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Competency Definitions: Pricing & Promotion

Ability to understand, develop, and implement pricing and promotion initiatives that support the Great Local brand pricing strategy

Foundation Understands pricing and promotion tactics to drive category growth • Understands the difference between variable and fixed costs in a standard cost model • Conducts post event analyses to understand why specific events have been successful or unsuccessful • Executes successful in-store & online promotional events • Understands promotional mix • Understands how promotional drivers are applied in- store & online, including all traditional & digital marketing channels used by ADUSA • Understands retail margin calculations and targets, including those for eCommerce • Is aware of basic in-store & online marketplace pricing and promotional strategies for assigned categories • Understands how online competitive pricing is tracked • Understands additional factors which may impact price (e.g., Reclaim/SWELL allowances and Cash Discount/Payment terms) • Understands basic use of pricing tools such as Revionics • Adheres to regulatory measures that pertain to the category (i.e. laws, WIC, etc.)

Advanced Recommends pricing and promotion solutions based upon strategic direction • Understands the relationship between National and Private Brands pricing strategy • Understands size/value relationship for pricing • Understands the in-store & online cost drivers that can be manipulated to deliver a particular goal • Understands how in-store & online pricing, promotional strategies and the competitive environment impact forecasts and plans • Recommends adjustments to promotion tactics to solve unanticipated problems which arise • Understands the concept of price elasticity and price gaps • Develops a response to competitive pricing actions • Determines the longer-term impact of in-store & online promotion tactics on business results • Understands application and solutions provided by Revionics and other tools • Understands how weighted average price impacts decisions • Manages pricing guardrails from the pricing strategy • Understands how online competitive pricing is tracked and its impact on ADUSA’s pricing

Mastery Identifies pricing & promotion tactics to gain significant and substantial competitive advantage • Develops pricing strategies which incorporate price elasticity, thresholds, cost components, commodity impacts, as well as the impact of volume, market share and promotion • Develops innovative promotion strategies and initiatives to drive traffic and volume • Makes recommendations concerning promotion depth for specific situations • Trains and mentors' others on advanced use of pricing and other tools such as Revionics • Collaborates with others to assure the relevance of the pricing strategy, guardrails, constraints and business rules

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