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TRIBAL WATERS: Embracing Consumer TribeseBook © Accelteon Partners and Torque Ltd. 2009

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Table of Contents 2 1. Preface p3 2. Eastern Water Company (EWC): In a Tight Squeeze p4 3. Client Engagement Process p6 a. Audit p7 i Understanding EWC p8 ii. Bottled Water Industry Snapshot p10 iii. Understanding EWC’s Consumers p13 1. Who are EWC’s Consumers? p14 2. Why Bottled Water? p15 3. On What Occasions Was Wellspring Consumed? p16 4. How Can Wellspring Be Improved? p17 b. Tribe Exploration p18 i. Recap of the Tribe Approach p19 ii. EWC’s Potential Tribes p22 iii. Fast Start Moms Tribe p24 c. Tribal Strategy & Planning and Execution p28 i. Developing a Tribal Strategy p29 ii. Brand Name Repositioning p30 iii. Product Packaging and Bottle Design p31 iv. Distribution p33 v. Marketing Communications p34 vi. Tribal Strategy, Goals & Metrics p40 vii. Rollout Plan p45

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Preface 3 In our previous white paper entitled “Tribal Marketing”, we discussed the concept of consumer tribes and tribal Torque Ltd., is a brand marketing agency, marketing, answering: providing mid market businesses with brand strategies and full • What is tribal marketing? service marketing programs. • Why should I care? and Accelteon’s mission is to enable your • Is it right for me? organization to strategically unleash the potential of In this eBook, we have teamed up with Torque – a Chicago consumer tribes. based brand marketing agency, to present a case looking at a Vermont-based bottled water company desiring to strengthen their relationship with their consumers, and ultimately, increase their annual sales. This case study will show you how applying a Tribal Strategy can achieve a company’s business goals. Our work has been inspired in part by Consumer Tribes, by Bernard Cova, Robert Kozinets and Avi Shankar. With Seth Godins publication of Tribes, we feel we are entering an exciting period of growing acceptance of tribal marketing concepts.

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EWC: In a Tight Squeeze 4 Accelteon was approached by Eastern Water Company (EWC) to help increase sales of their bottled water brand, Wellspring. While meeting with Maria Whitaker, the CEO, we began to understand why they were struggling to get shelf space in many convenience and grocery stores. “Our product, Wellspring, is being squeezed from both ends of the market;” she said, “the multi-nationals can buy significant media spots and buy their way onto premium shelf spaces such as end caps. At the other end, the store and discount brands often use their cost advantage to maintain lower prices than ours.”

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EWC: In a Tight Squeeze 5 Maria who visited our website and blog thought that the answer to gaining share and increasing sales volume Wellspring faces strong might come from a better connection to their consumer competition from both base, and that the Tribal Approach may work well with ends of the market: the Wellspring brand. large multinationals and discount brands. EWC She went on to say, “In the past we have tried to get on wants to increase market store shelves through slotting fees, but without much share and sales of their lasting success.” Wellspring brand. We showed Maria our overall engagement process that would enable EWC to understand the company’s high value consumers more fully, generate appropriate strategies to achieve the company’s goals, and to put the strategy into action (Figure 1, page 6 ). As a first step, we suggested that we conduct an audit to understand the company, brand, industry and EWC’s existing consumer base.

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Figure 1:Client Engagement Process 6AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING• Understanding EWC: • In depth primary and • Develop internal • Execute marketing programs ‣ problem/ opportunity secondary research provides the basis (company-facing) strategies and external (consumer- and internal alignment strategies ‣ Goals & objectives for defining and understanding facing) strategies to successfully build positive • Measurement reporting & analysis to • Understanding EWC’s potential consumer relationships monitor success and make EWC’s context: consumer tribes • Develop measures for strategic revisions industry, competitors, • Further research is conducted to success, tied to overall business goals • consumers understand tribal and consumption behavior Develop monitoring plan

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Audit COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING 7

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Understanding EWC 8 EWC was established in 1995 by the Richards family who owned an 80-acre farm near Rutland, Vermont. The land was originally settled in the 1890s by Sam Richards and was family run for generations. The success of the farm in part was due to a natural spring that could provide irrigation for the crops during dry seasons. In 1993, Jacob Richards noticed the emergence of the bottled spring water market in the US. Two years later he set up a small bottling facility on the property, marking the founding of EWC. The company began selling 500ml individual containers and 12 and 24 packs to local convenience and grocery stores under the brand Wellspring, the name of which was meant to convey that the source of water was from a natural spring. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Understanding EWC, cont. 9 As the company grew between 1997 and 2001, the complexity of the business was too much for the Richards Revenue grew from $7.5 family to handle, and they decided to hire a professional million to $23.0 million from 2002 - 2006. Revenues were management team. After a lengthy search they hired Maria practically steady in 2008. Whitaker as the CEO. Maria built her career in the beverages industry; starting as an analyst for Coca-Cola, she eventually became a VP of Sales and Marketing for a major bottle water company. Maria successfully grew the company’s revenue from $7.5 million in 2002 to $23.0 million in 2006, primarily focusing distribution and sales in the Northeast U.S. In 2007, however, revenues increased to only $24.5 million and in 2008 revenues were practically steady at $25.1 million. EWC spent about $1.7 million in marketing in 2008. About $700 thousand went into trade marketing including slotting fees, in store promotions and discounts. Only about $1.0 million was spent on consumer marketing, mainly focused on radio and print in large urban markets such as New York, Boston and Philadelphia. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Bottled Water Industry Snapshot 10 The $17 billion U.S. bottled water industry has been a booming industry in recent years, growing at a U.S. bottled water industry... $17 billion...growing at compound annual growth rate of 8.5% over the past 8.5% CAGR five years. The very strong health and wellness trend along with strong marketing and branding from large multinational corporations have contributed to the industry’s rise. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Bottled Water Industry Snapshot 11 The industry has faced and continues to face significant challenges, however. Controversies with respect to the quality and price of bottled water versus tap water, as well as an increasingly Bottled water Market Share environmentally-conscious society are among the most significant challenges. These factors might PepsiCo, Inc. explain why the industry, though growing year to 14% year, has experienced a declining growth rate Nestle S.A. since 2006. 30% From a competitive standpoint, several categories The Coca-Cola Company 12% of bottled water companies exist, including large multinationals, regional brands, and small niche private label companies. Multinational Other 33% Suntory Limited corporations are the prominent players, with 10% Nestle, PepsiCo., and Coca-Cola dominating 57.4% of market share. The remainder of the market is fragmented, with several hundred small and mid-sized operators. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Bottled Water Industry Snapshot 12 With retailers such as convenience and grocery stores being the primary buyers who ultimately distribute “Branding has become the most significant product to end consumers, bottled water companies differentiator” must compete for shelf space. Traditionally, bottled water has been differentiated by its composition (e.g. presence of particular trace minerals) and provenance (derivation from a particular source). However, since the large multinational players entered into the market in the mid 1990’s, branding has become the most significant differentiator. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Understanding EWC’s Consumers 13 While secondary research provided us with a broad consumer profile of bottled water drinkers in the U.S., we wanted to dig deeper to ensure our consumer research would provide insights most relevant to EWC. Therefore, over a period of a few weeks we set out to conduct surveys and focus groups with EWC’s existing consumer base. The purpose of the research was to understand existing consumers in greater depth. • Who were they? • What motivated them to purchase Wellspring? • In what instances and occasions did they purchase Wellspring? • How could the product be improved? Ultimately, the research would reveal insights on potential consumer tribes to target, and by what means. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Who are EWC’s Consumers? 14 • Skew to Women (63%) • Skew to Non-Whites (56%) • Tend to be adults who are on the young side (18-44 yrs) (67%) • 52% of their consumers had kids between 8-18, of which 45% have their kids enrolled in sports or other activities 63 67 56 Non-Whites Women Young Adult COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Why Bottled Water? 15 Why bottled water? 38 year old male consumer “I trust that it is better for you than some of the other brands. After all, it is a 45 family business and not 35 some big company.” 24 6Tap isn’t as Healthy Tastes Better than tap Healthier Alternative Mobile & Convenient Why Wellspring? 35 year old mother “I refuse to give my kids pop or juices with sugar. Bottled water is a better choice.” She further explained “I was upset to learn that many of 51 57 68 the big companies simply purify municipal water. I like Wellspring because I know it Source (spring water) comes from a local spring.” Availability Trust Brand COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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On What OccasionsWas Wellspring Consumed? 16 • 8%: Work 40 year old mother “I coach soccer in the • 9%: At home summer. I buy cases of Wellspring for my team from the supermarket • 20%: Fitness and Exercise before the game.” 37 year old mother • 22%: Family/Community Outings “I like to get together with • 24%: Children’s Sporting Events other families in my kids’ school and extracurricular communities. We bring Wellspring to community events for a healthier beverage option.” 20 8 22 9 24 Work At home Fitness and Exercise Family/Community Outings Children’s Sporting Events COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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How Can Wellspring be Improved? 17 • 35% believed that the environment was a key concern for them in their decision not to purchase the product. • 79% of people believed that the bottle water industry in general was either very or somewhat negatively impacting the environment. • Wellspring consumers would prefer more convenient locations to purchase the product, other than convenience and grocery stores. • Convenience in packaging for easy transport of the product would help, specifically for carrying 12 and 24 multipacks. COMPANY • INDUSTRY • CONSUMERS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Tribe Exploration AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Recap of the Tribal Approach 19 EWC traditionally segmented their consumers through geographic and demographic segmentation. The tribal approach provides a very different perspective of EWC’s consumer base, focusing primarily on a common passion that bonds a consumer group – a tribe. Segment Tribe Female Male Caring parents of 18 - 49 18 - 49 Children & young teens Environmentally mindful and active community members AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Recap of the Tribal Approach The Tribal Relationship Traditional Marketing• Consumers are viewed as independent decision makers• Marketing focuses on company/consumer communications• Marketers focus on developing company/consumer relationships: loyalty marketing, 1-to-1 marketing Relationship /• Companies focus on leveraging consumer/consumer relationships: Word of mouth (WOM) marketing, social/ WOM Marketing viral marketing• The tribal approach views the role of the company as supporting the activities, passions and interaction between Tribal Marketing consumers• Consumer tribes value goods and services for their ability to connect them to others• Marketing communications focuses on joining conversations AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Recap of the Tribal Approach 21 Why Consumer tribes? Business drivers Indirect benefits Direct benefits In return, the organization gains the opportunity to receive several benefits from the consumer tribe. Word of mouth by Develop tribe members intimate relationships Free WOM with consumers by passionate consumers who Brand Solicit love to spread consumer Advocacy feedback the word Gain Consumer Valuable Loyalty insight ROI Product Reduced improvements marketing & innovation spend Increased revenues AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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EWC’s Potential Tribes 22 Using the consumer research we gathered as the crux of our analytical and creative thinking, we were able to identify two potential tribes for EWC. Potential Tribes CONSUMER ANALYSIS & RESEARCH CREATIVE THINKING Potential Tribe Common passion Caring Parents Healthy lifestyle for their family and children Enthusiastic Environmentalists Feeling of responsibility for the environmental impact of bottled water consumption AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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EWC’s Potential Tribes 23 These tribes were not necessarily mutually exclusive. Nonetheless, their common passions could potentially be leveraged and we wanted to know more. Could EWC support these consumer tribes to achieve profitable growth? And through what means could EWC be able to do so? CARING ENTHUSIASTIC PARENTS ENVIRONMENTALISTS AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Fast Start Moms 24 Through more in-depth primary research with potential tribe “members” (as identified during initial The strength of marketing to surveys and focus groups), we were able to further a tribal consumer comes identify and define a central tribe on which to focus: from the discipline of being Fast Start Moms. highly focused and selective, rather than being many things to many people. AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Getting to Know the Fast Start Moms Tribe 25 A Brief Profile of FSMs • Mother or primary parenting figure and manager of household. • Hyper-involved parent, rooted in their belief that their children should have all of the advantages available to successfully launch them into their adult lives. • Go on to become “Helicopter Parents” as their children emerge into young adulthood, hovering over their children and micromanaging every aspect of their lives. ‣ Tend to be 2nd or 3rd generation Caucasian, or Hispanic. ‣ Tend to have 2+ children. AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Getting to Know the Fast Start Moms Tribe 26 Tribal behavior Consumption behavior • FSMs take full advantage of school, church, community and sports teams offered in the • Do most if not all the shopping for their household. community (e.g. get involved as assistant coaches in their child’s sporting activities, is on PTA, on • Detailed and conscientious about their the board of the homeowners’ association). product selections, determined to pick the best (although not necessarily at any cost— • They are both fully involved in supporting the couponing and discount intelligence is often organizations as well as demanding a lot from a tribal topic). townships and districts behind them. • Prefer shopping locations where they can • Highly communicative tribe, staying in contact purchase items for multiple needs (e.g. club in person or virtually. stores, power centres). • Technology enabled: • Some, but not all FSMs are very ‣ Cell phones, e-mail, instant messaging, environmentally conscious decision makers. Facebook accounts, Google and other tools are daily necessities. • Need to believe the makers of a product have their interests in mind. ‣ Shoot digital photos and miniDV movies of events and gatherings, and post them to • FSMs can become strong promoters —or the Internet for a variety of different detractors— of products for which they’ve sharing and collaboration purposes. had notable experiences using. AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Tribal Behavior 27 Fast Start Moms Tribal Map: Virtual and real spaces where the FSM tribe meets and interacts Real Space Church events School Community Events Sporting events activitiesAsynchronous Synchronous Facebook Sharing of messaging digital photos Cell Instant messaging Twitter Phone Virtual Space AUDIT TRIBE STRATEGY EXECUTION EXPLORATION & PLANNING

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Tribal Strateg y,Planning and Execution Brand Promise • Brand Name • Packaging & Design • Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Brand Name Reposistioning 29 We recommended EWC to slightly modify the product name from Wellspring to WellSpring. The modification signifies EWC’s renewed consumer focus on the FSM tribe, where the name emphasizes not only the product’s derivation from a natural spring water source, but also the themes of wellness (“Well”) and performance (“Spring”)Before After Wellspring PREMIUM DRINKING WATER Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Developing a 30Tribal Strategy for EWC As a small niche brand, we understood that it was not realistic for EWC to compete with large multinationals on a large national scale; rather, our focus was to grow EWC’s market share and sales in the category and geographic areas in which it competes. Based on the analytics we conducted on the research gathered on the FSM consumer tribe, we developed a 3-part brand promise that would appeal to the tribe: • Trust: FSMs can be extremely loyal to a brand they know and trust. The brand must continue to uphold its reputation. • Convenience: FSMs have limited time to spend shopping and they constantly look for ways to simplify their lives. Thus, Wellspring must find innovative and feasible ways to make their products more accessible and user friendly. • Health & fitness: Children’s health, fitness, and general well-being was a primary concern for FSMs. Thus, Wellspring should stay true to its natural source and stay away from additives. TRIBE STRATEGY AUDIT EXPLORTATION & PLANNING EXECUTION 30

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Product Packaging and Bottle Design 31 To address the brand promise of convenience, we recommended to supplement the 12 and 24 pack with handles at both ends for easy transport. Additionally, we suggested a redesign of the bottle mold to include a bump texture to make it easy for small hands to grip. This would require a new die, but cost per bottle is low given the long production runs, over time. Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Packaging Design 32 With passionate environmentalists comprising a sizable share of the FSM tribe, we recommended changing the packaging, from plastic wrap to cardstock. This also gave the packages a premium appearance comparable to upscale water brands, as well as better merchandising opportunity. Develop branded Develop 48 oz. coolers for Introduce “WellSpring Friends Create a reusable no slip sleeverefillable containers athletic field-size refills of the Environment” package to that can slide onto bottles. This select 24 packs (includes would be packaged with 24 seeds, natural fertilizer, and a multipacks as a promotion ‘plant a tree’ packet guide’) Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Distribution 33 EWC was limiting distribution of the product to grocery and convenience store distribution. To address the consumption behavior of FSM’s we recommended distribution of product in locations where FSM’s normally shop to raise the probability of increased sales. Before After • Club stores • Power centers • Grocery stores • Community events • Convenience stores • Grocery stores • Convenience stores Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Marketing Communications 34 EWC focused their marketing budget primarily on trade marketing and little on consumer marketing. Before Trade Marketing: We recommended EWC to shift spend on supporting • Slotting Fees the tribe & facilitating communication amongst • In store promotions and discounts tribe members. Consumer Marketing: The shift in focus provides several advantages: • Radio • Print • Concentrates resources on a passionate and engaged group of consumers –a tribe –who willingly propagate the brand message, leading to more efficient marketing spend. After • Consumers associate mass media marketing with large corporate brand marketing. The move towards targeted • Focus on supporting the tribe & facilitating communication amongst community-driven media creates a close-knit feel and fosters tribe members trust in the brand. • More focused and intimate communication with consumers generates opportunities to gather consumer insights • Use targeted media that leverages the tribe’s current modes of • Supporting the tribe and relevant causes fosters trust and reinforces EWCs brands in areas and occasions that matter communication most to the tribe. Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Leveraging Web 2.0 tools:A Strategic Approach 35 We do not believe in the ‘build it and they will come’ theory. Rather, Web 2.0 tools and social media enable companies to facilitate tribal interaction, and we develop this process strategically. The idea is to introduce the brand to the tribe and tribe members to each other step by step, starting by leveraging current modes of communication. Progress checks are built into the process to ensure the strategy is working, and to improve where it is not. Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Leveraging the Tribe’s 36 Current Modes of Communication Fast Start Moms Tribal Map: Virtual and real spaces where the FSM tribe meets and interacts Strategy: Real Space Church Be active in supporting events events relevant School to FSMʼs Community Events Sporting events activitiesAsynchronous Synchronous Facebook Sharing of messaging digital photos Cell Instant messaging Twitter Phone Stratagy: Virtual SpaceLeverageing Web 2.0 tools Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Communications Strategy 37• Leverage social media sites: • Progress check to • Build further dialogue • Utilize consumer become active in posting comments determine if online by building a forum for insights to generate and beginning dialogue with existing community traffic & members to discuss ideas for product Facebook, Twitter and other online responsiveness is topics of interest to improvements, product communities. sufficient to proceed with them on the WellSpring innovations, and• Redesign WellSpring website and subsequent phases. website. campaigns that begin to post information that • Develop mechanism for support the tribe. supports the tribe as determined collecting & analyzing through initial consumer research consumer insights. (e.g. providing tips on how to get children hydrated for better sports performance)..• Bring awareness to online initiatives: ‣ Search engine maximization ‣ Promote website on product labels ‣ Promote at community events Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Communications Strategy 38Leveraging social media sites where the FSM tribe interacts: Building a forum for tribal interaction:WellSpring on Facebook the WellSpring website Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Real Space Communications Strategy 39 Utilize consumer insights Leverage success of campaigns Obtain further feedback to Attend and retrieved online to in real space to propagate discover and developparticipate in relevant discover and develop positive word of mouth online more ways to support the community events more ways to support (share success of community tribe in real space the tribe in real space events to online community, etc) Similar to the Web 2.0 strategy, the idea of a real space communications strategy is to introduce the brand to the tribe and tribe members to Charity:water each other step by step. A first step would be to get to know the tribe by participating in relevant community events, providing a face for www.charitywater.org the brand. • Non-profit organization The real space communications strategy integrates closely with the Web bringing clean and safe drinking water to people in 2.0 strategy, where consumer insights are utilized to discover and developing nations develop more ways to support the tribe in real space. For instance, consumer insights might reveal that it would be important to: • Gives 100% of donated money directly to project • Sponsor local sports leagues and community events costs, providing financial • Sponsor world children relief charities aligned with the company’s support to develop product, such as charity:water sustainable clean water solutions In turn, the success of campaigns in real space can be leveraged to propagate positive word of mouth online. • Projects involve drilling wells to provide people with water in areas of greatest need Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Monitoring Progress and Measuring Success 40 Our approach to measurement The tribal strategy is always supported by a business case that indicates precisely how the tribal strategy contributes to the organization’s overall business goals. The organization’s business goals - in EWC’s case, “to increase sales” and “increase market share”– are translated into specific, quantifiable goals. Subsequently, a monitoring plan is created and a monitoring dashboard is built to enable progress monitoring. Develop business case: Create monitoring Use dashboard Understand build quantifiable goals plan & build to monitor & business goals & metrics monitoring dashboard re-calibrate strategy Traditional financial measures, such as sales and ROI figures, are important but alone can be misleading. Instead, we rely on multiple sets of measures – stemming from various perspectives – to provide an integrative picture of the firm’s performance as it relates to achieving their overall business goals. A Tribal Strategy Metrics Summary is used to measure overall success and pinpoint potential problem areas (Figure 2, page 41 ). Brand Promise • Brand Name • Packaging & Design Distribution • Communication AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Figure 2:Measurement Perspectives and 41the Tribal Strategy Metrics Summary Measurement Perspective What is measured Example of goals and metricsFinancial Perspective Measures financial results of actions taken in Goal: Increase sales by 8% this year the past Metric: Actual Sales at beginning of year verses end of year Measurement tool: Compare sales figure as per company Financial statementsConsumer Perspective Measures the ability to meet, sustain and Goal: Increase brand awareness amongst FSMs by 20% this year predict consumer requirements Metric: Actual brand awareness Measurement tool: brand awareness surveyInternal Perspective Measures the ability to meet strategic Goal: Create new marketing campaign monitoring process by August 31st requirements efficiently through the right choice Metric: Actual completion date of business processes Measurement tool: n/aOther measurement perspectives are incorporated, based on the client’s business objectives Perspective Weighted Target weighted Difference: Weighting score score score Target vs. Actual Financial Perspective 30% 83% 24.9% 24.0% +0.9% Consumer Perspective 40% 74% 29.6% 32.0% -2.4% Internal Perspective 30% 81% 24.3% 24.0% +0.3% Total 78.8% 80.0%*Metrics are sample numbers Potential problem areas can be Overall progress is measured identified, and investigated in further detail

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Example: Consumer Measures 42 Consumers proceed through several stages in their interaction with a brand: Brand awareness Consideration & Purchase Loyalty brand preference The intent of consumer measures is to monitor progress throughout these stages. The underlying premise behind this model is that the tribal strategy supports consumer tribes, ultimately translating to the overall business objectives of ‘increased market share’ and ‘increased sales.’ Metrics are carefully crafted to be able to monitor progress at each stage. Thus, areas of strength and weakness can be determined throughout the monitoring process (Figure 3, page 43). AUDIT TRIBE STRATEGY EXPLORTATION & PLANNING EXECUTION

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Figure 3: Sample Metrics-Consumer Perspective 43 STAGE Example consumer Weights Measures Measurement Tool Target Actual Differential weighted (/100%) (Target Score Perspective Goals vs. actual) Awareness Increase brand awareness Actual brand awareness at Measure brand awareness prior to amongst FSM’s by 20% this beginning versus end of year strategy execution using surveys 10% x% x% x% x% year and periodically thereafter Preference Be the number one choice WellSpring rating versus competitor Utilize surveys to rate brand preference by FSM’S 25% brands preference x% x% x% x% Loyalty Maximizing consumer Actual consumer satisfaction in Utilize surveys to quantify consumer satisfaction in terms of the terms of the company’s product satisfaction 20% x% x% x% x% company’s product quality quality Maximizing consumer Actual consumer satisfaction in Utilize surveys to quantify consumer satisfaction in terms of the terms of the company’s tribe satisfaction 20% x% x% x% x% company’s tribe support support efforts efforts Increase positive word of Combination of word of mouth Track the number of “positive mouth regarding the measures (positive keywords, keywords” indicting positive states of 25% x% x% x% x% company and its products customers surveys, social media mind in posts and comments activity Consumer perspective score x% x% x% x% Specific metrics can be monitored for potential Tribal Strategy Metrics Summary areas of improvement Perspective Weighted Target weighted Difference: Weighting score score score Target vs. Actual Consumer Perspective Score is rolled up into theFinancial 30% 83% 24.9% 24.0% +0.9% high level Tribal Strategy Metrics SummaryConsumer 40% 74% 29.6% 32.0% -2.4%Internal 30% 81% 24.3% 24.0% +0.3%Total 78.8% 80.0%

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Tribal Strategy Metrics Summary 44 Metrics are rolled up into a Dashboard for review of progress and analytics. Tribal Strategy Metrics Summary Possible Score Target Score Actual Score Difference: Target vs. Actual Financial Perspective 30% 24.00% 24.90% 0.90% Consumer Perspective 40% 32.00% 29.60% -2.40% Internal Perspective 30% 24.00% 24.30% 0.30% Total 100% 80.00% 78.80% -1.20% Project at a Glance Internal Metrics Possible Score Target Score Metrics Summary Analytics Actual Score Summary of performance Financial Metrics Reporting 100% Consumer Metrics 83% Differential: Target versus Actual Performance 67% 1.50% 50% 0.75% 0% 33%-0.75%-1.50% 17%-2.25%-3.00% Financial Perspective Consumer Perspective Internal Perspective Total Financial Perspective Consumer Perspective Internal Perspective Total

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Rollout Plan 45 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12Packaging & Bottle Design Bottle Design 12 & 24 pack handles “WellSpring Friends of the Environment” package Reusable no slip sleeve Branded refillable containers 48 oz. coolersDistribution Distribution negotiations with club stores and power centers Point of sale developmentCommunication Web 2.0 Communication strategy Initiate content and outreach on social media sites Website redesign Search engine optimization strategy Develop platform for discussion and interaction on WellSpring Website Develop consumer insight collection mechanismReal space communication strategy Commence participation in relevant community events Sponsorship program

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Please contact us for more on Tribal Marketing, or to discuss your Tribe Strategy. 46Accelteon Partners Inc.info@accelteon.comT 647 727 4070www.accelteon.comwww.accelteon.com/blogToronto, ONTorque Ltd.kmasi@torquelaunch.comT 312 421 7858 www.torquelaunch.comwww.torquetribemarketing.comChicago, ILTribal Waters eBook is a fictitious case study,intended to model tribe marketing methodologies.No names, products, companies or individuals aremeant to represent any real-world counterparts. 46