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CATEGORY SELLING STORY 11/29/2012 Neuro Key Account Team 2013.

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Presentation on theme: "CATEGORY SELLING STORY 11/29/2012 Neuro Key Account Team 2013."— Presentation transcript:

1 CATEGORY SELLING STORY 11/29/2012 Neuro Key Account Team 2013

2 Functional Category & Product Consumer Insights & Marketing Customers Xtra Mart 2013 Agenda 2

3 Company Update 3

4 NEURO’S PHILOSOPHY: WHAT WE STAND FOR Premium Functional Ingredients 4 Our researchers and scientists continue to study to ensure each Neuro has the optimal levels and mix of ingredients to deliver the functional promise on the bottle. The key ingredient and dosage levels are backed by published, third-party research proving the benefits delivered at the levels contained in each Neuro. We are uncompromising in our development and have not cost-contained or reduced the ingredient levels in any way. Everything from our ingredient sourcing to our ambient fill process is designed to deliver optimal benefit in each Neuro Neuro delivers true function -ingredient quality and dosage levels high enough to work--setting it apart from other offerings Neuro is designed with real ingredients at real levels to deliver real results for whatever our consumers’ passions and needs might be at any time of day...

5 NEURO: TRUE FUNCTION The 24/7 Solution 5 Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.

6 Functional Category & Product 6

7 1970s 1980s 1990s 2000s2010s Refreshment Low Calorie Benefit Healthy Functional Evolution of the Functional Category THE OLD CONSUMER (static or shrinking numbers) THE NEW CONSUMER (high growth demographic) Seeks refreshment Seeks flavor over function Doesn’t think about negative health affects Seeks the lowest price possible Demands noticeable functional benefit Demands Low Calorie Demands positive, AND no negative health affects Seeks Premium products Willing to pay more for products that meet these criteria The Consumer driven evolution of what a beverage should deliver 7

8 1.Provides a true benefit 2.Low Calorie 3.Healthy Evolution of the Functional Category The Functional Category contains three essential elements: Neuro is leading the formation of the true Functional Beverage Category as the only system of beverages with national distribution that delivers all there elements. 8

9 Consumer Usage Occasions 9 Each Neuro SKU delivers on specific needs across multiple consumer segments

10 Consumer Insights & Marketing 10

11 11 Overall-All SKU Brand Loyalty Among regular users, Neuro’s brand loyalty is competitive with much older, more established brands Net Promoter Score; Q1 2012

12 12 SKU Specific Brand Loyalty Neuro Sonic’s brand loyalty is near or better than like SKU’s of many older, more established brands Net Promoter Score; Q1 2012

13 2012 National Media Campaign $3.5M integrated, multi-platform plan 1.5B impressions National Digital, Mobile, Print, Social and PR outlets Regional OOH Billboard/Transit and Radio Focus: Neuro Brand, Neuro Sonic, Neuro Bliss Target Consumer Primary Age: 18-34y Secondary: 15-18y and 34-49y 50/50 Male/Female Middle income and up Health Conscious To increase Neuro’s awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31 st, 2012 13

14 2012 National Media Campaign Integrated National Campaign with a continuous focus on digital to target consumers 14

15 Digital Ads Video in Video Greystripe Landing Page Video Lightbox Multiple Digital ad platforms deliver optimized targeted impressions 15

16 Screen to Store: Product Ad With Store Locator Consumer Experience Progression Product Media Product Locator Interactive Digital Ads that drive consumers directly to the point of purchase 16

17 National Print Ads-Neuro Sonic & Neuro Bliss Print ads to targeted demographics reaching over 60 million of readers. Publications specifically selected for demographic and high rate of beverage purchases from ads In-Style Magazine July/August/September. Alternating Bliss and Sonic Ads Rolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads 17

18 18 Permanent Merchandise & Point of Sale Available profit drivers: Metal Racks Cardboard Displays Pallet Wrap Pallet Header Glide Racks Posters Statics Push/Pull Signs Shelf Strips Pricing Stickers POS Placement increases the profit story for every retailer: Ties the retailer into Neuro’s multi-million dollar marketing campaign Calls out a high profit product and its pricing to consumers Max number of smart placements = Max retailer profit

19 Point of Sale Available profit drivers: Racks Price Labels Generic Static Poster Shelf Strip Pallet Wrap Push/Pull Pallet Header Pole Display Glide Rail Stickers POS Placement increases the profit story for every retailer: Ties the retailer into Neuro’s multi-million dollar marketing campaign Calls out a high profit product and its pricing to consumers Max number of smart placements = Max retailer profit 19

20 20 Account S & Neuro scan sales; Q4/2011-mid May 2012 Neuro renews the category profit in a top national convenience chain Sales Share of Brand Direct quote from a national c-store chain category manager: “Neuro was the second best performing new brand (via sales $$’s) to launch via our innovation section of new entries in our company history.” C-Store Sales Account “S” Data In the first 7 months in distribution this chain sold 670,150 units in 210 days 3,191/Ave of 900 stores =3.55/5 0.71 units per store per day per SKU $1,693,828 ($’s)/670,150 (Units) = $2.53 On average Neuro generates $1.00 more per transaction then your typical single serve n/a beverage

21 2010 2011 2012 NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12 - YTD Neuro has gained 25pts of ACV Neuro’s Distribution in the C-store channel

22 2010 2011 2012 NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12 - Neuro is up 238% YTD in dollars, or +$16M Neuro continues their Triple Digit Growth

23 - neuro’s 4W sales are about to surpass Sobe Life Water & Glaceau Vitamin Water Zero NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12 Neuro’s continued growth is taking over notable brands with significant presence

24 - Triple digit growth in truly functional brands, while enhanced waters are flat to declining NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12 +2%* (+$1.7M) -7% (-$1.2M) -9% (-$2.1M) +239% (+9.0M) +300% (+5.9M) +169% (+1.1M) * 0% Units Functional brands are fueling growth (Neuro)

25 - neuro’s dollars per SKU surpasses all but Glaceau Vitamin Water NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12 Neuro’s SKUs surpass many other enhanced products

26 26 Over last two years, Neuro has partnered with many C-Store Retailers across the country Current National C-Store Partners

27 2013 Trade Marketing Initiatives 27 Neuro’s 2013 trade marketing initiatives will increase retail activation and drive consumer growth through anchor activations, functional focuses, and partner initiatives with our key distributors.

28 Neuro & Xtra Mart -2013 28

29 2013 SMALL FORMAT Promotional Frequency/Pricing Option #1 Calendar-$20/case, Max SRP: $2.69 plus 4 month long feature events at $18/case, MSRP: 2/$4 *WholesaleMonthsEDLP DiscountEDLP NetUnits / CaseUnit CostMSRPPenny ProfitMargin $22.508$2.50$20.0012$1.67$2.69$1.0238% $22.504$4.50$18.0012$1.50$2.00$0.5025% 29 Eye to Arm COLD Pricing is subject to change at the sole discretion of Neuro Option #2 Calendar-$19.25/case, Max SRP: 2/$5 plus 4 month long feature events at $18/case, MSRP: 2/$4 *WholesaleMonthsEDLP DiscountEDLP NetUnits / CaseUnit CostMSRPPenny ProfitMargin $22.508$3.25$19.2512$1.60$2.69$1.0940% $22.504$4.50$18.0012$1.50$2.00$0.5025% Eye to Arm COLD Rack attack, owning the perimeter Affinity Xtra Mart 2013 Pricing & Promo Calendar 2013JanuaryFebruaryMarchAprilMayJuneJulyAugustSept.OctNov.Dec. Suggested Retail $2.69 or 2/$5 2/$4 $2.69 or 2/$5 2/$4 $2.69 or 2/$5 2/$4 $2.69 or 2/$5 2/$4 $2.69 or 2/$5 EDLP $20.00$18.00$20.00 $18.00$20.00$18.00$20.00$18.00$20.00

30 Neuro 2013 Example Functional Cold Set 30

31 OTHER MARKETING OPPORTUNITIES Opportunities include: Consumer Engagement/ Product Sampling Social Media Programming ( Facebook Free Stuff ) Coupon program (digital & print) Xtra Email Club Xtra Mart and Neuro Giving Back Charity Program Neuro will invest in marketing programs to drive awareness and store traffic Xtra Mart & Neuro Marketing Opportunities

32 32 Light It Up Neuro is the leading entry in the consumer driven creation of the truly functional category. Neuro delivers national state-of-the-art media and digital marketing programs that grow the consumer base and drive partners’ business through integrated trade programs and geo-targeting of campaigns around store bases. Neuro is renewing the profit story in the enhanced and functional beverage sets through incremental per unit profits. Premium Price point + multiple consumer purchases = more profit dollars Neuro delivers consumers demands of true function, low calorie, and healthy. Light up your profit story with the right components in place: Set six SKUs for success Profit driving merchandising agreement Multiple, profitable points of consumer intercept Integrated marketing programs, starting with point of sale


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