category selling story 11/29/2012 neuro key account team 2013
TRANSCRIPT
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CATEGORY SELLING STORY11/29/2012 Neuro Key Account Team
2013
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Functional Category & Product
Consumer Insights & Marketing
Customers
Xtra Mart 2013
Agenda
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Company Update
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NEURO’S PHILOSOPHY: WHAT WE STAND FOR
Premium Functional Ingredients
Our 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 offerings
Neuro 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...
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NEURO: TRUE FUNCTIONThe 24/7 Solution
Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.
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Functional Category & Product
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1970s
1980s
1990s
2000s
2010s
Refreshment
Low Calorie
Benefit Healthy Functional
Evolution of the Functional Category
THE OLD CONSUMER(static or shrinking numbers)
THE NEW CONSUMER(high growth demographic)
• Seeks refreshment• Seeks flavor over function• Doesn’t think about negative health
affects• Seeks the lowest price possible
• Demands noticeable functional benefit• Demands Low Calorie• Demands positive, AND no negative health
affects• Seeks Premium products• Willing to pay more for products that meet
these criteria
The Consumer driven evolution of what a beverage should deliver
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1. Provides a true benefit
2. Low Calorie
3. Healthy
Evolution of the Functional Category
PROVIDES A BENEFIT
HEALTHY
LOW CALORIE
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.
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Consumer Usage OccasionsEach Neuro SKU delivers on specific needs across multiple consumer segments
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Consumer Insights & Marketing
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Overall-All SKU Brand LoyaltyAmong regular users, Neuro’s brand loyalty is competitive with much older, more established brands
Vitamin Water
Sobe Life Water
Neuro Function Skinny Water
Activate Balance Karma0%
10%
20%
30%
40%
50%
60%
70%
80%
Brand Loyalty Index-All SKUs
Net Promoter Score; Q1 2012
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SKU Specific Brand LoyaltyNeuro Sonic’s brand loyalty is near or better than like SKU’s of many older, more established brands
Monster Rockstar 5-hour Energy
Neuro Sonic
Red Bull Sobe Lifewater
Vitamin Water
0%
10%
20%
30%
40%
50%
60%
Brand Loyalty Index-Neuro Sonic & Like SKUs
Net Promoter Score; Q1 2012
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2012 National Media Campaign
$3.5M integrated, multi-platform plan1.5B impressions
• National Digital, Mobile, Print, Social and PR outlets
• Regional OOH Billboard/Transit and Radio• Focus: Neuro Brand, Neuro Sonic, Neuro Bliss
Target Consumer
• Primary Age: 18-34y• Secondary: 15-18y and 34-49y• 50/50 Male/Female• Middle income and up• Health Conscious
To increase Neuro’s awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31st, 2012
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2012 National Media Campaign
Integrated National Campaign with a continuous focus on digital to target consumers
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Digital Ads
Video in Video
Greystripe Landing Page
Video Lightbox
Multiple Digital ad platforms deliver optimized targeted impressions
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Screen 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
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National 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 Ads
Rolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads
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Permanent Merchandise & Point of Sale
Available profit drivers:• Metal Racks• Cardboard Displays• Pallet Wrap• Pallet Header• Glide Racks• Posters• Statics• Push/Pull Signs• Shelf Strips• Pricing Stickers
POS Placement increases the profit story for every retailer:
• Ties the retailer into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers
Max number of smart placements = Max retailer profit
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Point of Sale
Available profit drivers:
• Racks• Price Labels• Generic Static• Poster• Shelf Strip• Pallet Wrap• Push/Pull• Pallet Header• Pole Display• Glide Rail Stickers
POS Placement increases the profit story for every retailer:
• Ties the retailer into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers
Max number of smart placements = Max retailer profit
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Sonic28%
Sleep20%
Bliss27%
Sun11%
Trim14%
Account S & Neuro scan sales; Q4/2011-mid May 2012
Neuro renews the category profit in a top national convenience chain
Sales Share of Brand
Direct 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 beverage
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2010 2011 2012
NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12
- YTD Neuro has gained 25pts of ACV
Neuro’s Distribution in the C-store channel
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2010 2011 2012
NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12
- Neuro is up 238% YTD in dollars, or +$16M
Neuro continues their Triple Digit Growth
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- neuro’s 4W sales are about to surpass Sobe Life Water & Glaceau Vitamin Water Zero
NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12
Neuro’s continued growth is taking over notable brands with significant presence
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- 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% Units
Functional brands are fueling growth (Neuro)
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- neuro’s dollars per SKU surpasses all but Glaceau Vitamin Water
NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12
Neuro’s SKUs surpass many other enhanced products
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Over last two years, Neuro has partnered with many C-Store Retailers across the country
Current National C-Store Partners
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2013 Trade Marketing Initiatives Neuro’s 2013 trade marketing initiatives will increase retail activation and drive consumer growth through anchor activations, functional focuses, and partner initiatives with our key distributors.
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Neuro & Xtra Mart -2013
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2013 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
*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin
$22.50 8 $2.50 $20.00 12 $1.67 $2.69 $1.02 38%$22.50 4 $4.50 $18.00 12 $1.50 $2.00 $0.50 25%
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 $18/case, MSRP: 2/$4
*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin
$22.50 8 $3.25 $19.25 12 $1.60 $2.69 $1.09 40%$22.50 4 $4.50 $18.00 12 $1.50 $2.00 $0.50 25%
Eye to Arm COLDEye to Arm COLD Rack attack,
owning the perimeterAffinity
Xtra Mart 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 $20.00 $18.00 $20.00 $20.00 $18.00 $20.00 $18.00 $20.00 $18.00
$20.00
$20.00
$20.00
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Neuro 2013 Example Functional Cold Set
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OTHER MARKETING OPPORTUNITIES
Opportunities include:
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 traffic
Xtra Mart & Neuro Marketing Opportunities
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Light 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 success• Profit driving merchandising agreement• Multiple, profitable points of consumer intercept• Integrated marketing programs, starting with point of sale