INTERNATIONAL CONFERENCE 7TH – 9TH MAY 2014

WHO IS CEUTA HEALTHCARE?

• Private company founded in 1994 – Celebrating 20 year anniversary this year!

• Sales and Marketing specialists• Ceuta International Alliance• 200+ employees

THE UK EXPERIENCED A VERY MILD AUTUMN & WINTER PERIOD

MARKET TRENDS: INCIDENCE DATACold & Flu incidence rates at their lowest in 15 years,

Affecting footfall in pharmacy

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100

150

200

250

300

350

400

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Month

2008-2009

2009-2010

2010 - 2011

2011 - 2012

2012-2013

2013 - 2014

Incidence of Common Cold 2008 - 2014

So there is clearly work to do…...

What have we been doing behind the scenes to change things?

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MMMmmmmm?..

How can Fisherman’s Friends add more category value?• NPD: New formats, new flavours• Driving category awareness• Driving sales outside of key season• Deliver significantly enhanced category profit to retailers

How can we replicate the brand’s international success?

6*Nielsen Value data 2013 vs 2010

TWO FUNDAMENTAL QUESTIONS WE’VE BEEN ASKING OURSELVES IN THE UK……

2014 FISHERMANS FRIEND RESEARCH PROJECT

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QUANTITATIVE RESEARCH ON-LINE QUESTIONNAIRE

Investigating issues such as;• Motivations to purchase

• Frequency / Loyalty• Perception of price

• Flavour Choice

QUALITATIVE RESEARCH ACCOMPANIED TRIPS IN-

STORE• Investigating issues such as;

• Motivations at point of purchase• Fixture Navigation

• Decision Tree (Impulse v Planned)• Importance of price & promotion

SIGNIFICANT INVESTMENT FROM BRAND OWNERS

CONFIDENCE TO EXECUTE THE LONG TERM BRAND STRATEGY AND DELIVER

THE VISION

*Nielsen Value data 2013 vs 2010

WE FOUND THAT FF CONSUMERS ARE EXCEPTIONALLY LOYAL….

Only 1/3rd of consumers would buy another brand in store if Fisherman’s Friend were not available

36%

32%

32% Buy another brand in that shop

Go elsewhere to buy Fisherman's Friend

Not sure/ it would depend

Q9 If you went into a shop to buy some Fisherman’s Friend and all the flavours of Fisherman’s Friend you would buy were not available, which of these phrases best describes what you would do?Base: 300 interviews

KEY RESEARCH FINDING – FF FLAVOUR CONSUMERS ARE YOUNGER

45% of Blackcurrant consumers are 18-34yrsQ4 What flavours of FF lozenges do you purchase / eat? Base: 300 interviews

18-34yrs 35-54yrs 55yrs+0%5%

10%15%20%25%30%35%40%45%

Original Extra Strong

18-34yrs 35-54yrs 55yrs+0%5%

10%15%20%25%30%35%40%45%50%

Blackcurrant

75p 85p 95p £1.050

10

20

3040

50

6070

80

90100

97%95%

90%

81%

Very high level of acceptance of 75p, and relatively little drop-off even over the £1 price point

Q13b We are going to show you a number of prices which could apply to the sachet type pack of Fisherman’s Friend. For each price tell us whether it is very acceptable, acceptable or unacceptable for a sachet of Fisherman’s Friend lozenges. (prices rotated)Base: 258 interviews (those buying sachet format)

KEY RESEARCH FINDING – FF IS AN EXCEPTIONALLY PRICE INELASTIC BRAND

WHAT WERE THE KEY INSIGHTS FROM RESEARCH?

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1. FF CONSUMERS ARE EXCEPTIONALLY LOYAL

2. FF IS AN EXCEPTIONALLY PRICE INELASTIC BRAND

3. FLAVOUR CONSUMERS ARE YOUNGER THAN ORIGINAL EXTRA STRONG CONSUMERS

4. FLAVOUR CONSUMERS HAVE A HIGHER PURCHASE FREQUENCY

5. HONEY & LEMON AND BLACKCURRANT ARE THE TWO MOST PREFERRED FLAVOURS BY CONSUMERS

6. BRAND STANDOUT WITHIN STORE IS POOR

7. 25G IS A MORE PORTABLE PACK THAN 45G

Q. WHAT ARE THE IMPLICATIONS OF THIS?

Q. WHAT ARE WE GOING TO DO ABOUT IT?

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BRAND SEGMENTATION

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SEGMENT A – ‘LOYAL LEOS’

LOYAL LEOS

• 55ys+• Male bias• Medicinal purposes• Appeal of product “strength”• Exceptionally high brand loyalty• Very price inelastic

‘I remember my grandfather always had a pack in his green coat. He handed me one when I was eight and said I’d never like them! That was it, I had to try it and I’ve been buying them ever since’

‘They last a good 10 minutes and I love them, their strength’

‘They wouldn’t work or warm me up if they weren’t strong, perfect for hiking’

‘They are the only cough lozenge I have grown up with’

SEGMENT B – ‘FREQUENT FREDDIES & FREYAS’

FREDDIE & FREYA

• 25-45 yrs• No gender bias• Appeal of strong flavoured lozenge• Appeal of “sugar free”(stripes)• Brand quirkiness / Price inelastic• In line with FF international demographics

‘more like sweets’.

‘if passing the fixture and acting on impulse’

‘It was developed originally for North Sea fishermen you know, to keep them warm and sooth their throats, no wonder they are strong but they do the trick’

‘Looking at the fixture now it makes me feel like trying it again – especially the blackcurrant one, I didn’t know they did that’

“Sugar free is a real selling point” (female bias)

NEW PACK FORMAT: SEP 2014

3 x 25g packs Leverages the brand’s high

consumer loyalty and price inelasticity to drive category value margin

Competitive p/g vs 25g & vs 45g Addresses portability issue

Loyalty Pack

NEW FLAVOUR: SEPT 2014

A winning combination, known and recognised by all for it’s natural, remedial qualities especially for coughs, sore throats, colds and flu ‘A winner’ ‘I’d try that in a flash’

Liked by all and strongly felt to encourage trial ‘I can’t believe that they haven’t done this already’

A combination that would bring new users into the brand Honey & Lemon flavour accounts for 18.2% of all medicated

confectionery sales in the U.K.*

Honey and Lemon

*Nielsen, December 2013

FISHERMANS FRIEND BRAND- 5 YEAR VISION

• Double market share from 5% to 10%• Retail value to £10M

• “Original Extra Strong” share of UK portfolio 75% to 40%

• Significantly enhance retailer category value and cash margin generation

• Multi-flavour market: annual flavour launch

• Reduction in seasonality via Segment B (Tropical launch)

• ATL focusing on;• Brand equity ‘quirkyness’• Stripes / Sugar free• Major event sampling

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THANKYOUFOR LISTENING