Retailers that carry both the PVL (private label) and Diamond brands of cutlery outperform retailers carrying only PVL on several sales measures. At the household level, new buyers of Diamond cutlery are completely incremental and independent of PVL buyers. Adding the Diamond brand to the assortment of a Northeast food retailer doubled their cutlery sales, demonstrating the incrementality of including both brands. The recommended assortment structure is a predominantly PVL mix with complementary Diamond items.

1. $elling $tory
Client Objective was to sell in a branded option in addition to PVL in this
low involvement category
Dual Distribution

2. 2
Optimal Product Offering
Retailers which Carry both PVL and Diamond outperform Retailers which are
PVL Only on every measure of category performance.
100 100 100 100 100 100 100 100 100
110
95
113
131 130
116
110
118
109
BUYER
CONVERSION
RETAIL TRIP PER
BUYER
BUYER CONV EFF TRIP
CONVERSION
ITEM $ PER
BUYER
# PURCH PER YR $ PER PURCH $ WHEN IN BSKT $ WHEN N-I-B
PVL PREDOMINANT BOTH
Index of PVL/Diamond Relative to PVL Predominant Retailers

3. 3
New/Lost/Retained Buyer
At the HH Level we see the flow of buyers on Diamond totally independent of
PVL and vice-versa. New Diamond buyers are 100% incremental.
5.12 5.12
1.12 0.99
1.94
0
1.08 0.93
CATEGORY DIAMOND PVL OTHER BRAND
9.25
1.11
9.25
1.68
2.66
1.20
0.00
1.39
CATEGORY DIAMOND PVL OTHER BRAND
2.88
0
1.71 1.43
6.89 6.89
1.63 1.29
CATEGORY DIAMOND PVL OTHER BRAND
2.73
1.03
0
1.56
9.17
1.09
9.17
1.61
CATEGORY DIAMOND PVL OTHER BRAND
LOST BUYER FLOW -
DIAMOND
NEW BUYER FLOW -
DIAMOND
LOST BUYER
FLOW - PVL
NEW BUYER
FLOW - PVL
Source: Nielsen Homescan, July 2006

4. 4
Reasons For Brand Loyalty
These buyers groups are independent because they are looking for different things:
PVL - Price and Convenience
Diamond - Durability and Quality
DIAMOND STORE BRAND
DIAMOND
VS.
STR BRAND INDEX ALL BUYERS
(Sample Size) (62) (162)
Available At A Price I Want 48% 82% 59 58%
Available In A Pack Size I Want 42% 38% 111 43%
Products Are Strong/Durable 47% 19% 247 40%
Overall Quality Is Better 27% 6% 450 24%
Picked Up What Was Convenient 23% 28% 82 22%
Available In The Color I Want 10% 9% 111 15%
Most Attractive Looking Cutlery 11% 1% +++ 9%
Only Brand Available 19% 6% 317 7%
OTHER 0% 4% 0 3%

5. 5
Cutlery Weekly Sales
Addition of Diamond at a major Northeast Food Retailer resulted in a
doubling of their Cutlery business.
We can see the incrementality in Action at retail.
Northeast Food Retailer

6. 6
Recommended Assortment
a predominantly PVL mix
with complementary Diamond items in one size.
The Optimal category mix would have
Private Label Diamond
24CT 48CT 144CT 24CT 48CT 144CT
FORK X X X
SPOON X X X
COMBO X X X X
FORK X X X
SPOON X X X
COMBO X X X
Heavy Duty
Full Size