IntroducingA national volume building program driven by guaranteed displays

Instant Combo Savings®

2011

Member of

Introducing … Instant Combo Savings®

• Guaranteed displays pre-authorized by retailer (75%+ audited compliance)• Customary TPRs not required• Program announced to consumers via:

– Retailer weekly circular, retailer website, POS at shelf and on displays – Full page FSI, ICS Facebook page, ICS blog

Performance Guarantee or your money back!

1

A national volume building program driven by guaranteed displays

ICS drives incremental volume through merchandising support activated by a partnership between CPG brands and retailers’ complementary, non-competing Private Label brands

Promotional Comparison

2

Sampling

FSI+

TPR

TPR

Catalina

FSIIn-Store Coupons

In-Store Media

Cost/UnitMovedHigh

DisplayHigh

Cost /UnitMoved

Low

DisplayLowSize of Circle = Volume

3

ICS delivers significant savings

• Your brand partnered with a complementary, non-competing Private Label brand

• FREE offer*

• Shoppers redeem each offer individually

• Savings delivered instantly at checkout*Assumes 25 – 35% savings for each offer

ICS drives feature support & consumer attention

Weekly circular4

• Delivers high value savings to the consumer

• 9-12 offers from multiple National brands

• Category exclusivity

• A Bonus savings program attracts additional attention by creating a higher savings potential

• Shoppers receive Bonus Savings when 3 or more offers are redeemed. Savings are doubled with the bonus

ICS supports the program with a full page FSI

5

• Runs in each retailer’s key markets

• Drops on the Sunday closest to the start of the retailer’s ad week

ICS guarantees high levels of display compliance• Executed through partnership displays• Supported by the ICS Merchandising Network

– Pre-call– Display building & signage placement– Replenishment

6

Multi-shelf endcap Floor display Refrigerated display Frozen display

ICS guarantees POS placement• All stores receive signage for both Your Brand and Private Label• Signage will be placed on display and at the shelf location for each brand

7

Shelf/soda department Shelf/chip department

Category Exclusivity/Timing

8

• CPG brands receive category exclusivity for both National Brand and Private Label competitors

• The program runs across the retailer network once during a 4 week cycle. Each retailer’s program is 1 week in duration, tied to the retailer’s ad week

Option: Corporate Event

9

ICS Corporate Events will drive 100% feature support and display compliance of 75%+ for each participating SKU…more than twice the level of typical FSI Corporate Campaigns*

• An ICS Corporate Event is dedicated to your company

- Choose your theme - Customize your bonus/overlay- Minimum 6 offers

• Pricing upon request

* Source: March – May 2010, Safeway

ICS is a turnkey program

• ICS Retailer Network is pre-authorized for displays and features ads• ICS:

– Develops and secures approval of combo offers– Produces all program elements– Places FSI– Coordinates program details with your National Account Managers

Projects volume lift Informs Category Managers/helps close incremental sale

• ICS Merchandising Network sets displays and POS• ICS prepares a post promotion evaluation (including performance

guarantee results)

10

11

Letters of Pre-Authorization

Rollout Timetable

12

Phase Timing ICS Retailer Network Stores

1 2008-2009 2 Retailer Test COMPLETED

2 Cycle 11 (2010) Stop & Shop, Giant Carlisle, Giant Landover, Martin’s

COMPLETED

3 (2011) Cycles 3 - 6 FoodDrug

1,6954,700

4 (2011) Cycles 7 - 13 FoodDrugMass

2,5004,7001,300

5 (2012) 2012 FoodDrug Mass

13,300+18,800+2,800+

13

ICS 2011 Cycles

ICS Retailer Network

14

Ahold 750Roundy’s 154Giant Eagle 222Harris-Teeter 199SAVE MART/Lucky 245Pathmark 125Rite Aid 4700

Store Count:

Food Retailers*Program Investment

Media/Distribution FSI (32mm)POSCircular (97.4mm)Store Participation and Post Promotion Evaluation $ 49

Merchandising/ProductionMerchandising servicesPrint ProductionShipping $16

Total Cost Per Store $65

Note: 1. Grocery, Beverage or HBC products may incur an additional cost for corrugate display units or pallets, depending on the retailer2. FSI runs Sunday prior to retailer’s ad week for their first 2 programs. Coverage is all markets where the retailer has 10% or more ACV share plus a minimum of 10 stores3. Bonus offer does not run in all retailers. Add 1% to the base redemption rate for retailers participating with a bonus

* Rite Aid pricing will be quoted separately

Estimating Range – 5% to 9% for combo offers requiring multiple purchases of your product; 15% to 19% when only one package of your product is purchased

Partnership Offer – CPG will be billed for face value of partnership offer plus 5¢ handling

Bonus Offer – All participating CPG brands share in the funding of the bonus offer – face value plus 5¢ handling

Clearing – Retailer submits electronic redemption report directly to CPG or to CPG’s redemption agent

Participation

Performance GuaranteeIf the program does not reach the agreed upon targets, ICS will rebate a portion of Media & Distribution costs

Redemption

Effective 1/1/11

15

Performance Guarantee

16

Example: If volume lift is less than 300%, you will receive a rebate on media/distribution costs as follows:

Volume lift % Rebate %201 – 300 25100 – 200 50

0 – 99 75

• Based on volume, merchandising or profitability goals established prior to program implementation

• Goals can be volume lift, year over year volume growth, display compliance, promotioncost/unit moved, etc.

• Performance rebate determined by syndicated data, retailer data or store audits

Discount Cost/store

1st combo offer - $49.00

2nd combo offer 25% $36.75

3rd combo offer 35% $31.85

4th + combo offer 45% $26.95

Discounts are based on the number of participations within one program

ICS Multiple Participation Discount

17

ICS Recap

18

Announced with feature ad & FSI

Broad consumer reach builds program awareness. Multiple FREE offers engages Shoppers

Pre-Authorized Displays 75%+ compliance/significantly higher than most programs

Category Exclusivity Blocks both National Brand and Private Label competitors

Partner with Private Label Retailers have vested interest in program’s success

Strong ROI Promoting at everyday price protects brand equity. Strong promotion lift drives both 1 week incremental volume & permanent gains in base volume

Turnkey Requires less of your time

ICS Merchandising Network

Set-up for each retailer based on their in-store merchandising practices

Performance Guarantee If we don’t reach the goals established for your brand, we will rebate you a portion of the media/distribution cost.

19

• Discuss details related to your participation• Identify participating brands/packages• Confirm category availability• Identify related item categories

• Review ICS Master Services Agreement

Next Steps

IntroducingA national volume building program driven by guaranteed displays

Instant Combo Savings®

2011

Member of Nancy J. LucasInstant Combo SavingsT (609) 714-9206 or T (415) 788-3838 ext. 111C (609) 731-3449www.InstantComboSavings.com

Case Study: Ahold, October, 2010 - ResultsProgram Dates: Giant Carlisle/Martin’s 10/17 - 10/23 Giant Landover/Stop & Shop 10/22 - 10/28

Display Compliance: 75.3% average for 8 combo offers

Pricing: 5 out of 8 CPG Brands elected to run at everyday price

Volume lift: Ranging from less than 100% to 370% and higher. Key variablesdetermining lift were presence of a TPR during the promotion week or the week before,out of stock conditions, strength of the combo offer, size of the Brand and competitive activity

Redemption as a % of Units Moved: 6.7% for combo offers requiring multiple purchases of CPG product 17.0% for combo offer requiring only 1 purchase of CPG product

21

Case Study: Ahold, October, 2010 - FSIs

22

Case Study: Ahold, October, 2010 - Weekly Circular

23

10/22-10/2810/17-10/23

Case Study: Ahold, October, 2010 - In-store Displays

24

Case Study: Ahold, October, 2010 - In-store Displays cont …

25

Case Study: Ahold, October, 2010 – POS cont ...

26

Stanchion Bib tag Display card