1. U.S. Sales & Marketing Meeting
Control it!
U.S. Sales & Marketing Meeting
October 2008
Leonard Tsang

2. Agenda Category Objective Market Trends Category Storyboard
Marketing tools
What we need from you
Questions

3. Objective Recap our vision for 2008 –
Need to look forward to 2009 as well at this stage

4. Objective smart made simple Become solid #3 in B2B market share
Debunk Targus as #3 at Retail 4

5. Market Results

6. Overall, the Input Category has grown by 1.6% vs YAG, to $988 million.
Input Category Dollar Sales (vs YAG)
+1.6%
Source: NPD 12MM August 2008 (vs. YAG) 6

7. This category growth is driven by increased keyboard sales
Input Category Contribution (vs YAG)
Source: NPD 12MM August 2008 (vs. YAG) 7

8. And driven almost entirely by Logitech
Input Category Brand Share (vs YAG)
Source: NPD 12MM August 2008 (vs. YAG) 8

9. Within the B2B space, Kensington is a solid #3 in the Input Category, and gaining share. Microsoft is #1 in the category, but Logitech has gained major share to close the gap
Input Category Brand Share – B2B
Source: NPD 12MM August 2008, Commercial sell through (mice, keyboards, desktops) 9

10. Logitech dominates at Retail, and has continued to gain share at every major manufacturer`s expense.
Input Category Brand Share - Retail
Source: NPD 12MM August 2008, Retail (mice, keyboards, desktops) 10

11. What’s our plan?

12. Objective: Retail Debunk Targus as #3 at Retail
Positioning:
Viable alternative to MS and Logitech and superior to all other 3rd party manufacturers with design innovation and the right feature set at competitive consumer prices
Strategy
Use Slimblade Trackball intro as hero product to create buzz / continued awareness of Kensington leadership in trackballs
Displace Targus Stow and Go mobile mouse at retail with Ci10
Grow through penetrating OPSS and second tier retail
Current and Alt channels: 2nd tier retailers – Bed Bath Beyond, RadioShack, regional CE stores; Mass; Dept Stores

13. Objective: B2B Become solid #3 in B2B market share
Positioning:
Position Kensington as the price/performance leader
Strategy
Use VAR program to create B2B awareness and demand
Current and Alt channels: 2nd tier retailers – Bed Bath Beyond, RadioShack, regional CE stores; Mass; Dept Stores

14. The Control It! Story

15. Target User Environments
Travel
Home
Out & About
Office

16. Why to Buy? My touchpad is so difficult to use. My mouse broke.
I need a second mouse to travel with.
My mouse broke.
I want to get a mouse that’s better than the one that shipped with my system.
My touchpad is so difficult to use.

17. Introducing… The Kensington Spring 2009 Lineup

18. Slimblade Trackball

19. The Kensington Trackball Legacy
Legacy Expert Mice had created a following for Kensington trackballs
The Expert 7 is currently Kensington’s top-selling input sku *
We took the trackball concept and went a few steps further
It’s all in the ball
Cursor control
Scoll control – now integrated into the ball, thanks to state-of-the-art twin laser sensors
Control
Media mode controls Microsoft Media Center and i-tunes
Pan/zoom mode controls web browsers, productivity software, photo-editing software and viewers, such as Internet Explorer, Office, Photoshop and Acrobat (list of supported applications in Appendix)
Comfort
The comfort that made the trackball famous, now ennhanced: slim design eliminates need for wrist rest
Slimblade design
Saves desktop space, looks great in any environment
* Based on NPD August 12mm Sales Dollars
April 21, 2017

20. SlimBlade™ Trackball Idea: Now, the ball does it all Key Features:
Multi-function ball lets you easily navigate through your music, pictures and documents using media or document view mode
Keep an eye on which application you are in and which function is being performed with the heads-up display on your monitor
With its low-profile shape, you’ll be able to use it comfortably for hours on end
The sleek stationary design optimizes your desktop space
Gain fingertip access to image and media controls
Control cursor and scrolling; volume, play/pause, stop, and next; zoom in/out, and pan, all with the ball
SlimBlade™ Trackball
K72327us $129.99
Available: 2/25/09
January 23, 2008

21. Packaging
Paper COI
January 23, 2008

22. Marketing Tools Hero Product:
In addition to the standard list of assets, the following tools will be available:
Impact Video: A video to help with sell-in/sell-through. Available 11/7
Microsite
Tutorials video

23. Slimblade Mouse with Nano receiver

24. US Region: Competitive Landscape
12MM Mice Dollar Sales by Price Band
Source: NPD 12MM 8/08

25. US Region: Competitive Landscape
Snapshot of $39.99 mice in the market today:
Microsoft Notebook Mouse 6000
Laser Sensor
Wireless
$39.99
Logitech V320
Laser Sensor
Wireless
$39.99
Targus AMW15US
Laser Sensor
Wireless
Rechargeable

26. US Region: Competitive Landscape
Snapshot of mice w/ nano receivers in the market today:
Ci95
Optical Sensor
Wireless
$39.99
$34.99 (2/1/09)
Logitech V450 Nano
Laser Sensor
Wireless
$49.99
Logitech V550 Nano
Laser Sensor
Wireless
Notebook attaching system
$59.99
Logitech VX Nano
Laser Sensor
Wireless
$69.99

27. Idea: The laser mouse that’s on the move
Key Features:
Plug-and-stay nano receiver is so small you plug it in once, and never have to worry about it again
Laser sensor gives you precise control on more surfaces and extends battery life
Thin profile design fits in your hand as well as your travel bag
4-way tilt scroll wheel
Laser sensor for tracking on more surfaces
Low-battery indicator
SlimBlade™ Mouse with Nano Receiver
K72334us $39.99
Available: 1/31/09
January 23, 2008

28. Packaging Traditional COI Nano Receiver shown outside of mouse
January 23, 2008

29. Why the Slimblade Mouse w/ Nano Receiver will be successful in the marketplace?
We dared to think differently to tackle consumer pain-points head-on with the Slimblade series
We distilled the best of Slimblade’s design elements with the latest technologies to develop the Slimblade Mouse w/ nano receiver
2.4 GHz plug and stay nano receiver
Easy to travel with, yet comfortable for everyday use
Tracks on more surfaces
Laser sensor for superior trackability and accuracy
Value Proposition for the consumer
Suggested Street Price of $39.99 makes this the most inexpensive laser mouse with nano receiver in the market
Smart : Thoughtful consumer insights + Simple : Layers of functionality
Mouse is tallest
element in bag! =
April 21, 2017

30. Ci10 Fit Wireless Laser Mouse

31. US Region: Competitive Landscape
12MM Mice Dollar Sales by Price Band
Source: NPD 12MM 8/08

32. US Region: Competitive Landscape
Snapshot of $29.99 mice in the market today:
Microsoft Optical Mouse 3000
Optical
Wireless
Bright Colors
Logitech V220
Optical
Wireless
Bright Colors
Targus PAWM10U
Optical
Wireless
Travel Pouch

33. Idea: Free yourself from the touchpad
It “Fits”
Your hand
Your pocket
Your lifestyle
Key Features:
Laser sensor works on more surfaces and conserves batteries
Receiver stows flush on the bottom of the mouse to fit easily in your bag
Contoured rubberized grips give you all day comfort
Six months of battery life on 2 AA alkaline batteries
Ci10 Fit
Wireless Notebook Laser Mouse
K72335us: $29.99
Available: 2/16/09
January 23, 2008

34. Packaging
Hybrid paper box / blister pack to enable consumers to feel shape of mouse in packaging
Receiver shown outside of mouse
January 23, 2008

35. Why will Ci10 be successful in the marketplace?
We dared to think differently to tackle consumer pain-points head-on with the Ci75
We applied everything we have learned in developing Ci10 Fit
Easy to travel with, yet comfortable for extended use
New shape with rubber grips for superior comfort
Tracks on more surfaces
Laser sensor for superior trackability and accuracy
Affordable
Suggested Street Price of $29.99 hits the sweet spot in mice price bands
Smart : Thoughtful consumer insights + Simple : Just what they need, nothing more
Mouse is tallest
element in bag! =
April 21, 2017

36. Ci70 Photosync Destop Set

37. US Region: Competitive Landscape
12MM Desktop Dollar Sales by Price Band
Source: NPD 12MM 8/08

38. US Region: Competitive Landscape
Snapshot of desktop sets $59 - $79 in the market today:
Cordless Desktop LX 310 Laser
$59.99
Laser Mouse
Wireless
Multimedia Keys
Microsoft Wireless Laser Desktop 6000
$79.99
Laser Mouse
Wireless
Multimedia Keys
Logitech Cordless Desktop LX 710 Laser
$79.99
Laser Mouse
Wireless
Multimedia Keys

39. Idea: The desktop that keeps you in sync
Key Features:
Download images from your digital camera, and sync your smartphone or MP3 player with the built-in mini USB cable or USB port
Wireless laser mouse tracks on almost any surface
Dedicated media keys & hot keys for instant access to applications, media controls and more
With a 35% smaller footprint, low-profile design and a sliding door the keyboard saves space and looks good doing it
Wireless mouse with removable receiver so you can take it with you
Set is ready to use out of the box—no pairing necessary
Ci70 Photosync Desktop Set
K64399us $69.99
Available: 2/11/09
January 23, 2008

40. Why will the Ci70 PhotoSync Desktop Set be successful in the marketplace?
Unique to other desktop sets in the market
40MM digital cameras projected to be sold in USA in 2008, up from 35MM in 2007*
Mini-USB cable simplifies photo-syncing process
Additional USB port on the keyboard for easy USB access
Laser mouse for superior trackability
Mouse receiver detachable for travelability
Value play: Ci10 ($29.99) + Ci70p keyboard ($49.99) = $79.98
Ci70 set SSP = $69.99
Source: Infotrends:
April 21, 2017

41. Packaging
Paper COI
January 23, 2008

42. Where do the new skus fit into the lineup?

43. Mobile Mice $34 & up
$79.99
Slimblade Presenter Media Mouse
$69.99
Slimblade™ Trackball Mouse
K72330US $49.99
Slimblade™ Bluetooth Presenter
Mouse
Ice Blue $49.99
Deep Blue $49.99
Slimblade Presenter Mouse
72269US $49.99
Si750m Wireless NB Laser
72271US $49.99
SI670m Bluetooth®
K $39.99
Slimblade Mouse with Nano Receiver
K72328US $34.99 effective 2/1/09
Ci95m Wireless Mouse with Nano
Receiver
72256US $39.99
Si650m Wireless Optical
$39.99
Pilot Mouse Laser Wireless
Mini
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

44. Mobile Mice $14 to $34.99
K72297US Grey/Orange $32.99
K72298US White/Silver $32.99
K72278USA Black $32.99
Ci75m Wireless Notebook Mouse
K $29.99
Ci10 “Fit” Wireless Laser Mouse
K72267US $29.99
Ci65m Wireless Notebook Mouse
K $24.99
PocketMouse™ Wireless Mini
K72266US $19.99
Ci25m Notebook Optical Mouse
K $19.99
PocketMouse™ Mini
K72114G $16.99
PocketMouse
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

45. Wireless Desktop Mice
72282USA Dark Wine
72286USA Piano Black
SlimBlade™ Media Mouse $49.99
72242
Wireless Pilot Laser $39.99
72275US Rouge
72300US Copper
Ci70 LE Wireless Mouse $29.99
72276US Titanium
72301US Matte Black
Ci70 Wireless Mouse $29.99
Is it the same model – just different color for the Pilot Mouse optical pro wls?
Are bringing the price down to $29.99.
Refresh for is 72129A? Specify the upgrades.
Design, color, material? More ergonomic, name of color, material – lead free? Battery indicator – mouse or receiver. Pkg and name – specify?
Are the other color variations living through or changing too?
-Check on placement .
New version $39 or $29?
K72258US $29.99
Ci60 Optical Wireless Mouse
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

46. Desktop Mice $14 - $29.99
72243 –72331USA $29.99
Si300 Laser 3 BTN
(Right Handed)
$24.99
Ci20 Optical Mouse 5B
USB
72326US $19.99
Ci73 Wired Optical Mouse – Black
(B2B Packaging)
72121F $21.99
MIAB Elite, USB
$16.99
MIAB Optical II, USB
72123F $16.99
MIAB Optical Elite, USB
$13.99
ValuMouse®
Opt USB/PS2 Mouse
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

47. Desktops Mouse & Keyboard Combinations
K72329US $129.99
Slimblade Bluetooth Notebook Set
K72279US $129.99
Slimblade Media Notebook Set 3pc.
(Keyboard, Keypad, Mouse )
K72318US $99.99
Slimblade Notebook Set 2pc.
(Keyboard, Mouse)
K64392US – Matte Black
Ci70 Wireless Desktop Set $79.99
K64399US $69.99
Ci70 Photosync Desktop Set
K64390US $69.99
PilotBoard Laser Wireless Desktop Set
K72320US $19.99
SlimBlade Media Remote
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

48. Keyboards Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
K64396US $49.99
Ci70 Keyboard w/USB Ports
(wired)
K64397US $29.99
Ci73 Wired Keyboard
K PC $29.99
K Mac $39.99
SlimType Keyboard
K64338B – Black $19.99
K64331A – White $19.99
Comfort Type USB Keyboard
(K64338B - includes PS2)
K $17.99
Keyboard for Life
(USB/PS2)
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

49. Keypads Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
K72273US $59.99
Wls Notebook Keypad/Calculator and Mouse Set
K $39.99
Pocket Keypad Calculator
K72274US $29.99
Notebook Keypad/Calculator with USB Hub
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

50. Presenters Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
K33374USA $59.99
Wireless Presenter with Laser Pointer
K $49.99
Wireless Presenter
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

51. Trackballs Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
Slimblade Trackball
K $99.99
Expert Mouse ®
K64327F $29.99
Orbit Optical Trackball
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

52. Marketing Tools Competitive Landscape New Products Flyer Spec sheets
Flash demos
Website updates
Promotional plans
PR Plan

53. What we need from you… Retail
Present story on the latest in Ci, Slimblade and trackballs
Aggressively displace Targus and other 2nd-tier brands at all accounts by leveraging competitive grid
Gain new placement and improve presence at OPSS and 2nd tier retail
Power center wins: Micro Center, BBY power section, Staples Best Tech – building the momentum

54. What we need from you… B2B
Validate market opportunity for new products
Identifying competitive products
Sizing market opportunity
Create plan to launch validated new products and re-invigorate tried and true B2B products via the VAR program and with DMRs
Power center wins: Micro Center, BBY power section, Staples Best Tech – building the momentum

55. Questions?

56. Appendix

57. List of supported Slimblade Trackball Applications
Photoshop
Lightroom
Photoshop Elements
Aperture
iPhoto
Numbers
Pages
Preview
Acrobat
Acrobat Reader
Excel
Excel for Mac 2004/2008
Word
Word for Mac 2004/2008
Internet Explorer
Firefox
Safari
iTunes
Media Player