General Overview of the background and services my company provides

1. PREMIUM RETAIL SOLUTIONS OVERVIEW
Premium Retail Solutions
February 2011
www.premiumretailsolutions.com
678-279-8252
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2. PREMIUM RETAIL SALES – THREE PILLARS
Premium Retail can bring account management experience and
expertise at a fraction of the cost
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3. PARTIAL CLIENT LIST
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4. PREMIUM RETAIL SOLUTIONS – THE TEAM
Tom Armstrong - CEO
• 21 years experience in the consumer products and specialty retail industries
• Expert in launching new products and getting the most out of existing programs
• Former Merchandising Vice President – Vendor Service with Home Depot
• Vice President – Sales & Service Emerson Electric, included flagship brands like Ridgid, ClosetMaid, In-
Sinkerator and Louisville Ladder
• Began his career with Black & Decker and DeWalt
Winston Ledet – Chief Operating Officer
• Former Home Depot Merchandising VP - Strategy and Innovation
• Ran portfolio management and space allocation for Home Depot
• Led an internal innovation group called OrangeWorks that launched new products at Home Depot
• Led corporate strategy at Home Depot for three years
• Former consultant with McKinsey and Company and MBA from MIT’s Sloan School
Marthe Souza –Director Consumer Insights
• Home Depot –Strategic Business Development / HD Fuel
Wes Brown –Director Merchandise Analytics
• Home Depot –Director Merchandise Analysis; D25 Product Development Analyst
Arlene Korleh –Client Account Director
• Home Depot –D23 / HD Expo Merchant Assistant –18 years
Anita Clonts –Client Account Director
• Home Depot –D26 / D29 / D25 HD Expo Merchant Assistant - 22 years
• JDA Certified Space Planner
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5. PRODUCT AND CHANNEL STRATEGY
Premium Retail Solutions works with manufacturers who are brand new to retail or
to the US Market to develop a strategy for maximizing sales. We have conducted
studies of this sort for Wind Generators out of Europe, a new concept in Attic
Storage and welding tools out of Japan. The general study follows these basic
steps.
Consumer and Market Insights
• Understand through primary and secondary sources the demand for the category, channel
market share and competitor market share
• Test, through end user research, the viability of the clients offering and the potential share
gain as well as key features to develop/promote and price ranges to hit.
Channel Strategy
• Based on both share and current state of offering, create a prioritized channel
development strategy
• Developed a detailed plan for each channel –offering, price points, margin, distribution,
merchandising
Strategy Execution
• Assist in the sell in to retail channels
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6. CONSUMER INSIGHTS
Pricing
Premium Retail Solutions specializes in
turn key execution of consumer insights Expect to Pay* - Unprompted
studies. By managing all stages of the 100%
80%
research in-house we can turn project in 2 60%
weeks and apply all of our retail and 40%
Expect to Pay
20%
Home Improvement expertise to your 0% Cum Percent
research needs
$280-310
Over $500
Under 100
$100-130
$130-160
$160-190
$190-220
$220-250
$250-280
$310-400
$400-500
Pricing
Typical Types of Studies:
• Channel or brand market share
• Brand awareness Shopping Occasions
• Purchase intent and driving factors
• Prior purchases and driving factors
• New concept tests (including a proprietary Unplanned
Home Improvement model to predict 36%
success) Planned
64%
• Pricing studies
• New product market share predictions
• Understanding shopping behaviors, patterns
and occasions
• Demographics of adopters and non-adopters
• Testing of different shopping concepts
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7. PRODUCT LINE REVIEW PREPARATION
Step Stool Dollar Share
30%
Winning Business at retail: 25%
• Superior product assortment
Unit Share
20%
• Customer focused product presentation 15%
• Focus on driving sales and margin productivity 10%
• Market and consumer insights (consumer 5% Proposed Assortment
preference, pricing, competitive assessment) 0%
2004 2005 2006 2007 2008 2009
Wal-Mart Home Depot
Lowe's Target
What we do:
• Prepare customer focused research to drive and
validate your PLR recommendations
• Develop an overall strategy to win the business by
driving sales and margin for the retailer
• Use our ~20,000 square foot facility just down the
street from Home Depot’s Innovation Center to set, Expected Lift
photograph and change your bays
• Prepare for multiple assortments based on bay type
and market
• Assist with signage, packaging and placement
development
• Dry run through your PLR presentation with people
who have sat in the “other chair”
• Negotiation strategy development
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8. NEW PRODUCT/PROGRAM LAUNCH
Market Research Product Placement
Pricing Launch / Test Development
Projected
units (all Projected
Price stores) Revenue
$ 39.95 104,000 $ 4,154,800
$ 29.95 208,000 $ 6,229,600
$ 19.95 260,000 $ 5,187,000
What we do:
• Market and competitive intelligence
• Sales forecast based on market data and comparable products at retail
• Store placement and bay productivity guide placement and sales requirements
• Pricing analysis based on market and margin requirements
• Packaging and branding development
• Launch options including market test approaches
• Sales support with merchants
• Negotiations support
8 • In-store execution when needed www.premiumretailsolutions.com

9. ACCOUNT ADMINISTRATION
Premium Retail Solutions has a team of former Merchandising Assistants and
specialist in Retail analytics to supplement your sales team. Our team have decades
of experience working in Home Depot’s system and can manage the administration of
your Home Depot account at a fraction of the cost of a full time person.
Responsibilities include:
• Establishing and maintaining your items in HDLink,
Home Depot’s item repository for both stock and on-
line goods.
• Supplier Buying Agreement set up, needed whenever
your organization starts doing business with a new part
of Home Depot.
• SKU set up and maintenance in the core merchandising
systems including e531, e560 and AMT – tools to
maintain pricing, and active status
• Host (or push) orders to launch new products, execute
promotions or stay in stock
• In-Store-Service-Requests (ISSR) to engage the Home
Depot’s field merchandising team
• RTVs and Buybacks
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10. WEEKLY SALES REPORTING AND RESPONSE
Standard Reporting: Weekly Sales Trend - YOY
(Weekly, Monthly, Quarterly) 20%
15%
• Trending by SKU (Sales / Units)
10%
• Trending by Market and Program
5%
• On top of issues before the merchant
0%
asks
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
• Catch sales opportunities and problems Irrigation 2006 D28 2006 28I 28O
Exception Reporting: Stores with Zero Sales for the Week
(Weekly / Action Oriented)
• Zero Inventory 4 week 4 week Expected
average run average on-hand
• Drops in sales rate run rate at turn Store
Store # Store Name SKU # SKU Description (dollars) (units) On Hands On Order target Manager Store Phone RMM RMM Phone
• Unexpected price deviations 121 Cumberland 998424 Outdoor Security Light $ 312.27 10 0 0 57 Joe Blow 555-123-3333 Dan Johnson 555-444-3334
107 Tilly Mill 998424 Outdoor Security Light $ 364.86 11 89 11 67 Suzy Cue 555-123-3334 Dan Johnson 555-444-3334
• Ad Hoc reporting 141 Midtown 998424 Outdoor Security Light $ 295.83
$ 972.95
9 10 0 54 John Horn 555-123-3335 Dan Johnson 555-444-3334
Ad Hoc Reporting (project based)
• Test vs. Control for promotions, price changes and regional
variations
• Preparation for Merchant meeting on a specific topic
• PLR preparation to show the need for assortment changes
• Predictive modeling - What-if analysis
What we do:
• Combine EDI 852 POS sales data with Store level data
• Reports available weekly in Excel format
• Field response to exception reporting available
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11. ASSORTMENT MANAGEMENT & PLAN-O-GRAM DEVELOPMENT
Assortment Management:
• Having the “right” product in the “right” place at the “right”
time.
• Certified in Space Planning by Intactix® from JDA® software
• Optimized assortments to markets and stores
• Develop regional and seasonal variations
What we do:
• Transition your existing plan-o-grams the
required Home Depot format
• Manage the plan-o-gram, assortment, store
relationship for you using AMT and Intactix
• Maintain the plan-o-grams as you or other
vendors change, add or delete SKUs
• Transfer digital plan-o-grams to the Home
Depot and manage all compliance issues
Additionally with POS data we can
• Analyze sales, inventory and market data to
determine optimal assortments
• Develop alternative assortments
• Transfer digital plan-o-grams to the retailer
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12. IN-STORE MERCHANDISING SERVICE
Premium Retail has over 4,000 field employees and we cover every major market in the United States.
Premium can be the perfect complement to your existing retailer based merchandising. Premium adds the
ability to react fast. We can take a request by a Wednesday, be in stores for the project the next Monday and
be complete in all stores by the following Sunday. Whether you need help with on-hands and inventory,
recalls, returns, packaging fixes, POP or light PK training Premium Retail can be your partner to get it done.
Benefits:
• Over 4,000 field W2 employees covering every major market
• All employees are background checked and drug tested
• Extensive experience with stocking, POP, audits, resets, and
training
• State of the art web based training and project tracking -
QTrax
What we do:
• Plan your project to ensure your needs are met
• Execute the project to deliver results
• Report on progress and results
Cost:
Projects are quoted on a project basis typically from a base of $26 per man hour.
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13. DEMOS AND ASSISTED SALES EVENTS
Premium Retail Assisted Sales representatives, fully trained on the features and benefits of your
products, can provide in-store, in-aisle product knowledge training , demonstrations and conduct
event based selling in high traffic times. Premium can use sales analytics to help target the right
time of year, day of week and time of day to be in store. We have over 2,000 assisted sales reps
and a dedicated team of Home Depot certified sellers.
We have superior tracking systems which capture in store
activity and combine it with hard measures of ROI like
sales lift and softer measures like number of associates
trained and level of knowledge.
Benefits:
• For new products – assisted sales is one of the most powerful
ways to drive awareness and Sales
• Over 40% of purchase decisions are made at the shelf. An
assisted sales person, a demo or a well informed associate can
drive significant growth.
What we do:
• We manage every step of the process from scope development, to
training to deployment
• Execute the events
• Report back activity and results
Cost:
Projects are quoted on a project basis typically from a base of $36 per store hour
plus expenses related to demonstration supplies, shipping and training
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14. VPOP – A VIRTUAL APRON IN THE AISLE FOR SPECIALTY DEPTS
• vPop solves the problem of staffing in
specialty department where:
– You have to have an associate to get a sale and…
– …average ticket is often huge – thousands of dollars but…
– …transactions are infrequent leading to extended
unproductive time
• Premium has the retail and Home Depot
expertise to make a solution turn-key
– Expertise in specialty departments and processes
– Centralized staffing of call center operations
– Assisted sales training for expertise
– IT department to integrate any required system
• vPOP is a robust platform built to handle two
way customer interaction
– Live video / audio
– Ability to show samples, pictures, videos
– Allows centralized service to build expertise and allow multi-
lingual support
– Bandwidth option built in to the solution (if needed)
– Works with online solutions as well
– Monitored remotely with nationwide repair
crew
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15. MERCHANDISING AND MEETING SPACE
Premium Retail has a 20,000 square foot plan-o-gram and office facility about a mile from Home
Depot’s headquarters and the Home Depot Innovation Center. Space is available for store sets
that are too sensitive competitively for the IC or will take too long to perfect to be affordable
there. You can also use space permanently to have your store set up whenever you need it.
Benefits:
• 24 hour access to your set
• Guaranteed privacy from competitors
• Meeting space available
• 1 mile from SSC and IC
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