Aha! Health and Wellness Capabilitiesv4

Aha! Unlimited Consulting, Inc.
Health and Wellness Category Experience

Introduction
Aha! Unlimited Consulting, Inc. 2104
§  Who is Aha!
–  We are a marketing consulting practice specializing in
Ø Go-to-market strategies
•  Rebranding
•  Advertising
•  Web-channel marketing
•  Sales support
•  Sales collateral
•  Business Planning
•  Advisory capacity

Introduction cont’d.
§  Who is Aha!
–  Strategic
–  Creative
–  Results-oriented

Experience

The Aha! Process
Discovery
Review research
Conduct user
feedback
Corporate
materials
Competitive
Development
Branding
recommendation
Packaging
Marketing Plan
Strategic Elements
Campaign
Deployment
Creative execution
Print production
Photography
Web design
SEM/SEO
Media planning
and placement

Company Background
ü  Founded in 1971 by Dr. Marshall Stamper, Sr. as an initiative to respond to the
loss of his mother who suffered and died from obesity related complications
ü  Recognized as the “gold standard” in weight management built from a 36-year
track record of consistent weight loss results for over 350,000 patients
ü  Unlike other weight loss fads, Lindora’s weight loss and weight management
program focuses on addressing both the physical and psychological hindrances
related to successful dieting
ü  Program helps patients with initial weight loss objectives and teaches them to
incorporate lifestyle/diet changes to maintain desired weight
ü  Currently serves approximately 4,000 daily customers in 35 medically based
weight loss treatment centers throughout southern California
ü  Strategic initiatives already underway for national expansion through retail
partnership with Rite Aid Corporation (“Rite Aid”), national direct response
campaign and corporate weight loss programs

Multitude of Weight Loss Initiatives
ü  Lindora helps its patients achieve their weight loss objectives through a diverse
portfolio of products, services and distribution channels
Medical Clinics
Lindora-by-
Phone®
Brand Licensing
Lindora Website
Online Daily Program
Branded Nutritional
Products and Supplements
Retail
Weight Loss Solutions
Self Help/Books

Lindora Medical Clinics
ü  34 stand-alone clinics located throughout southern California
ü  Short duration, intense intervention model
–  10-week, 6-week, 4-week programs
ü  Staffed by medical doctors, nurse practitioners, registered nurses and licensed vocational nurses
ü  Customized Lean for Life® weight loss program to meet each patient’s individual needs
ü  Fully integrated, proprietary software WeighTrac® (introduced in 1990) meticulously tracks patient
data, allowing the Company to expertly guide patients’ daily weight loss goals, measure progress
and improve service levels

Lindora Medical Clinics
ü  Typically 3,000 square feet and located in a stand-alone retail location with five
treatment rooms, one examination room, a nurse’s station and three bathrooms
ü  Offer the traditional Lindora weight management programs and related products—
currently formulating a plan to roll out relevant “wellness services” in stand-alone
clinics that are geared toward women
–  Services include breast and pelvic examinations and Pap smear
ü  Treat approximately 120 patients per day
ü  Program costs can range between $550 to $1,900
ü  Average annual revenue per clinic is $1.2
million
ü  Average gross margin per clinic is 46%
ü  Average EBITDA contribution margin is 41%

Lindora’s Typical Patient Profile
ü  Gender Split: 85% women, 15% men
ü  Age Range: 35-54 years old
ü  Weight loss goal: > 40 lbs
ü  Household Income: Customer Split:
–  14% under $30,000;
–  20% between $30,000 - $49,999;
–  66% over $50,000
ü  Why Lindora?: Approximately 90% have tried
alternative diet programs and
failed
ü  Spending: Average of $2,083 on the
initial Lean for Life® 10-week
clinic program

Lindora Medical Clinic Marketing Support
Direct Mail Postcard Direct Mail Letters In-Clinic Posters
Program/Clinic Brochures TV/Radio Campaigns Print Advertising

Lindora Health Clinics
ü  September 2006 strategic partnership agreement with Rite Aid offers unique combination of
episodic acute care with branded chronic care (weight loss services and Lean for Life®
proprietary products)
ü  Significant potential for expansion of the Lindora Health Clinic concept in partnership with
Rite Aid and other food, drug and mass retailers throughout the U.S. (e.g., Wal-Mart Stores,
Inc. (“Wal-Mart”), Target Corporation (“Target”), Walgreen Co. (“Walgreens”))
ü  Potential partnership with other episodic acute care clinics (e.g., RediClinic)
ü  “…the first two months of operation have far exceeded our expectations and we look
forward to expanding the program. An additional benefit is the high margin we get from the
Lindora weight loss products we have added to the front-end.”
–  Mary Sammons, Rite Aid President & CEO,
3rd Quarter Investor Call on 12/21/2006

Lindora Health Clinics
ü  Typically 200 to 300+ square feet with either two or three rooms for treatment and
administrative processing
ü  Offer the traditional Lindora weight management programs and related products, as
well as “wellness services” to treat walk-in acute care, non-emergency medical
conditions
ü  Patients have the opportunity to walk in without an appointment and typically pay
approximately $60 for an acute care visit while weight loss patients can invest between
$375 and $465 in a multi-visit weight loss program
ü  Management estimates each in-store clinic
should generate approximately $440,000 in
revenue in year 1 and approximately $800,000
in year 2
ü  LHC gross margin expected to be 9.6% in
year 1, expanding significantly to 46.7% in
year 2, reflecting customer traction and
subsequent revenue ramp

Lindora Health Clinics Marketing Support
Services Brochure Nurse Practitioner Brochure Stationary Package
Shopping List Buttons Magnets

Lindora Health Clinics Marketing Support…(cont.)
Bag Stuffer Direct Mail In-Store Signage
Newspaper Public Relations Rite Aid Web Link
ü A FREE safe and effective 10-week weight loss
program developed by Lindora that can be
accessed anywhere
ü FREE online weight loss tools, such as sample
menus, a weight tracker, downloadable daily
action plans and more
ü FREE live, online seminars with weight loss
experts

ü  Opportunity to distribute Lindora branded products
outside of southern California on a mass scale
ü  Provides a unique value proposition different from the
manufacturers of nutritional supplements, offering
products that support a proven, four-decades-strong
comprehensive weight loss program
–  Nutritional products are positioned alongside
weight loss program material (e.g., Lean for Life®
books and other support tools)
–  Products are placed in custom designed end caps
designated as “Lindora Weight Loss Center”
–  Combination of comprehensive, unique product
offerings and access to a proprietary weight loss
program provide a competitive advantage over
other nutritional supplement manufacturers
Retail Product Distribution

Retail Product Distribution
ü  Retail channel offers over 20 best-selling product SKUs
–  Top movers from Lindora’s 120-SKU lineup of books, tapes, accessories and nutritional
food & beverage products
ü  Retail distribution expected to reach 1,300 stores by fiscal 2011
–  Management’s expectations of distributing in 1,300 stores in four years appear conservative
given Rite Aid’s network of 5,180 drugstores alone and considering that Lindora products
will be in 435 Rite Aid stores by September 1, 2007, nearly 10% ahead of budget
ü  Benefits of retail distribution partnership extend beyond product sales
–  Further brand awareness, as “shelf billboard” augments and reinforces the Company’s
national marketing campaign
ü  Each store is anticipated to generate approximately $750 per week in retail sales, of which Lindora
retains 60% or $450
ü  Gross margin for the segment estimated to be 58%
2007B 2008P 2009P 2010P 2011P
New Retail Distribution (stores) 404 224 224 223 223
Cumulative Retail Distribution of Products 406 630 854 1,077 1,300

Lindora Lean for Life® Branded Products
ü  Designed specifically to complement the Lean for Life® program, facilitating the
attainment and maintenance of weight loss goals
ü  Broad scope of products includes results oriented books, audio/video products, weight
loss accessories and over 100 high-protein nutritional offerings (e.g., protein bars,
beverages, vitamins and supplements)
ü  Available via Lindora Stand-Alone Clinics, Lindora Health Clinics, retail distribution,
online and telephone

22
Direct Response Campaigns
ü  Company in process of testing various online direct response marketing campaigns to
stimulate additional online sales
ü  Online direct response marketing program is different from the television direct response
initiative
–  Online campaigns focus on promoting Lindora weight loss programs and products,
offer special discounts such as “free shipping” for a month and 20% discounts
–  Online direct response channels include:
§  Search Engine Optimization/Microsites
§  Affiliate programs
§  Email lead generation programs
§  Strategic/Super-affiliate partnerships
–  April–June 2007 sales were $122,000 higher (up 32%) than the prior period in 2006
Online Direct Response

23
Direct Response – Online & Telephone
ü  Both Lindora Online™ and Lindora by Phone®
feature the same clinically-proven Lean for Life®
program, books, tools and nutritional products
developed and used at the clinics
–  Lindora Online™
§  All branded products available online
§  Personalized and interactive weight loss
program through My Lindora Online™
–  Lindora by Phone®
§  Staffed by nurses (unique in the industry)
who are Lean for Life® experts that provide
information, guidance and support to help
participants stay focused and motivated

Lindora Corporate Weight Loss Program
1 Wolf, AM, Colditz, GA. “Current Estimates of the Economic Cost of Obesity in the Unites States.” Obesity Research. 1998; 6:97-106
2 Health Economist Eric Finkelstein, RTI Institute
3 Ramsey, S. et.al. Productivity and Medical Costs of Diabetes in a Large Employer Population, Disease Care. 2002; 25:23-29
ü  Annual medical costs for obesity related diseases:
–  Total direct and indirect medical care costs over $130 billion, of which approximately half
stems from lost wages due to lost employee productivity and premature death
–  Heart disease, $8.8 billion; Type 2 diabetes, $98 billion; high blood pressure, $4.1 billion
ü  Annual costs of lost productivity due to obesity
–  39 million lost work days, 239 million restricted activity days, 90 million bed rest days and 63
million physician office visits per year are linked to obesity1
–  On average, normal weight people miss about three days of work per year, obese men miss
five, and obese women miss eight days of work2
ü  Employers pay an average of $4,410 more per year for employee beneficiaries who have obesity
and obesity related diseases than for beneficiaries who are not obese3
ü  In 2007, an increasing number of large corporations have expressed the need for a corporate
weight loss program

ü  Lindora has been approached to offer its expertise in weight loss solutions
–  Potential partnership with Walgreens to provide weight loss solutions on the company’s
corporate client campuses
–  Participation in the Marcus Evans Benefits Summit (September 23-25)
§  One-on-one presentations of a corporate weight loss solution to over 30 Fortune 1,000
companies, employing at least 5,000 people
–  In discussions with HealthGenex to provide a corporate weight loss solution to a variety of
large corporate clients
§  In process of preparing a proposal to Microsoft Corporation to offer a weight loss
solution to the company’s 80,000+ employees
ü  Lindora will market its corporate weight loss solutions by targeting four channels:
–  Direct to corporate client;
–  Medical insurance brokers;
–  Insurance carriers; and
–  Third-party distributor agreements

ü  There are very few organizations that offer effective weight loss programs to the corporate
customer
–  Weight Watchers and American Specialty Health (portfolio companies of Invus and TA
Associates, respectively) are the dominant players in the corporate customer space for weight
loss
§  Weight Watchers generates approximately $50 million in annual revenue from
corporate customers
§  Blue Cross Blue Shield of Massachusetts is covering the first $150 of members’
participation in Weight Watchers
§  American Specialty Health generates approximately $100 million in annual revenues (a
combination of weight loss & smoking cessation programs as well as chiropractic
benefits programs)
–  Neither offer medically based weight loss programs that also have the ability to address other
obesity related illnesses such as Type 2 diabetes and heart disease
ü  Federal legislation pending to provide businesses with tax credit of $200 for first 200 employees
participating in a wellness program and $100 per employee thereafter

Pricing Options
Lindora American Specialty Health Premium/
Monthly Annual Monthly Annual Discount
Pricing Options Rate Rate Rate Rate ASH
10-Week Online Program
Includes 1 Orientation Call
Excludes Book, Keto Sticks & Protein Pack
100 - 9,999 Employees
Employee $2.95 $35.40 $3.27 $39.24 -9.8%
Employee & Spouse $5.90 $70.80 $6.52 $78.24 -9.5%
Employee & Family $8.85 $106.20 $9.45 $113.40 -6.3%
Employee Only Plan $3.15 $37.80 $4.24 $50.88 -25.7%
Continuation Online Programs
10-Week $55.30 per eligible participant (employee, spouse, child)
6-Week $45.50 per eligible participant (employee, spouse, child)
A La Carte Items
Coaching Calls $24.00
Lindora Clinics in Southern California 20% discount
Special Control Programs:
6-Week Program - 2 Visits/Week $300.00
10-Week Program - 2 Visits/Week $375.00

Strategic Alliances
ü  Food items bearing the Lean for Life® certified healthy heart logo are low calorie, low
fat, moderate protein choices that meet the guidelines set forth by the Lindora Medical
Advisory Council
ü  Generates enhanced awareness for the Lindora brand in the minds of consumers
–  Partnership with leading fast-casual Mexican restaurant chain El Pollo Loco in
October 2004 which, to-date, has distributed over 10 million eat-in tray liners
–  Certified Lean for Life® logo is being added permanently to in-store and drive-
through menu boards throughout El Pollo Loco chain

Lindora Brand Marketing
Co-Marketing Efforts

Sunrider
Pro
Marke.ng
Collateral

•  Print
adver.sing
templates

-  To
promote
the
launch
of
Sunrider
Pro
Program
–
Customizable
area
for

personal
contact
informa.on
and
price
point.

Full
Page
Ad
(color)
Half

Page
Ad
(color)
Full
Page
Ad
(color)

Sunrider
Pro
Marke.ng
Collateral

•  Print
adver.sing
templates

-  To
promote
the
launch
of
Sunrider
Pro
Program
–
Customizable
area
for

personal
contact
informa.on
and
price
point.

Full
Page
Ad
(color)
Half

Page
Ad
(color)

Sunrider
Pro
Marke.ng
Collateral

•  Eblast
templates

-  Sunrider
Pro
and
Fitness
Brigade
themed
-‐
Customizable
area
for
personal

contact
informa.on

Sunrider
Pro
Eblast
Fitness
Brigade
Eblast

Sunrider
Pro
Marke.ng
Collateral

l  In-‐store
promo.onal
ﬂyer
templates

-  Fitness
Brigade
themed
–
Customizable
area
for
personal
contact

informa.on.

Fitness
Brigade
8.5x11
ﬂyer

Sunrider
Pro
Marke.ng
Collateral

•  Banners

-  Fitness
Brigade
Standee
and
Hanging
Banner

2O
x
5O
hanging
banner

32in
x
71in
standee
banner

Sunrider
Pro
Marke.ng
Collateral

•  In-‐store
posters

-  Fitness
Brigade
lobby
poster
promo.ng
sign
ups

24x36
lobby
poster

Sunrider
Pro
Marke.ng
Collateral

•  Packaging
label

-  Comp
of
packaging
label

Product
label

Sunrider
Pro
Marke.ng
Collateral

•  Packaging
mock-‐up

-  Comp
of
packaging

Packaging
mock-‐ups

Sunrider
Pro
Marke.ng
Collateral

•  In-‐store
product
display

-  Comp
of
possible
display
look
with
Sunrider
Pro
products

Product
display

Website

Sunrider University – training website

Aha! Health and Wellness Capabilitiesv4

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