IntroducingThe next generation of Shopper Marketing partnership programsThe next generation of Shopper Marketing partnership programs

Instant Combo Savings®

2011

Member of

2011

Introducing…Instant Combo Savings®

ICS drives incremental volume through merchandising support activated by a partnership with retailers’ complementary, non-competing Private Label brands. Consumers receive significant savings driven by multiple National brands

• Feature ad support in weekly circular• Full page FSI in each retailer's key markets• Guaranteed displays pre-authorized by retailer (75%+ compliance)Guaranteed displays pre authorized by retailer (75%+ compliance)• Customary TPRs not required• Category exclusivity

N ti l t i d t th t l l• National program customized at the account level• Performance Guarantee or your money back!

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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

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*Assumes 25 – 35% savings for each offer

ICS drives feature support & consumer support & consumer attention

• Delivers high value savings to the consumer

9 12 offers from multiple• 9-12 offers from multiple National brands

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

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

Weekly circular3

gthe bonus

ICS supports the program with a full program with a full page FSI

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

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

Multi-shelf endcap Floor display Refrigerated display Frozen display

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p p y g p y p y

ICS guarantees POS placementICS 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

Shelf/soda department Shelf/chip department

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Category Exclusivity/TimingCategory Exclusivity/Timing• CPG brands receive category exclusivity for both National

Brand and Private Label competitorsE h t il ’ i t i d d 1 k i d ti• Each retailer’s program is customized and 1 week in duration, tied to the retailer’s ad week

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Option: Corporate EventOption: Corporate EventICS 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*of typical FSI Corporate Campaigns

• An ICS Corporate Event is dedicated to your companyyour company

- Choose your theme - Customize your bonus/overlay- Minimum 9 offers

• Pricing upon request

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* Source: March – May 2010, Safeway

ICS is a turnkey programICS is a turnkey program

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

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

Projects volume liftjInforms Category Managers/helps close incremental sale

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

guarantee results)

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Timeline Flowchart

LOCs due

ICS presents offers to Retailers for approval

Retailers approve offers and advise Category Managers of program details

Countersigned LOCs returned to CPGs together with sales bulletins for CPG account reps to discuss with their Category Managers

ICS begins program implementation

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Letters of Pre-Authorization

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Rollout TimetableRollout TimetablePhase Timing ICS Retailer Network Stores

1 2008-2009 2 Retailer Test COMPLETED

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

TEST IN PROCESS

3 (2011) Cycles 1 6 Ahold Harris Teeter 1 6753 (2011) Cycles 1 - 6 Ahold, Harris-Teeter, Roundy’s, Save Mart, Hy-Vee, Pathmark

1,675

4 (2011) Cycles 7 - 13 10 5,100

5 (2012) 2012 FoodDrug Mass

13,300+ stores/Top 3118,800+ stores/Top 3

2,800+ stores/Top 2

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ICS 2011 Cycles

Cycle 2 Cycle 3 Cycle 4 Cycles 5 & 6

LOC Commitment due 9/10 10/8 10/29 12/3

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ICS Retailer Network

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Program Investment Cycles 1-6, 2011y ,

Media/Distribution FSI (22 4mm)

Partnership Offer – CPG will be billed for face value f t hi ff l 5¢ h dli

Participation Redemption FSI (22.4mm)POSCircular (37.8mm)Store Participation and Post Promotion Evaluation $ 49

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

Merchandising/ProductionMerchandising servicesPrint ProductionShipping $16

T t l C t P St $65

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

Total Cost Per Store $651,675

Total Cost $ 108,875

Note: 1 Grocery Beverage or HBC products may incur an additional cost for corrugate display units or pallets depending on the retailer

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

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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 stores

Performance GuaranteePerformance Guarantee

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

NOTES:O S• Rebate will be calculated based on sales data provided by the retailer• Performance guarantee is valid if the following conditions are met:

• There is no promotion support (TPR, feature ad, display) during the 2 weeks prior to the ICS programp g

• There are no out of stocks or interruption of product supply at the manufacturer orretailer level

• There are no recalls or adverse publicity in effect• First time participation by CPG

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p p y

ICS Multiple Participation Discount

Discounts are based on the number of participations within one program. Participation must include all retailers in the ICS Network

Number of Participations

Media/Distribution Cost DiscountParticipations Cost Discount

2 25%

3 35%3 35%

4+ 45%

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Promotional ComparisonDisplay

HighHigh

Sampling

FSI+

TPR

TPR

MarginL

MarginHi h

FSI

Low High

Catalina

FSIIn-Store Coupons

In-Store MediaDisplay

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LowSize of Circle = Volume

ICS RecapICS RecapAnnounced 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 StrongStrong 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 volume lifts projected for your brand, we will rebate you a portion of the media/distribution cost.

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Next Steps

• Discuss details related to your participation

Next Steps

• Identify participating brands/packages• Confirm category availability• Identify related item categories

• Review ICS Master Services Agreement

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The next generation of Shopper Marketing partnership programs

Instant Combo Savings®Instant Combo Savings

Instant Combo Savings182 Howard Street, #005San Francisco, CA 94105T (415) 788-3838 ext. 401F (415) 366-8220

Member of

www.InstantComboSavings.com

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