Hiro Retailing Workshop

Slide 2: Where does the Fearless System fit in? • Access Marketing • Business model designed to access the potential and income dynamics of powerful marketing channels for TNI IPCs. • All cornerstones of Access Marketing funnel benefits through our compensation plan • Four Cornerstones of Access Marketing 1. Fearless Income Building: Advantage Program 2.Consumer Business: TNI Rewards Program 3.Retailing: HIRO and other Ready-to-Drink 4.Incentives, Recognition, Rewards: Success Path © 2008 TAHITIAN NONI INTERNATIONAL

Slide 3: Fearless Income Building The Fearless Theme: “The concept of ‘Fearless Income Building’ is to take all the risk* and fear out of building a TNI business so everyone has a platform to build a significant residual income.” - Kelly Olsen, President TNI *Conditional upon signing up 3 new IPCs in 30 days © 2008 TAHITIAN NONI INTERNATIONAL

Slide 4: The Fearless Rules • Rules for your Fearless business 1. Never use your own money to fund your business expenses 2. Convert your life to Tahitian Noni Products and always get your product FREE 3. Never use your Residual Income to fund business expenses © 2008 TAHITIAN NONI INTERNATIONAL

Slide 5: • How do I do this? – Three step system Step 1: Get your business fully qualified (start-up) Step 2: Be Cash Flow Positive through Active Income activities (your product is free!) Step 3: Build Residual Income © 2008 TAHITIAN NONI INTERNATIONAL

Slide 7: Step 2: Cash Flow Positive • What does “Cash Flow Positive” mean? – Cash Flow Positive means profitability – Being Cash Flow Positive indicates that your business earns more than it invests both at start up and each month thereafter – Being Cash Flow Positive allows you to build your business from a position of superior strength and without fear since there is no risk Monthly Focus: Generate business revenue through your activities to cover your monthly CAS product investment = Active Income © 2008 TAHITIAN NONI INTERNATIONAL

Slide 11: Meet the New Guy • 18 years retail product marketing, advertising, & sales • Last 5 years – Pure Fruit Technologies • New Role: Drive HiRO™ Retail Sales for TNI Globally  Not HiRO Product Line Manger  Not HiRO Sales Support/RSM  I will help you place HiRO into Retail © 2008 TAHITIAN NONI INTERNATIONAL

Slide 12: HiRO™ - The inside Story • Created to expand brand awareness of TNI in the Retail market through IPCs • Built to allow IPCs to build wealth through RETAIL marketing - Access Marketing • Wider brand recognition of TNI products in retail can result in more activity and sign-ups • Find at least ONE RETAIL STORE selling 7 cans a day and get product FREE. – 12 cases a month © 2008 TAHITIAN NONI INTERNATIONAL

Slide 14: Why Energy Drinks • They SELL!! 33 Million* 8.3 oz. cans daily!! • Red Bull® developed the energy drink category starting in the 1980’s • Marketing Basis for Category: – Improves physical performance and stamina – Increases mental alertness – Improves reaction time – Improves ability to concentrate * World wide (Data Source: Euromonitor International) © 2008 TAHITIAN NONI INTERNATIONAL

Slide 15: The Energy Drink Market • Most common ingredients: taurine, B vitamins, guarana • Most common price range: $1.99 - $2.19 • WW Consumers will spend $41 Billion this year on Functional Beverages. $20 Billion on Energy Drinks • 2007 WW Functional Bev. Sales $37.1 Billion (+9.3%) • 2007 US Functional Bev. Sales $16.4 Billion (+11.5%) • 2007 WW Energy Drink Sales $17.8 Billion (+15.1%) • 2007 US Energy Drink Sales $7.7 Billion (+21.6%) (Data Source: Euromonitor International) (Functional Beverages: Sports Drinks, Energy Drinks, Elixirs) © 2008 TAHITIAN NONI INTERNATIONAL

Slide 16: Consumer Demographics Energy Drink Consumers China Japan United States Sweden Germany Norway 0-14 10% 12% 14% 12% 11% 13% 15-24 30% 26% 33% 31% 30% 30% 25-34 24% 26% 21% 21% 21% 22% 35-44 14% 21% 15% 15% 18% 15% 45-54 10% 9% 9% 9% 9% 9% 55+ 12% 5% 8% 12% 11% 10% • 69% Male • 89% Urban • All income levels © 2008 TAHITIAN NONI INTERNATIONAL

Slide 17: Retail Beverage Distribution • 350,000 Retail stores selling beverages in US (not counting vending-only locations) • 285,000 work for Energy Drink sales • 165,000 get products through distribution ONLY (Tiers 1-3) • 100,000 are independently owned retail amenable to buy direct from product reps or brokers (IPCs) (Tier 4) © 2008 TAHITIAN NONI INTERNATIONAL

Slide 18: Retail Distribution Tiers • National Distribution Point Tier 1 • Require 4% - 6% margin • Regional / Local Food & Beverage Distribution Tier 2 • Require 25% - 30% margin • Retail Chains Tier 3 • Require 40% - 50% margin • Buy primarily through Distribution • Independent Retailers – BEST TARGET FOR MOST IPCs Tier 4 • Require 40% - 50% margin • Buy direct, through Distribution, or both © 2008 TAHITIAN NONI INTERNATIONAL

Slide 19: Retail Distribution Demands • Product Appeal – Do consumers want it? • Profit Margin at all levels – Can it produce revenue? – Retailer 40% – Distributor 25% – Master Distributor 5% • Product Movement – What will you do to drive sales? – Product Branding, packaging, convenience – Advertising and Promotion © 2008 TAHITIAN NONI INTERNATIONAL

Slide 20: Retail Distribution Demands • Product Differentiation – How is HiRO™ better or different? – To whom does it appeal? (target market) • Quality / Safety (Science, studies, testing, comparisons) • Product Stability / Shelf life • Manufacturer Stability - Who is TNI? Will they be around next year? • Broker (IPC) Stability - Who are YOU? Can you keep us in stock? © 2008 TAHITIAN NONI INTERNATIONAL

Slide 21: Playing the Retail Game • Free Fill offer or Slotting Fees (Intro Deals) - IPC • Marketing Commitments, Ad Dollars - IPC/TNI • Product Demos - IPC – Where, when, how many, how long? • MCBs, case stack deals, expiring product - IPC • Shelf sets, displays, product stocking – IPC • Product manufacturing - TNI © 2008 TAHITIAN NONI INTERNATIONAL

Slide 22: Playing the Retail Game • Guaranteed In-Stock and Available - IPC – Shelf real estate is precious, requires healthy “turn”, and will not tolerate vacant space – Broker rep (IPC) often required to set shelves • Retailer/Distributor Paperwork – Supplier Agreement – Expectations, requirements – Payment terms, stipulations © 2008 TAHITIAN NONI INTERNATIONAL

Slide 24: Playing the Retail Game • Ordering and Re-Ordering – Be Prepared – IPC should order supply to keep ahead of demand – Will Retailer carry all or some products? – Order financing – payment terms • Ongoing Support and Relationship building – Intro new product extensions – Supply ongoing sales and promotional materials © 2008 TAHITIAN NONI INTERNATIONAL

Slide 25: HiRO™ Positioning • Primary Retailer/Consumer Concern: Price • HiRO™ is Not just another Energy Drink • “Functional Beverage that gives you Energy” • HiRO™ is the Elite Brand in the Category… – Premium product worthy of premium price – Dare to Compare! – ONLY one in the category with the equivalent of at least one serving of TAHITIAN NONI® juice – All natural with added vitamins and minerals, lightly carbonated – Low calories – only 10 calories per can – Sustained energy - NO CRASH and Burn! © 2008 TAHITIAN NONI INTERNATIONAL

Slide 26: Retail 101 – “The Four Ps” • Product – What you have to sell • Price – How much it costs – SRP (Suggested Retail Price) – Retailer margins • Place – Where the product is best positioned to sell and Why • Promotion – Where and How you will persuade consumers to purchase © 2008 TAHITIAN NONI INTERNATIONAL

Slide 27: Realities of Retail • Is Wholesaling HiRO™ right for you? • Long-term commitment of TIME and EFFORT – Selling to Retail should be “In addition to”, NOT “In place of” TNI business – Beware the “one-time sale” mentality – Must continually service the retailer • Keeping product in stock and shelves full • Promotions and demos with product – Realize revenue grows with volume over time © 2008 TAHITIAN NONI INTERNATIONAL

Slide 28: Realities of Retail • Financial commitment – Think # of retail locations x ___ cans per day • 1 location x 9 cans per day = 270 cans/month (12 cases) • 2 locations x 6 cans per day = 360 cans/month (15 cases) • 10 locations x 6 cans per day = 1,800 cans/mo (75 cases) • 16 locations x 8 cans per day = 3,840 cans/mo (1 pallet) • YOU CAN DO THIS!! • Make it your goal to build retail business to justify pallet orders to be highly profitable © 2008 TAHITIAN NONI INTERNATIONAL

Slide 29: HiRO™ Pricing Chart Qty $ per can Wholesale CV/QV 24 $2.70 $65 35 72 $2.56 $185 110 144 $2.43 $350 220 288 $2.34 $660 440 1-4 pallets $2.15 $8,260 per pallet 5,860 per pallet 5-14 pallets $1.99 $7,640 per pallet 5,000 per pallet 15-49 pallets $1.89 $7,257 per pallet 5,000 per pallet 50-99 pallets $1.79 $6,873 per pallet 4,800 per pallet 100+ pallets $1.39 $5,299 per pallet 3,264 per pallet © 2008 TAHITIAN NONI INTERNATIONAL

Slide 30: Pitching the Product • Call ahead – set appointment with “functional beverage” buyer or store owner • HiRO™ is the “Product Line” Thermo™ is a Product • Meeting Preparation – Samples – Supply a can of each product – Literature – Product info/comparison charts – Retailer/Distributor Paperwork • Liability Insurance info © 2008 TAHITIAN NONI INTERNATIONAL

Slide 31: Pitching the Product • Meeting Preparation (continued) – Promotional Support • In-store : brochures, window clings, shelf tags, posters • Product Displays: Cooler barrels, mini fridge, large product displays, case stacks • Product Demos: in-store sampling demos • Advertising: Radio ads, billboards, print ads, store flyers – Price and Terms • Ongoing direct sales and supply through IPC (Preferred) • COD, 2% 10 net 30, net 30 - IPC • Consignment - IPC © 2008 TAHITIAN NONI INTERNATIONAL

Slide 32: Pitching the Product • Appearance and Professionalism • Think and speak “retail vernacular” – Broker rep / manufacturer rep – SRP, SKU, profit margins, payment terms • Avoid “Network Marketing vernacular” – IPC, Independent Distributor, CV, QV, Personal Rebates – Up-line, down-line, sponsor – Beware Rewards Membership © 2008 TAHITIAN NONI INTERNATIONAL

Slide 33: Role Play and Rehearse • Role Play the sales call with a friend – Personal Confidence – Believe in the product – Build Credibility - Ask questions • How robust are your sales of functional beverages? • How many cans a day do you consider “good product turn”? – Introduce Product, Price, Promotion – Assess interest – Ask “Don’t you think Hiro would be a fantastic addition to your store?” – Address concerns (case studies) © 2008 TAHITIAN NONI INTERNATIONAL

Slide 34: Role Play and Rehearse • Most important part of the presentation: Ask for the sale! • “How many cans of each product do you think you would need for a first-time order?” • “What requirements do I need to meet to get an order placed today?” • “How soon can I bring in Product to stock your shelves?” • “Would you like to start with a case of each SKU so we can see which product appeals most to your customers?” • Let’s Role Play © 2008 TAHITIAN NONI INTERNATIONAL

Slide 35: Tier 4 - Independent Retail • Selling to Tier 4 (Mom & Pop) – Retail Price Point $3.59 – Wholesale Price $2.49 (30% or $1.10) • Profit Analysis – IPC Price at 288 can rate: $2.34 – Profit per can $.15 can / $3.60 case / $43.20 (12 cases) – Personal Rebate (20% or $.88/can) = $0.305 can / $7.32 case / $87.84 (12 cases) – Gross Profit = $0.455 can / $10.92 case / $131.04 (12 cases) • Minus freight, time, travel, etc. © 2008 TAHITIAN NONI INTERNATIONAL

Slide 36: Tier 4 - Independent Retail • Selling to Tier 4 (larger independent) – Retail Price Point $3.59 – Wholesale Price $2.154 (40%) • Profit Analysis – IPC Price at 1-4 pallet rate: $2.15 – Profit per can $.004 can / $15.36 pallet – Personal Rebate (20%) = $0.305 can / $1,171.20 pallet – Gross Profit = $0.309 can / $1,186.56 pallet • Minus freight, time, travel, etc. • Minus free-fill or slotting • Minus sales and promo tools © 2008 TAHITIAN NONI INTERNATIONAL

Slide 37: Tier 3 Retail Chains • Selling to Tier 3 – Retail Price Point $2.99 – Wholesale Price $1.794 (40%) • Profit Analysis – IPC Price at 50-99 pallet rate: $1.79 – Profit per can $.004 can / $15.36 pallet – Personal Rebate (20%) = $0.25 can / $960.00 pallet – Gross Profit = $0.246 can / $994.64 pallet © 2008 TAHITIAN NONI INTERNATIONAL

Slide 38: Tier 2 Reg/Local Distributors • Selling to Tier 2 – Retail Price Point $2.99 – Wholesale Price $1.794 (40%) – Regional/Local $1.3455 (25%) • Profit Analysis – IPC Price at 100+ pallet rate: $1.38 – Profit per can -$.0345 can / -$132.48 pallet – Personal Rebate (20%) = $0.17 can / $652.80 pallet – Gross Profit = $0.1355 can / $520.32 pallet © 2008 TAHITIAN NONI INTERNATIONAL

Slide 39: Tier 1 National Distributors • Selling to Tier 1 – Retail Price Point $2.99 – Wholesale Price $1.794 (40%) – Regional/Local $1.3455 (25%) – Tier 1 Price $1.278225 (5%) • Profit Analysis – IPC Price at 100+ pallet rate: $1.38 – Profit per can -$.101775 can / -$390.816 pallet – Personal Rebate (20%) = $0.17 can / $652.80 pallet – Gross Profit = $0.068225 can / $264.984 pallet / $26,198.40 per 100p © 2008 TAHITIAN NONI INTERNATIONAL

Slide 40: Tiers 1 & 2 Distributors • IPC Requirements – Order at 50+ or 100+ Pallets – Must be selling to 100+ stores – Freight costs – Slotting fees or Free Fill – Match Co-op Advertising funds – Create and execute marketing campaigns – Distributor rep incentives for new store placement – Employee assistance – Vehicles with wraps © 2008 TAHITIAN NONI INTERNATIONAL

Slide 41: HiRO™ Energy – Key Selling Points For big energy and enhanced performance. A healthier alternative to crash-and-burn sugary energy drinks and sodas, HIRO Energy draws on the power of guarana, B vitamins, and taurine to give you the boost you need.** – Noni, to enhance health and vitality** – Guarana, a natural caffeine, to give you energy – High levels of B-vitamins – 1,000mg of taurine, a powerful antioxidant – Low in sugar and just 10 calories – Fantastic taste **These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. © 2008 TAHITIAN NONI INTERNATIONAL

Slide 42: HiRO ™ Vitality – Key Selling Points Packed with nutrients that help support and maintain a healthy immune system, HIRO Vitality is perfect for travel, work, vacations, or anywhere you need to give your immune system a boost.** Noni, powerful antioxidants, and vitamins and minerals help your body maintain a healthy state. - Noni, to enhance health and vitality - Vitamins and minerals essential to a healthy immune system - No added sugar - Only 10 calories per serving - Terrific flavor **These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. © 2008 TAHITIAN NONI INTERNATIONAL

Slide 43: HiRO™ Mobility – Key Selling Points Do more than just get around—live every moment on your own terms. HIRO Mobility is the only joint support beverage in the world that combines the power noni, glucosamine, chondroitin, and MSM.** It delivers powerful, mobility-enhancing nutrients to your body to help ensure you move the way you need to. - Noni, to enhance health and vitality - 1,500mg of glucosamine - 1,000mg of MSM - 500mg of chondroitin - Supports healthy joints** - Great-tasting flavor **These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. © 2008 TAHITIAN NONI INTERNATIONAL

Slide 44: HiRO™ Thermo – Key Selling Points Now there’s a great-tasting product that burns calories while delivering the natural health and proven benefits of Tahitian Noni ingredients. Hiro Thermo harnesses the demonstrated science of EGCG and caffeine to help the body release heat through a chemical reaction within cells to burn calories (thermogenesis). Studies have shown that EGCG combined with caffeine increases metabolic activity.** - Burns calories - Increases Thermogenesis - Contains EGCG, a powerful source of antioxidants and thermogenic enhancer - Boosts metabolism - Contains high levels of antioxidants - Tastes delicious **These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease. © 2008 TAHITIAN NONI INTERNATIONAL

Slide 45: Sales Tools and Training • Noni Office – Developing more robust HiRO™ Beverages section – Developing common Q&A – Training Presentations for IPCs – Product and Sales Presentations for Retailers • Webinars for IPCs • Developing Retailer Intro Kit • Regional retail sales trainings • Helping close large deals (ICB) © 2008 TAHITIAN NONI INTERNATIONAL

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