neuro’s marketing investment will increase nearly 50% in 2013

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NEURO’S MARKETING INVESTMENT WILL INCREASE NEARLY 50% IN 2013

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NEURO’S MARKETING INVESTMENT WILL INCREASE NEARLY 50% IN 2013

Neuro Marketing Investment• We will increase neuro’s Brand Awareness to drive trial and repeat

which will help achieve double digit increases in sales volume

• How?– Aligning ourselves with culturally relevant properties– Integrating into the world of fashion, art and music– Sampling consumers with full bottles in “moment of need”– Planning to purchase more media more effectively– Producing neuro “experiences” to showcase our brand– Building our social media platforms– Supporting local activations – Reformulating key SKUs through consumer research– Delivering key insights into the category– Continuing to upgrade our staff – Doubling our Field Staff – Increasing support of key distributors

2013 Neuro Calendar – General

2013 Neuro Calendar – Anchors

*in development– not final

Legendary star and philanthropist, Elton John, hosts the hottest Academy Awards party for the hottest stars in movies, television and music while raising money for the Elton John Aids Foundation.neuro will again host the star-studded event and neuro will donate $0.xx per bottle sold to EJAF.

WHAT

CONSUMER/ DISTRIBUTOR

Giveaway/Incentive: Trip to EJ Academy Awards Party“neuro gives you a trip to light it up with the stars in Hollywood”

Movie tie-in by attending a Hollywood Movie Premier and Party. Potential Film is Runner, Runner, a drama set in the world of high-stakes gambling, starringBen Affleckand Justin Timberlake.

Giveaway/Incentive: Trip to Hollywood at attend a Movie Premier, walk the red carpet and attend the after party courtesy of neuro

- IPADs- HULU Plus/Movie passes- POS

- TVs - neuro $0.xx/bottle donation to EJAF - POS

RETAIL SUPPORT

Concert Tour tie-in or venue partnership in development to showcase newer, up & coming bands or artists.More detailssoon.

Giveaway/Incentive: neuro travel pass to see the newest music LIVE and up close

- Apple Shuffles- iTunes- POS

TRI – 1: Consumer/Retail• JAN-FEB – neuroTRIM focus

– EJAF Academy Awards Viewing Party-Hollywood• Distributor incentive locked• Consumer/Retail Contest confirmation w/o 11/19

– Retail Displays communicate neuroTRIM benefits• Control your appetite and eat less -

a satisfying portion of fiber– Usage Occasion Sampling

• Full Bottle• IE: Health Clubs, Boot Camps,

Non-Traditional corp Lunch or Snack Settings

– Local support of neuro integration intoculturally relevant events with themusic/fashion/art scenes

– Digital Strategy• Align all neuro social media platforms

TRI – 1: Consumer/Retail

• MAR-APRIL – neuroSLEEP focus – Donate $0.10/bottle to EJAF research– Retail Displays will communicate neuroSLEEP benefits:

• Sleep well so you can recharge | melatonin mixed magnesium

• Include donation messaging– Function and Usage Occasion Sampling will be local

decision• Full Bottle• BLISS/SONIC/PASSION

– Consumer Event / “stunt”• Garner Local and National attention• Spread though Social platforms

– Digital Strategy• Viral content of consumer “stunt”• On-going support fully integrated platforms

Marketing Update

• Achieve greater brand awareness to drive trial and repeat– National Media Campaign in development with greater spend planned– Sample. Sample. Sample.

• Allow the consumers feel that neuro works with usage-based, full-bottle sampling

– Support local marketing activations bringing neuro to life– Bring neuro’s functionality & personality to life through consumer “experiences”

• One of a kind “stunts” • Marry art + science in the music, fashion and art worlds

– Virally spread the neuro consumer “experience” in the digital world

2013 National Media Campaign

$3M integrated, multi-platform plan with over 2B impressions• National Digital, Mobile, Print, Social and PR outlets• Focus: Neuro Brand and individual functions• Support consumer “events”/stunts

Target Consumer • Primary Age: 18-25y• Secondary: 26-45y• 50/50 Male/Female• Middle income and up• Health Conscious

Increase Neuro’s awareness, trial and sales, with a fully loaded media campaign

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Psychograph • Trend setters• Culture creators• Technologically savvy• Original style• Always connected

A LIFE IN A BOTTLE

FOCUS : ART + TECNHOLOGY

• Create an oversized bottle to project content onto

• Content visually brings life to the vibrancy and creativity of neuro

• Lives in a prominent area such as Nokia Plaza, Hollywood Blvd or Venice

Beach

• Moves to other culturally relevant city/venue

• Example:

http://www.youtube.com/watch?v=8iMYuztBfKg

TRI – 1: Potenial Neuro “Experience”

INSPIRED PERFORMANCES

FOCUS : MUSIC + TECHNOLOGY + ART

• Utilize blazing new paths with technology, art, and music combined to deliver one of a kind performances and experiences

• Build a breakthrough project that could propel the neuro brand into the limelight

• Create an experience that is 100% neuro, similar to the V Motion Project inNew Zealand

TRI – 1: Potenial Neuro “Experience”

Social Media – Integrate & Expand x• OPTIMIZE our SOCIAL channels

OTHER MARKETING OPPORTUNITIES

Opportunities include:

In-Store sampling and general market usage occasion samplingRebrand and re-skin Walgreens Bowling mobile gameSupport existing DR digital and social programs (Bloggers, Social package)Customize exclusive content and create POS utilizing Aurasma technology to engage consumer through ARCoupon program (digital & printed)Cross Merchandising & Price Off ProgramsDuane Reade Charitable Foundation and Neuro Giving Back Charity ProgramTurnkey national retail marketing programs and local event tie opportunities

Neuro will invest in marketing programs to drive awareness and store traffic

DIGITAL OPPORTUNITIES

AURASMA – AR APP, BRINGING PHYSICAL AND VIRTUAL WORLDS TOGETHERA free-to download app that can place images, video and 3D models within static images or physical objects to project an interactive experience. Custom skinned opportunities. Buttons to access website or other action.Get ahead of competition. Opportunity to influence consumers in moments of consideration(POS, bottles, online). Opportunity to stand out in competitive spaces. Enhance brand engagement with core audience. New way to engage consumers.We have begun to use in print and online. Have not taken this to a retailer at this point.10,000 partners, 500 apps, 4M downloads. Kellogg’s Amazing Spiderman activation.

FOURSQUARE

Target specific usage occasion and purchase patterns. Sonic and Bliss.

EXISTING PLATFORMS

Utilize existing social media platforms to generate IRC in basic or more engaging ways. VIP Bloggers, Get Social, The Duane Reader.

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2013 Promotional Frequency/PricingOption #1 Calendar-$20/case, Max SRP: $2.69 plus 4 month long feature events at $17/case, MSRP:

2/$4

*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin

$22.00 8 $2.00 $20.00 12 $1.67 $2.79 $1.12 40%$22.00 4 $5.00 $17.00 12 $1.42 $2.00 $0.57 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 $17/case, MSRP: 2/$4

*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin

$22.00 8 $2.75 $19.25 12 $1.60 $2.69 $1.09 40%$22.00 4 $5.00 $17.00 12 $1.42 $2.00 $0.57 29%

Eye to Arm COLDEye to Arm COLD Rack attack,

owning the perimeterAffinity

Duane Reade 2013 Pricing & Promo Calendar

2013 JanuaryFebruar

yMarch April May June July August Sept. Oct Nov. 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 $19.25 $17.00 $19.25 $19.25 $17.00 $19.25 $17.00 $19.25 $17.00

$19.25

$19.25

$19.25

Funding Element Details Total

Marketing/Promotional Total Investment by Neuro $ 20,000

Revenue Total Revenue from Sales $677,919

TOTAL FINANCIAL VALUE: $697,919

Marketing & Promotion

Revenue & Profit Summary

Promotion Frequency

#Stores

ASSUMES only *. U/ **U per

store per Week

# Weeks

UNIT Volume Target

6 SKU’s/Year

Profit per Unit

GP % Revenue $ Profit $

*$2.79 Retail ($20/case) 230 .4 36 121,716 $ 1.12 %40 $339,588 $136,728**2/$4 Retail ($17/case) 230 1.1 16 170,016 $ .57 %29 $338,332 $97,476

   5224,311/cases $677,919 $234,204

Per SKU 4,052/SKU$112,987/

SKU $39,034

/SKU

* weeks of $2.79 retail price point• cs x Wks

** weeks of CLP 2/$4 promotions• cs x Promo Wks

NEURO WILL GENERATE ALMOST $ 678,000 IN REVENUE FOR DUANE READE