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Online Labeling

and Marketing

5 June 2017

Agenda

• Introductions

• Part 1: Evolution of Retail

• Part 2: Key Trends

• Part 3: Interactive Print

• Part 4: Synchronization

• Discussion

Mike GradyGlobal Commercial Integration Manager

E: michael.grady@sgsco.com

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.3

Evolution of Retail

1996

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CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.5

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.6

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.7

1996 – Amazon was Two Years Old

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Americans with Internet access spent fewer

than 30 minutes a month surfing the Web

Technology Advancement

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Amazon was 2 years old.

1998 2004 2007

Surprise !

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2015

Technology Increasingly Built into Our Lives

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Surprise ?

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Kroger ClickList

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Walmart

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The first touchpoint in every person’s pocket

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The Evolution of Retail

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Fundamental Shift in Thinking

From Point of Sale to Moment of Sale™

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Point of Sale

Where the product is

available

Dictated by

the retailer

Moment of Sale TM

How the consumer is

shopping

Consumer’s needs

come first

Package = Media = Content

The Pack is Always Present & Driving Moments of Sale

Package

outdoor

eCommerce

retailer websites

social

media

brand

website

packaging

brand apps

events magazines

POS / in-store

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.18

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.19

Key Trends

Engagement | Buy Now | Personalization | Transparency

Engagement

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87% of Millennials want more!

Harris Poll: survey was conducted within the United States by Harris Poll on behalf of Digimarc from October 1-5, 2015 among 2,019 adults ages 18 and older

Buy Now

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3 Ways to Shop Target Catalogs1. Shop everything in this catalog at

Target.com/Homestyle2. Search for any product on Target.com

using the item number after the price3. Shazam any page to shop instantly

September 2015 2016 Deployments in Catalogs

Personalization

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Transparency

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https://www.yahoo.com/beauty/cvs-says-no-beauty-products-chemicals-174756187.html

Transparency

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CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.25

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.26

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.27

The Value of Transparency

4 in 10 would switch

Nearly 4 in 10 consumers say they would switch to

a new brand from a current preferred brand in favor

of increased product transparency, according to a

recent study from Label Insight.

73% would pay more

Moreover, 73% of consumers would be willing to

pay more for a product that offers complete

transparency, the survey revealed.

http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/11/How_Unilever_is_embracing_tran.aspx?ID=%7BB3C5DB43-CB5F-4002-A8A4-5A7BA786B1DC%7D

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.28

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.29

Interactive Print

The rise of PHY-GITAL

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What can an Interactive Pack do?

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CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.32

Chance to Win

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Brands can utilize technology to promote products and services in innovative ways

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.34https://techcrunch.com/2017/05/10/snapchat-user-count/

Snap to Store

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.35https://techcrunch.com/2017/05/10/snapchat-user-count/

Make a Difference with SelfiesFor each selfie shared with the filter, Wendy’s will

donated $5 toward finding a loving and caring family

for every child in foster care.

Additional Visitors 42,000

Within a Week

Catch the NoodleWhen it came time to announce recipe change, KHC wanted to be front in center so

consumer base was aware of the improvements. Snapchat and Kraft Macaroni &

Cheese partnered to create a playful Lens to take Snapchatters back to their childhood.

Say cheese!

Brand Favorability +5pt increase

Purchase Intent 13% Lift

From brand as Advertiser to brand as Entertainer

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Source: http://www.marketingdive.com/news/pepsi-flaunts-snapcodes-in-summer-giveaways/442609/

http://www.prnewswire.com/news-releases/pepsi-turns-up-the-heat-this-summer-with-release-of-limited-edition-pepsi-fire-300456129.html

From brand as Advertiser to brand as Entertainer

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.37

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.38

Brand as a Part of History

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Synchronization

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CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.42

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.43

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.44

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.45

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.46

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.47

We’ve learned that a product

is photographed an average of 8 times

with as many different points of view.

The 3D/CGI process is the better way.

Retailers Need Content Prior to Shelf

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Integration for Digital Product Imagery

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Prepress + Wireframe

Industry Standard Images: Traditional Product Pack Shots

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Product facings for e-commerce and

planogram applications

3 High Resolution Angled images for

e-commerce and marketing applications

Stand-alone imagery of NFP and ingredients

Data Sourced From :

MFR Direct Feeds, GDSN and

Legacy Systems

Scannable barcode images

for field use and product scoring

Comprehensive Need for Content

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.51

Standard Hero Optimized

Target Destination Matters

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Sales Kits

& Presentations

eCommerce,

Print & Omni-channel

Optimized for

Omni-channel

Public Domain

From Standardized to Branded

Informed Design

for the Way People Shop

Internal

Use

Standard vs Photo-realistic

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Standard Photo-realistic

Source: *Omniture Clickstream from Tesco.com (2.4 million shoppers)

AVOID reading

VISUALLY SCAN images

IGNORE everything else

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Key Product Information

Based on How Consumer is Shopping

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.55

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.56

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.57

(OPS™) Close In (OPS™) Brand OptimizedCurrent Web Image

Enhanced eComm Content

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Special Offers

Promotional Images

Video Clips

Prepared food images

In-Use Images

Relevant Size Images

Transitional Images

Recipes

58

Transition Images – Package Changes

59 CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.

Relative Size Imagery

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Optimized Product Content

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Ab

ove

fo

ld

Min. 6 high

quality images Direct link to

other SKUs

Brand name

in title

Expanded product

description

Interactive/

inspirational content

Developing A+ product contentB

elo

w f

old

Optimizing for search

Amazon ranks search results by:

1. Relevance

2. Product sales performance

Optimize keywords on a regular

basis to achieve page 1 ranking

• Monitor related keywords that are

popular/trending

• Infuse these keywords in product

descriptions and page HTML

Enabling Distribution for the Digital Shelf

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.62

CONFIDENTIAL 2017 sgsco Information contained here in is confidential and is to be treated confidentially. Recipient will not directly or indirectly duplicate or disclose such information without prior written consent of sgsco.63

Discussion

Nutrition Label Reform

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An effort to help families make

the healthy choice the easy choice

FDA aims to influence

The Moment of Sale TM

Challenges & Opportunities

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Nutrition Label Reform

Globalization Centralization Synchronization

Thank you

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