1) Retailers that carry both the client's branded option (Diamond) and private label option (PVL) outperform retailers carrying only PVL on various sales measures. 2) At the household level, new buyers of Diamond and PVL are completely independent, with new Diamond buyers being 100% incremental. 3) PVL buyers prioritize price and convenience while Diamond buyers prioritize durability and quality. 4) Adding Diamond to a Northeast retailer's assortment doubled their cutlery sales. 5) The optimal category assortment is predominantly PVL with complementary Diamond items in select sizes.

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

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

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.
NEW BUYER FLOW -
5.12 5.12 6.89 6.89 DIAMOND
LOST BUYER FLOW -
DIAMOND
1.94 2.88
1.12 1.08 0.99 0.93 1.71 1.63 1.43 1.29
0 0
CATEGORY DIAMOND PVL OTHER BRAND CATEGORY DIAMOND PVL OTHER BRAND
9.25 9.25 9.17 9.17 NEW BUYER
FLOW - PVL
LOST BUYER
FLOW - PVL
2.66 2.73
1.68 1.39 1.03 1.09 1.56 1.61
1.11 1.20
0.00 0
CATEGORY DIAMOND PVL OTHER BRAND CATEGORY DIAMOND PVL OTHER BRAND
Source: Nielsen Homescan, July 2006 3

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
VS.
DIAMOND STORE BRAND 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%
4

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

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