Consumer Product Retailing & Category Management Presented by: Dan Jones

JOHN FRIEDA

Career Experience McNeil Consumer Products Division of Johnson & Johnson Inc. Territory Manager Sales Trainer District Manager

Career Experience Helene Curtis Industries Inc. Division of Unilever Corp. National Account Manager Regional Retail Sales Manager West Coast Director of Customer Business

Career Experience Marketing Specialists Inc.. Specialty Food Regional Business Manager

Career Experience John Frieda Hair Care Inc. Western Regional Sales Manager JOHN FRIEDA

Retail Sales & Marketing Strategy “Category Management”

The 4 P’s Still Work! PRICE – Hi/ Low or EDLP PROMOTION – Feature Ads, Displays PLACE – Shelf Placement PRODUCT– Gain New Item Distribution All Impact Brand Sales & Performance

Quadrant Analysis Winners - % + % LosersOpportunity Volume Retailer's Fair Share of Market (% ACV)

JOHN FRIEDA london london € paris € new york

Safeway Corporate Market Share Quadrant John Frieda & Physique are the only clear Winners in the category. Source: AC Nielsen “Account Planner” 52 Weeks Ending 1/26/02

John Frieda US Sales Estimated to Continue at a Growth Rate of 22%! Dollar Sales (MM) Dollar Sales (MM) Source: IRI; Total US FDM, 52 Wks Ending Sept. 2001

JOHN FRIEDA is a major contributor to the positive growth Dollars!! Major Brands are showing negative growth. Source: AC Nielsen “Account Planner” 52 Weeks Ending 1/26/02

Category / Brand Development Indexes Safeway Comparative Market - Food Source: IRI

Hair Care Section Before After

New Alpha Hydrox “…still the one that works…”

Anti-Aging Skin Care is the Fastest Growing Segment in the Total Skin Care Category +23.4% change -.3% change +2.2% change +5.3% change -.3% change -.3% Change Source: IRI 26 week US Food, Drug, & Mass – period ending 12/26/04 Skin Care Category % Share and (+/- ) % Change -.3% Change

New Alpha Hydrox Will Outsell the Category Average & Grow Your Skin Care Category Source: IRI US Drug 26 week- period ending- 12/26/04 Note: New Alpha Hydrox Sales per SKU based on historical sales data and & current category trends

Annual Sales & Profits Projection

Annual Sales & Marketing Funds Projected

Financial Impact Alpha Hydrox Nourishing Cleanser Vitamin A & E Micro beads & AHA Soap-free, fragrance-free Gently & effectively removes all makeup Rinses Clean Vitamins A & E micro beads to cleanse and nourish Specially formulated to maximize the effectiveness of the entire Alpha Hydrox skincare line by prepping the skin with a proper pH level Supported by: Aggressive Marketing Campaign Upscale Eye-Catching Packaging Unique Formulas for Specific Needs Strong Impulse Sales & Profits Strong $ Profits with High GMROI

New Alpha Hydrox Introductory Success! TOP NATIONAL CUSTOMERS IN 1 ST 4 MONTHS OF INTRODUCTION: Walgreen’s End Display with $3.00 Off Promotional Offer

Keys of Effective Retail Marketing Know Your Retail Customer – business model, goals, key business drivers, marketing plan (4 P’s), merchandising process Practice Effective Presentation & Communication Skills Know Your Products Features/ Benefits > Important to Retailer Understand “Fact Based” Category Management & Analysis Know Your Product’s Features & Benefits > Key to Retailer Plan Your Business & Work Your Plan Prioritize Your Efforts for Successful Results!

Speaking of Successful Results … “ A Prediction”

2006 Civil War Prediction … VS