2022 Consumer Marketing Plan

2022 Marketing Priorities for the Local Store 1 2 Local Lift Ace Rewards

Why?

90% of shopping starts in search

Why?

>60% of your sales from Loyal customers Participate in all campaigns with no caps

Action:

Always on, minimum $500 per month, per store

Action:

Social Media

Events

Why?

Promote Your Local Store & Care for your Customers

Why?

Events Drive Traffic

Action:

Opt-in to monthly paid ads via the Community Calendar and answer all customer comments and questions in < 24 hrs

Action:

Participate in all seven in-store BBQ parties

2022 National Brand Campaigns reinforce Ace’s key pillars of service, quality and convenience across the Paint, Power, BBQ and Home Preservation categories by reinforcing all the ways consumers can shop Ace including delivery from their neighborhood Ace.

2022 National Media Investment Media spend to drive

Media Landscape Adults Spend 5 Hours Per Day Consuming Video 3+ hours Traditional TV 2+ hours Online Video Time spent with video remains consistent but how it’s being consumed continues to evolve Connected TV (CTV) on the Rise Ace continues to dial up and leverage premium CTV to reach cord-cutter, cord-nevers and multi-subscription households

consideration and sales 2022 Ace Media Spend

43% Digital

57% Video

Leveraging mass-reaching VIDEO to support Consistent FAMOUS FOR FOUR messaging

National Content & Social Media Content 2022: Ace Project Place, A New Destination For Tips and Advice • Ace Project Place is a new addition to Acehardware.com • Videos and infographics will inspire viewers on unique DIY Projects • Hosts for these video series include Ace Experts and Product Experts • The Ace Project Place will change monthly to highlight the key category for consumers to engage in that month Social 2022: Be The Helpful Place in the Social Space • Provide timely, relevant, and helpful customer service through our national channels • Build strong community engagement with our customers and brand advocates • Create compelling content that entertains, educates, informs and inspires • Create strategic ad campaigns that target the right customer at the right time in their journey.

NEW: Watch & Share Ace Project Place Content In Social & Email Marketing To Share: Visit Soci and Ace Marketing Muscle for Assets

National Promotions

• 10 National Promotions * - 7 Preprints - 3 Non-Preprint Sales • 7 In-Store Parties *

Changes for 2022: Preprints: One less preprint to allow retailers to funnel previous print and distribution dollars to Ace Local Lift. Ace Local Lift generates an average ROI over $8. Ace preprints have shown an average ROI of about $4.80.

Ace Local Lift +$8.00

$4.80 Ace Preprint

Average ROI

Before investing in more than seven preprints make sure you are maxing out Ace Local Lift, Ace Rewards and SOCi Paid Ads

20 2 RATES

2022 RATES

*See the 2022 National Marketing Calendar and Key Dates for more details

2022 Store Event Plan Hosting in-store events allows our red vested heroes to showcase both their incredible product knowledge and amazing customer service.

What you need to know now

• All store events below will be backed with national media support • All stores will be opted into all store events through the Ace Rewards calendar/grid • All store events are BBQ centric and will feature giveaways and party specific offers • Store Event Playbooks - everything you need to execute

Ace Rewards sign ups * +16.2%

Avg. Sales per store * +15.3% +$1,471

Customer Count * +16.1%

SUPPORTING CATEGORIES

DATE

EVENT

THEME

Avg. GP$ per store * +11.3% +$418

Weber Genesis Launch

Over 40% of all Traeger grills sold go to customers who’ve seen a demo! **

February 5 BBQ Kick-Off Party

BBQ

Transactions *

BBQ/OPE/ Lawn & Garden

April 23

BBQ Fest

BBQ

+10.8%

BBQ/Free Flag Giveaway BBQ/OPE/Power

May 28 Memorial Day BBQ Party

4th of July BBQ Party Labor Day BBQ Party

June 25

BBQ/Power

* 2019 Event Results compared to prior year ** Traeger Study

August 27

BBQ/CMN

BBQ

November 19 Thanksgrilling Think outside the oven

BBQ

Consumers who attend your event are more likely to come back within the next 90 days compared to those that do not attend.

December 3 Christmas BBQ Party Gifts & Grillin’ BBQ/Power/OPE

Sign Kit Support the Win the Month Consumer Marketing Plan The Sign Kit helps support and execute the Win the Month categories, brands and promotional deals at retail each month. Stores on the Full Sign Kit program also receive additional components to help support the Famous For Four categories. Full Sign Kit program includes customized options Customized signage is a feature for retailers who participate in the Full Sign Kit program. This customized option provides an opportunity to create up to three End Cap Signs or Window Posters each month for your own promotions. Deadline to add custom Window Posters and End Cap Signs to your Sign Kit is the same as the monthly bulletin due date.

Full Sign Kit offers a great value: $185

Price Cards to support Events, Red Hot Buys, Month-Long Instant Savings and Dynamic Promotions

End Cap Signs

Optional End Cap Signs (option in Sign Kit customization tool)

Window Posters

Circular Sign for Circular Sign Holder

Bagstuffers

Counter Mat Inserts

Execution Guide

Copies of Month-Long Preprints

Create your own custom Price Cards or download your monthly Price Cards and print in store. Card stock is available on Ace Marketing Muscle.

Sales and Event Signage

Extra Promotional Material from Various Departments

For more information, visit: ACENET > Marketing > Promotions > Sign Kit Customization See the Win the Month page for full planning execution.

To sign up for the Full Sign Kit, email: promoexecution@acehardware.com

Famous for Four categories drive differentiation for Ace and are key must-wins

HOME PRESERVATION

BACKYARD & BBQ

PAINT

POWER

• Fuel Benjamin Moore at Ace with national & local marketing • Extra Mile Promise is our service differentiator that allows Ace to take credit for having everything the consumer needs to complete a paint project, including best brands of paint • Continue to target DIY and PRO customers to steal market share from the big boxes

• Keystart automotive

• Drive best brands in OPE via Level 3 reset • Leverage differentiation with STIHL through amplified marketing • Expand assortment and focus of battery with OPE • Leverage Ace Rewards Data to increase tools per customer via bare tool conversion • Enhance user experience on acehardware.com across the category

• Execute 7 in store parties/ events featuring BBQ • Certify Ace BBQ Experts through BBQ Bootcamp. Get credit with marketing support • Enhanced focus on Fuel; Propane online, Pellets, charcoal

keys featured in national marketing

• Relevant, regional

assortments to launch Scotts Spring sales

• Seasonal triggers

targeting fertilizers, weed controls and insecticides

• Enhanced marketing

support around new YETI colors and products

• New product launch support

BEST BRANDS

2021 Sales are +7.6% (+144.3M)

National Digital Marketing The Ace Digital Center of Excellence oversees the ever-changing digital landscape, driving best-in-class digital strategies and execution on behalf of Ace retailers. In 2022, Ace will invest 43% of Ace’s National Media budget in digital to drive customer transactions, both to your store and acehardware.com.

80% of Customers begin their purchase journey online

43% of National Media Spend in Digital

Acehardware.com and Digital Marketing drive over 19 million Ace store visits annually

National Digital Marketing ti nal Digital Marketing

As consumers navigate through their path to purchase, across multiple digital touchpoints and devices, we will serve targeted ads and connected messages across digital channels, with the goal to drive sales, be Famous For Four and differentiate through our Best Brands.

Customer Purchase Journey

Customer Target Generate Awareness and Consideration for Ace Products and Services

Digital Media Tactic

Awareness

Social Media Online Video

• Brand Campaign Messaging • Famous for Four/Best Brands • Content including Heartware Stories, Leftovers with Annie and Ace Project Place

Display (Banner) Ads

Consideration

Paid Search and Search Engine Optimization (SEO) Digital Media Tactic

Customer Target Drive Purchase, Instore and Online • Customers actively searching for a product in your store or on acehardware.com • Sale and National Event promotion

Purchase

Affiliate Program

Digital Circular

Refer to pg.19 for a guide on Retailer Priorities

Loyalty

Acehardware.com Be the helpful place & make more money - go all in

The Power of Ace Rewards Your most effective marketing tool Retailer Benefits: Unleash the Power of Ace Rewards What’s in it for you? Ace Rewards is a multichannel marketing solution for Ace retailers. Through a variety of communication touchpoints, it connects with members on a personal level, driving satisfaction and sales.

57% OF SALES FROM ACE REWARDS MEMBERS

$7.7 BILLION ANNUAL CUSTOMER-LEVEL SALES $ 53 MILLION IN INSTANT SAVINGS >$194M INCREMENTAL SALES $50.7 MILLION INCREMENTAL GROSS PROFIT

NEW MEMBER

56 MILLION ACE REWARDS MEMBERS

4.3 AVG ANNUAL VISITS

$212 AVG SPEND

AVG BASKET PER MEMBER WHEN A REWARD IS REDEEMED $37.76 PREMIER $1,375 AVG SPEND 31 AVG

105 MILLION DIRECT MAIL

ANNUAL VISITS

2.6 MILLION APP DOWNLOADS

742M EMAILS

The Value of Your Ace Rewards Members

The Ace Rewards program increases the number of loyal, valuable members returning to your store

The power of Ace Rewards in your store

Encourage enrollment to the Ace Rewards program with these 3 easy steps:

· Ask every customer for their Ace Rewards card, phone number or mobile app at checkout. · If they are not a member, sign them up! · Inform members on the great benefits so they understand the value of the program. One in three people change their email address once per year. Make sure you have the most up-to-date email address on file. Ask every customer for their email address with every transaction.

What’s New for 2022? Leverage High-Performing Campaigns • Continue to maximize ROI of Targeted Offers through enhanced personalization targeting what is most relevant to our customers • Adding Life Events campaigns to communicate with members during personal milestones • Focus on multi-channel engagement across campaigns • Increase digital redemption of offers to drive down mail cost Refresh Strategies on Existing Campaigns • New Member Series will fold in the highly successful Win for Life campaign • Ace Rewards Program Communications will have a mail component to send relative program touchpoints through the correct channel • Birthday Drive and Birthday Inactive will be rolled into existing campaigns, Birthday for Active Members and Reactivation of Inactive Members • Take app engaged customers and move their communication to a more digitally focused track · Currently testing this strategy with Premier campaigns

Launching in 2022: Improved New Member Series Enhancements to the New Member Series will significantly improve customer retention and 12-month spend. By folding in the highly successful Win for Life Customer Contact Strategy, we will migrate from a channel-driven approach to a customer-driven welcome strategy with marketing that educates and engages members throughout their onboarding. Launching in 2022: Improved New Member Series

Enhancements to the New Member Series will significantly improve customer retention and 12-month spend. By folding in the highly successful Win for Life Customer Contact Strategy, we will migrate from a channel-driven approach to a customer- driven welcome strategy with marketing that educates and engages members throughout their onboarding.

Tried and True plus Surprise and Delight offers

Increase to 8 trips per member (vs. previous 4-trip total)

Improve to 80% retention (vs. previous rate of 60%)

New Member Series

Digital-led offer delivery

Tailored communications

Grow to $248 average 12-month spend (vs. previous $184 spend)

Yearlong onboarding

7549_4869_F21_Ace Rewards Convention Brochure.indd 6

8/17/21 1:46 P

Increasing App Adoption

Background: Continue increasing app adoption through added benefits such as Premier App Extras and other targeted app-only communication touchpoints. Next steps are to begin minimizing print and distribution costs for retailers across all campaigns by taking the app-engaged audience on a more digital only path.

Results:

$20 off $100

Segment Segment Mail Quantity Mail Quantity Mail Quanti y Mail Quantity Segment Segment

Mailed Mailed 262K 262K 262K 262K ailed

Mailed

Segment Segment Segment t

Mailed Mailed 213K 213K 213K 213K 8% 8% 8% 8% $1.7M $606K 18K 18K 18K $1.7M $606K $606K $1.7M Mailed ailed $1.7 $606K

Mail Quantity Mail Quantity ail Quantity Mail Quantity

Barcode Redemption Rate* Barcode Redemption Rate* Barcode Redemption Rate* Barcode Redemption Rate*

Barcode Redemption Rate* Barcode Redemption Rate* Barcode Redemption Rate* rcode Redemption Rate*

8% 8% 8%

Barcode Sales Barcode Sales Barcode Sales Barcode Sales Barcode GP Barcode GP Barcode GP Barcode GP Barcode Transaction Barcode Transaction Barcode Transaction Barcode Transaction Barco ross Profit

Barcode Sales Barcode GP Barcode Transaction Barcode Transaction Barcode Transaction Barcode Gross Profit Barcode GP Barcode Sales Barcode GP Barcode GP Barcode Sales Barcode Sales Barcode Transaction

$3.2K $993K 20K 20K 20K 20K $159 $159 $159 $159 $3.2K $993K $993K $3.2K $3.2K $993K

18K $90 $90 $90

AOV AOV A V A V

AOV AOV AOV

$90

AOV

*A strong barcode redemption rate = 3-6%

Email Marketing

Why Should I be Opted in? Ace Rewards Email Marketing drives revenue for your store and does not incur any additional distibution cost to retailers. In addition to less cost to the retailer, in Fall 2021 Ace Rewards will begin communicating in a more digitally-focused manner to members who engage with email or mobile.

TRIGGERED & RECURRING PROMOTIONAL

ONLINE/ NON-MEMBER

RATE

LOCAL

Open Rate

20.4%

13.5%

19.4%

10.6%

Click Rate

3.4%

1.1%

2.6%

0.6%

Open to Click Rate

11.9%

5.5%

8.5%

5.9%

What’s New in 2022: 1. Expanded YETI journey for new customers 2. Scotts application reminder journey 3. Re-engagement campaigns with FF4 Brands 4. UPDATED! Monthly App Download Emails

5. NEW! Monthly Statement Emails 6. NEW! Quarterly Premier Welcome, Almost There and Don’t Lose 7. NEW! Premier App Extra communication 8. COMING SOON! Birthday & Anniversary Notification emails

Grow Ace Rewards in Your Store

1. Get all associates trained! WHO: All cashiers, associates, store managers and store owners

WHAT: 6 revamped training modules WHEN: Available on-demand NOW! WHERE: Ace Learning Place

WHY: A fully trained team can provide the best customer experience and help your store meet your Ace Rewards goals.

Not sure where to begin? The Cashier and Manager Quick Tip modules are easy to complete (only 5 minutes!) and will teach simple ways to improve in-store execution of Ace Rewards. 2. Keep store signage fresh and relevant! • Order more signange via Ace Marketing Muscle • Increases awareness of the program and grows enrollment,

which in turn increases your stores scan rate 3. Encourage mobile app usage! • Customers can sign up later (at their convenience) • Get offers and rewards faster (and right on their phone- no need for paper) • Younger, more affluent customer base

Local Marketing Priorities

Capture consumer demand for Famous For Four categories through lower funnel marketing tactics and maintain loyalty. Stores should have a full funnel approach to categories they want to be famous for.

Use the below guide to help prioritize your marketing spend

What you want to be famous for

Famous For 4

Corporate - Centralized TV, YouTube andDigital Video, Display and Paid Social

Local • SOCi - Facebook/Instagram • Digital Display • OOH • Direct Mail • Radio • Email/GMB Posts

Awareness

Local • National Circulars

Consideration

Local • SOCi Ads & Events

Local • Ace Local Lift and Local Sync • National/Local Events

Purchase

Loyalty

Ace Local Lift Reach consumers in real-time, who are actively searching for the products you carry and the services you provide, through Google Paid Search.

Benefits: 1. Only pay-per-click (PPC) 2. Capture real-time consumer demand 3. Advertise your store without discounting 4. Acquire and attract new consumers 5. View Ace Rewards sign-ups 6. View performance in the

90% of consumers search for products and services

LOCALACT reporting dashboard

100% Ace Brand Co-op Reimbursement

Stores on Ace Local Lift are averaging:

Action Items: On the program? • Ensure you are maximizing the program. Email support@localact.com for a store-specific customized budget. • Review your monthly budget once per quarter to make sure your maximizing your opportunity Not on the program? Sign-up ACENET > Marketing > Ace Marketing Muscle > Ace Local Lift > Sign-up Now!

$8+ +7.2% 160 +35% return for every $1 spent more in sales than stores not on Local Lift additional store visits per month more sales on acehardware.com

SOCi 2.0: One Click Opt-In Calendar and Smart Responses

SOCi Community Calendar: A Monthly opt-in social media calendar for organic and paid content Only 2%-4% of your followers even see your Facebook post. Advertising is critical to get your local store in front of consumers.

Answer Google, Facebook, and Yelp Questions & Comments in Record time using “Smart Responses“ in SOCi 1. Save time using templated review responses

A. Click Generate Response or B. Pick from a list of Templates

2. When clicking “Generate Response”, you’ll get a different response each time. The response will include the customer’s name and you can also edit the responses.

Download the SOCi app today. Get notifications and answer reviews in real time with the click of a button.

Key Benefits Include: • Click to schedule organic & paid content with the ability to edit • Schedule spend and it bills to your Ace statement. • Ads will range from $13-$15 per day and up to approx. $420/month + 10% platform fee • Monitor reporting to track progress • 100% co-op reimbursement for paid advertising

Action Items: 1. Opt-in monthly to the

Need Help? Use the SOCi Support Hotline or email

SOCi Community Calendar 2. Answer Reviews < 24 hours 3. Downloadthe SOCi App

Phone: 858-504-3510 M-F – 10am – 7pm CST Email: support@meetsoci.com

Monthly Checklist... Check out the Ace Marketing Muscle homepage for newly added templates and to view your Ace Brand and Paint Co-op balances

New Enhancements coming in 2022

Use your Ace Brand Co-op on Local Lift to receive 100% reimbursement

New Email Service Provider • Enhanced templates with more creative options (drag and drop ability) • Robust segmentation options with real time counts (Including B2B segments, safe to send and custom lists) • Integration with new Digital Asset Management system • Option to preview email on multiple devices • Ability to create seed lists for test emails • Streamline orders to deploy to multiple email lists in one order (Ace Rewards and Safe to Send) Content Integration of the new Digital Asset Management platform into Ace Marketing Muscle will allow a seamless transfer and full suite of content (brand, vendor, etc.) for retailers to utilize.

Check out the interactive resource center to find Marketing contact information. Search is based on keywords associated with each program, department, etc.

Click on the Insights tab to view metrics on local email performance

Customize local event creative to promote your events

Local Creative As content needs and platforms grow, Ace will offer both DIY and DIFM (Do it For Me) content solutions.

DIFM - Do It For Me The Ace Creative Services team to begin in charging for custom creative beginning January 2022. Email (1) $100 Display Banners (1 set of 5) $150 Custom Logos (3 options) $250 Direct Mail (1) $250 Custom Misc. Print Job Estimate upon request

DIY - Do It Yourself Offering Canva – a free graphic design platform with access to pre-designed templates, where you can add text, images, within a drag and drop formula.

Social Post (Quantity 1)

$100

Imagery resized - file only Billboard creative – file only ROP creative – file only

$50

$150

There will be no cost for Matching Funds programs

Ace will provide templates that will fit within Ace branding to all retailers.

$250

estimate

Be sure to leverage all content within Ace Marketing Muscle and SOCi. Ace will continue to load new content into these platforms.

New Stores: Now Open Mailer

Opening a new store? Let the Ace New Store Team help you let your community know!

A great way to drive traffic is to send out a targeted mailer to show consumers that you are now open in their neighborhood.

Pricing Prices include printing, mail prep & postage

QTY

Cost

5,000

$0.46 $0.40 $0.35 $0.33

10,000 30,000 50,000+

Process 1. Pick mailer in-home date. We recommend 2 weeks after the soft opening 2. Contact New Store Team to start designing creative

3. New Store Team to provide proof of mailer and list of zip codes surrounding the store 4. Finalize mailer creative and approval on mailing list 5. Promote on social media, using ‘Now Open’ assets on SOCi

For more information: ACENET > Marketing > Local > New Store Marketing Resources

New Stores: Grand Opening Events 5 Steps to a Successful Grand Opening: Step 1: Pick a 3-day weekend Step 2: Contact the New Store Team to start designing creative

Step 3: Order Grand Opening Product Deals

NEW for 2022: Every store will receive a full $3,000 credit on the products ordered for the event. The credit will appear on your Ace Statement after the event.

Step 4: Order additional Promotional Materials: • Interior Grand Opening Sign Kit • Exterior Signage Packages • Inflatables & Ca rts

Option 1: Grand Opening Preprint

Option 2:Tri-Fold Grand Opening Direct Mail

Step 5: Promote on social media, using ‘Grand Opening’ assets on SOCi

Option 3:Ace Marketing Muscle Grand Opening Postcard

For more information: ACENET > Marketing > Local > New Store Marketing Resources

Anniversary Events NEW 2022 Requirement: Must be 5, 10, 25, 50, 75, or 100-year Anniversary

Tri-fold Anniversary Direct Mailer:

Anniversary Preprint

Social Media Assets Promote the event on social media, using ‘Anniversary’ assets on SOCi

Ace’s New Store Team will help plan and execute your upcoming anniversary event!

NEW: All milestone anniversary events receive a full $1,000 credit on the products ordered for the event

New Store Team: Annie Hunter abrown@acehdardware.com Adrienne Jamieson ajamie@acehardware.com Katelyn Berg kmcgo@acehardware.com

For more information: ACENET > Marketing > Local > New Store Marketing Resources

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