category selling story 11/29/2012 neuro key account team 2013

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CATEGORY SELLING STORY11/29/2012 Neuro Key Account Team2013

1Functional Category & Product

Consumer Insights & Marketing


Xtra Mart 2013Agenda


Company Update3NEUROS PHILOSOPHY: WHAT WE STAND FORPremium Functional Ingredients4Our 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 offeringsNeuro 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...NEURO: TRUE FUNCTIONThe 24/7 Solution5Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.

Put growth in bullets5

Functional Category & Product61970s1980s1990s2000s2010sRefreshmentLow CalorieBenefitHealthyFunctional

Evolution of the Functional CategoryTHE OLD CONSUMER(static or shrinking numbers)THE NEW CONSUMER(high growth demographic)Seeks refreshmentSeeks flavor over functionDoesnt think about negative health affectsSeeks the lowest price possible

Demands noticeable functional benefitDemands Low CalorieDemands positive, AND no negative health affectsSeeks Premium productsWilling to pay more for products that meet these criteriaThe Consumer driven evolution of what a beverage should deliver7Provides a true benefit

Low Calorie


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.8Consumer Usage Occasions9

Each Neuro SKU delivers on specific needs across multiple consumer segments

Consumer Insights & Marketing1011Overall-All SKU Brand LoyaltyAmong regular users, Neuros brand loyalty is competitive with much older, more established brandsNet Promoter Score; Q1 2012 Net Promoter Score is the national standard to measure brand loyalty. It is unprecedented to have brand loyalty this high, especially with a brand as young as Neuro1112SKU Specific Brand LoyaltyNeuro Sonics brand loyalty is near or better than like SKUs of many older, more established brands Net Promoter Score; Q1 2012 2012 National Media Campaign$3.5M integrated, multi-platform plan1.5B impressions

National Digital, Mobile, Print, Social and PR outletsRegional OOH Billboard/Transit and RadioFocus: Neuro Brand, Neuro Sonic, Neuro Bliss

Target Consumer

Primary Age: 18-34ySecondary: 15-18y and 34-49y50/50 Male/FemaleMiddle income and upHealth Conscious

To increase Neuros awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31st, 201213

2012 National Media CampaignIntegrated National Campaign with a continuous focus on digital to target consumers 14Digital AdsVideo in Video

Greystripe Landing Page

Video Lightbox

Multiple Digital ad platforms deliver optimized targeted impressions 15Screen to Store: Product Ad With Store Locator Consumer Experience ProgressionProduct Media Product Locator Interactive Digital Ads that drive consumers directly to the point of purchase

16National 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 AdsRolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads1718Permanent Merchandise & Point of SaleAvailable profit drivers:Metal RacksCardboard DisplaysPallet WrapPallet HeaderGlide RacksPostersStaticsPush/Pull SignsShelf StripsPricing Stickers

POS Placement increases the profit story for every retailer:

Ties the retailer into Neuros multi-million dollar marketing campaignCalls out a high profit product and its pricing to consumersMax number of smart placements = Max retailer profit

Point of SaleAvailable profit drivers:RacksPrice LabelsGeneric StaticPosterShelf StripPallet WrapPush/PullPallet HeaderPole DisplayGlide Rail Stickers

POS Placement increases the profit story for every retailer:

Ties the retailer into Neuros multi-million dollar marketing campaignCalls out a high profit product and its pricing to consumersMax number of smart placements = Max retailer profit1920Account S & Neuro scan sales; Q4/2011-mid May 2012Neuro renews the category profit in a top national convenience chainSales Share of BrandDirect 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 beverageReformat20

201020112012NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12- YTD Neuro has gained 25pts of ACVNeuros Distribution in the C-store channel

201020112012NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12- Neuro is up 238% YTD in dollars, or +$16MNeuro continues their Triple Digit Growth

- neuros 4W sales are about to surpass Sobe Life Water & Glaceau Vitamin Water ZeroNIELSEN TOTAL US CSTORE DATA ENDING 7/14/12Neuros continued growth is taking over notable brands with significant presence

- 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% UnitsFunctional brands are fueling growth (Neuro)

- neuros dollars per SKU surpasses all but Glaceau Vitamin WaterNIELSEN TOTAL US CSTORE DATA ENDING 7/14/12Neuros SKUs surpass many other enhanced products 26Over last two years, Neuro has partnered with many C-Store Retailers across the country

Current National C-Store Partners

2013 Trade Marketing Initiatives 27

Neuros 2013 trade marketing initiatives will increase retail activation and drive consumer growth through anchor activations, functional focuses, and partner initiatives with our key distributors.

Neuro & Xtra Mart -2013282013 SMALL FORMAT Promotional Frequency/PricingOption #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%29Eye to Arm COLDPricing is subject to change at the sole discretion of NeuroOption #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 COLDEye to Arm COLDRack attack, owning the perimeterAffinityXtra Mart 2013 Pricing & Promo Calendar2013JanuaryFebruaryMarchAprilMayJuneJulyAugustSept.OctNov.Dec.Suggested Retail$2.69 or 2/$5 2/$4$2.69 or 2/$5 $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 $2.69 or 2/$5 $2.69 or 2/$5 EDLP $20.00$18.00$20.00$20.00$18.00$20.00$18.00$20.00$18.00$20.00$20.00$20.00Improve Pictures29Neuro 2013 Example Functional Cold Set30


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 trafficXtra Mart & Neuro Marketing Opportunities

32Light 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 successProfit driving merchandising agreementMultiple, profitable points of consumer interceptIntegrated marketing programs, starting with point of sale


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