Rfg, Desserts/Toppings – Fz, Pies – Fz, Appetizers/Snack Rolls - Fz
Tyson
Evolved
Shopper Marketing : The Purchase Journey Has Evolved
Yesterday:
Today:
Total Purchase Journey Execution is Critical
Pre-Shop Executions
CIRCULAR ADS WITH OUR WITHOUT
MANUFACTURER COUPON
In-Store Executions
SAMPLING PROGRAMS – COUNTER
CARDS AND TAKE HOME BROCHURES
SHELF TALKER WITH COUPON TEAR PAD
RETAILER-SPECIFIC
SOCIAL MEDIA POSTS
EXPANDABLE WEB BANNER ON RETAILER’S WEBSITE
FREEZER CLINGS
INSTANTLY
REDEEMABLE
COUPONS
Platform Development:
The Power of One
 Circulation: 30 Million Circulation on March 15
 2 full page centerfold ‘perfect spread’
promoting all day parts across the portfolio
 Integrated with JD National FSI and
called out in the execution
In-Store Experiential Marketing - Shopper Activation
Supercharged by Innovation and Information
Innovation at Tyson 2.0
Jennifer Bentz
Senior Vice President, Innovation and Insights
Innovation Overview
Today we’ll talk about how Tyson Foods
will deliver top-tier performance in the food
industry through innovation leadership.
When it comes to Innovation,
at Tyson Foods we are:
We have a clear innovation strategy
Where We Play
Strengthen The Core
Extend Into Adjacencies
How We Win
❶ Deep Insights
❷ Exceptional Execution
Tyson Innovation Imperative
Differentiated Capabilities
A Track Record of Results
A Game Plan for Future Growth
Differentiated Capabilities
Changing consumer and market dynamics
require a commitment to growth.
Our Trends Council tracks industry changes…
New Family Portrait
Evolution of Value
Feeding Individual
Needs
Feeding a Changing World
Always Connected
Real Simple
Source: Tyson Trends Council / Hartman
…and our innovators apply them.
QUESTION:
ANSWER:
What motivates
Millennials – our
next generation
of shoppers?
A focus on
emotional draw,
transparency,
and global
flavor
experiences.
RESULTING
INNOVATION:
Asian-inspired flavors
We have segmented Tyson Foods’s consumers from “Live to Eat”
to “Eat to Live.”
LIVE TO EAT
Food
Aficionados
EAT TO LIVE
Carefree
Struggling
Disciplined
…and used that consumer understanding, paired
with market understanding to build the Tyson Demand Map.
 Proprietary to
Tyson Foods
 Sizes the
intersections between
who is buying, why
they are buying it, and
what they are buying.
 Used to prioritize
the biggest
innovation spaces
Strong opportunity based on strong need and/or value
Limited opportunity based on moderate need and/or value
No opportunity based on minimal need and/or value
We’ve created a customized process for
rigorous management of the innovation pipeline.
Tyson Foods Control Towers
Prioritization Teams
…and our integrated systems support gives us a competitive advantage.
New Product Database Advantages
One
master
project list
Electronic
workflows
to all TEAM
Members
Centralized
project
P&Ls
Each project uses a standard
timeline and set of activities
Link to
Financial
Reporting,
Spec System,
SAP for
plants
…which enables us to do best-in-class modeling.
Organizational
Capacity
Modeling
*For illustration purposes only.
Timeline
Compression
Modeling
Innovation
Revenue
Projections*
Our talent has a unique mix of experiences and capabilities,
leading to more innovative thinking.
Retail Experience
from a mix of Top Tier
CPG Companies
Extensive
Leading Food Service
Experience
Operations
Expertise in Protein
Tyson 2.0:
A TEAM of
Innovation
Experts
Tyson Innovation Imperative
Differentiated Capabilities
A Track Record of Results
A Game Plan for Future Growth
A Track Record of Results:
In the last 12 months we have delivered
a strong line-up of Retail Innovation.
Park’s Finest Hot Dogs Biggest category platform
launch in 4 years!
 Largest hot dog category
platform launch
 On track to become
an IRI Pacesetter
 Highly incremental to both
the Ball Park brand (83%)
and the Category (25%)
Expanding to two new varieties:
Hillshire Farm Expansion
to both Value and Premium
Lunchmeat segments!
 Both platforms are over
30% incremental to
Hillshire Farm lunchmeat!
Jimmy Dean Frozen Dinner –
User Base Expansion!
 31% purchasers are
new to the Jimmy Dean
Frozen business,
expanding our user base
 Learned lessons on
# SKUs launched (16) and
have immediately applied
to upcoming launches
Tyson Innovation Imperative
Differentiated Capabilities
A Track Record of Results
A Game Plan for Future Growth
A Game Plan for Future Growth
We have the
tools in place
for a successful
innovation
pipeline…
Our future innovation platforms are focused in the right spaces for growth…
Right Part of the
Store
Refrigerated
Sales growing
2X rate of
total Food and
Beverageˆ
Right Categories
% of Categories
we compete in
showing YOY
growthˆ:
92% of our
Frozen
Categories
99% of our
Refrigerated
Categories
ˆSource: IRI Total US MULO L52W ending 4/19/15
Right Brands
of our 2016-2018
Innovation Platforms against our
Highest Margin focused Brands
with Strong Market Potential
Tyson Innovation Imperative
Differentiated Capabilities
A Track Record of Results
A Game Plan for Future Growth
At Tyson 2.0, we’re…
on Innovation!