ICS drives incremental volume through merchandising support activated by a partnership with retailers' Private Label brands.

1. Introducing
The next generation of Shopper Marketing partnership programs
Instant Combo Savings ®
Member of
2011

2. Introducing…Instant Combo Savings ®
ICS drives incremental volume through merchandising support activated
by a partnership with retailers’ complementary, non-competing Private
Label brands. Consumers receive significant savings driven by multiple
National brands
• Feature ad support in weekly circular
• Full page FSI in each retailer's key markets
• Guaranteed displays pre-authorized by retailer (75%+ compliance)
pre authorized
• Customary TPRs not required
• Category exclusivity
• National program customized at th account l
N ti l t i d t the t level
l
• Performance Guarantee or your money back!
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3. ICS delivers significant savings
• Your brand partnered with a complementary, non-competing
Private Label brand
• FREE offer*
• Shoppers redeem each offer individually
• Savings delivered instantly at checkout
*Assumes 25 – 35% savings for each offer
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4. ICS drives feature
support & consumer
attention
• Delivers high value
savings to the consumer
• 9-12
9 12 offers from multiple
National brands
• A Bonus savings program
attracts additional
attention by creating a
higher savings potential
• Shoppers receive Bonus
Savings when 3 or more
offers are redeemed.
Savings are doubled with
g
the bonus
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Weekly circular

5. ICS supports the
program with a full
page FSI
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6. ICS guarantees high levels of display compliance
• Executed through partnership displays
• Supported by the ICS Merchandising Network
– Pre-call
– Display building & signage placement
– Replenishment
p
Multi-shelf endcap
p Floor display
p y Refrigerated display
g p y Frozen display
p y
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7. ICS guarantees POS placement
• All stores receive signage for both Your Brand and Private Label
• Signage will be placed on display and at the shelf location for each brand
Shelf/soda department Shelf/chip department
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8. Category Exclusivity/Timing
• CPG brands receive category exclusivity for both National
Brand and Private Label competitors
• Each t il ’
E h retailer’s program i customized and 1 week i d ti
is t i d d k in duration,
tied to the retailer’s ad week
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9. Option: Corporate Event
ICS Corporate Events will drive 100% feature support and display
compliance of 75%+ for each participating SKU…more than twice the level
of typical FSI Corporate Campaigns*
Campaigns
• An ICS Corporate Event is dedicated to
your company
- Choose your theme
- Customize your bonus/overlay
- Minimum 9 offers
• Pricing upon request
* Source: March – May 2010, Safeway
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10. ICS is a turnkey program
• ICS Retailer Network is pre-authorized for displays and features ads
• ICS:
– Develops and secures approval of combo offers
– Produces all program elements
– Places FSI
– Coordinates program details with your National Account Managers
Projects volume lift
j
Informs Category Managers/helps close incremental sale
• ICS Merchandising Network sets displays and POS
• ICS prepares a post promotion evaluation (including performance
guarantee results)
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11. Timeline Flowchart
LOCs due
ICS presents offers to Retailers for approval
Retailers approve offers and advise Category Managers of program details
Countersigned LOCs returned to CPGs together with sales bulletins
for CPG account reps to discuss with their Category Managers
ICS begins program implementation
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12. Letters of Pre-Authorization
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13. Rollout Timetable
Phase Timing ICS Retailer Network Stores
1 2008-2009 2 Retailer Test COMPLETED
2 Cycle 11 (2010) Stop & Shop, Giant TEST IN PROCESS
Carlisle, Giant
Landover, Martin’s
3 (2011) Cycles 1 - 6 Ahold, Harris-Teeter,
Ahold Harris Teeter 1,675
1 675
Roundy’s, Save Mart,
Hy-Vee, Pathmark
4 (2011) Cycles 7 - 13 10 5,100
5 (2012) 2012 Food 13,300+ stores/Top 31
Drug 18,800+ stores/Top 3
Mass 2,800+ stores/Top 2
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14. ICS 2011 Cycles
Cycle 2 Cycle 3 Cycle 4 Cycles 5 & 6
LOC Commitment due 9/10 10/8 10/29 12/3
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15. ICS Retailer Network
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16. Program Investment
Cycles 1-6,, 2011
y
Participation Redemption
Media/Distribution Partnership Offer – CPG will be billed for face value
FSI (22.4mm)
(22 4mm) of partnership offer plus 5¢ h dli
f t hi ff l handling
POS
Circular (37.8mm) Bonus Offer – All participating CPG brands share in
Store Participation and the funding of the bonus offer – face value plus 5¢
Post Promotion Evaluation $ 49 handling
Merchandising/Production Clearing – Retailer submits electronic redemption
Merchandising services report directly to CPG or to CPG’s redemption agent
Print Production
Shipping $16
Total Cost Per St
T t l C t P Store $65
1,675
Total Cost $ 108,875
Performance Guarantee
If the program does not reach the agreed upon targets, ICS will rebate a portion of Media & Distribution costs
Note: 1. Grocery, Beverage or HBC products may incur an additional cost for corrugate display units or pallets depending on the retailer
1 Grocery pallets,
2. FSI runs Sunday prior to retailer’s ad week for their first 2 programs. Coverage is all markets where the retailer has 10% or more ACV share plus a minimum of 10 stores
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17. Performance Guarantee
If volume lift is less than 300%, you will receive a rebate on media/distribution costs
as follows:
Volume lift % Rebate %
201 – 300 25
100 – 200 50
0 – 99 75
NOTES:
O S
• Rebate will be calculated based on sales data provided by the retailer
• Performance guarantee is valid if the following conditions are met:
• There is no promotion support (TPR, feature ad, display) during the 2 weeks prior
to the ICS program
p g
• There are no out of stocks or interruption of product supply at the manufacturer or
retailer level
• There are no recalls or adverse publicity in effect
• First time participation by CPG
p p y
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18. ICS Multiple Participation Discount
Discounts are based on the number of participations within one program.
Participation must include all retailers in the ICS Network
Number of Media/Distribution
Participations Cost Discount
2 25%
3 35%
4+ 45%
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19. Promotional Comparison Display
High
Sampling
FSI
+
TPR
TPR
Margin Margin
Low
L High
Hi h
FSI
In-Store Coupons
Catalina
Display In-Store Media
Size of Circle = Volume Low
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20. ICS Recap
Announced with feature ad Broad consumer reach builds program awareness. Multiple FREE
& FSI offers engages Shoppers
Pre-Authorized Displays 75%+ compliance/significantly higher than most programs
Category Exclusivity Blocks both National Brand and Private Label competitors
Partner with Private Label Retailers have vested interest in program’s success
Strong ROI Promoting at everyday price protects brand equity Strong
equity.
promotion lift drives both 1 week incremental volume & permanent
gains in base volume
Turnkey Requires less of your time
ICS Merchandising Set-up for each retailer based on their in-store merchandising
Network practices
Performance Guarantee If we don’t reach the volume lifts projected for your brand, we will
rebate you a portion of the media/distribution cost.
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21. Next Steps
• Discuss details related to your participation
• Identify participating brands/packages
• Confirm category availability
• Identify related item categories
• Review ICS Master Services Agreement
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22. The next generation of Shopper Marketing partnership programs
Instant Combo Savings ®
Instant Combo Savings
182 Howard Street, #005
San Francisco, CA 94105
Member of
T (415) 788-3838 ext. 401
F (415) 366-8220
www.InstantComboSavings.com
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