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Shopper Marketing
              Starts At Home

Marketing    Profiling    Targeting    Mapping     Monitoring   Metrics




               Front-Door Media and Marketing Solutions
                       Capabilities Presentation



                                                                          1
Executive Summary
PowerDirect would like to demonstrate how front-door marketing can:
   – Be an integral part of a robust shopper marketing program
   – Reach and engage consumers through an uncluttered
     environment at an early point in the path-to-purchase
   – Be used as a sampling & couponing vehicle to drive trial and
     repeat sales
   – Connect consumers, marketers and retailers using precise
     targeting, shopper insights and motivating incentives distributed at
     home with a high impact media vehicle



                                                                            2
Today’s Path to Purchase
PowerDirect provides access to and engages consumers where
    they are making key shopping decisions — at home.




                                                             3
New Consumer Buying Habits
        Nearly 40% of shoppers make their brand-buying decisions before
                             they get to the store1

           More than 95% of shoppers make lists and plan their purchases
                             before they enter a store1

                    83% of consumers make purchase decisions at home2
         Coupon redemptions are up nearly 20% from two years ago, and
        40% of consumers align their lists with coupons they have in hand3

Source: 1 GMA, Booz & Co, and SheSpeaks 2009 Shopper Marketing 3.0
        2 Information Resources International October 2009 Times & Trends Report
        3 couponinfonow.com



                                                                                   4
Front-Door Marketing

“A highly specialized and measurable discipline that uses creative,
precisely targeted media to reach and engage consumers through
    one of the last uncluttered environments — their front door.”




                                                                      5
Features and Benefits
                 of Front-Door Marketing

    — Features —                           — Benefits —
•   Highly targeted medium             •   Reaches best prospects
•   Solo delivered                     •   Uncluttered setting
•   “Must-touch” interactivity         •   Category exclusivity
•   High visibility “mini-billboard”   •   Immediate message delivery
•   High production quality            •   Measurable results (ROI)
•   Creative flexibility               •   Branding and direct response
                                           vehicle

                                                                          6
Front-Door Marketing can help CPG Companies
• Reach a precisely-defined audience in their homes, early in the decision process
• Allow brands to deliver customized tie-ins with specific retailers in specific markets
• Capitalize on consumers’ responsiveness to promotional offers

   Consumer Marketing Objectives                 Trade Marketing Objectives
 • Reach new users                             • Gain new distribution
 • Hold and load current users                 • Secure retailer support (e.g. feature
 • Increase product usage                        pricing and display)
 • Trade consumers up                          • Build (or reduce) trade inventories
 • Reinforce brand advertising                 • Improve trade relations
 • Introduce new products



                                                                                           7
Higher Coupon Redemption than FSI’s or Newspaper
                                                Average Redemption Rates by Media Type for Offers Distributed in 2010
                                                                                        Grocery                         HBC
                                                                                2010    Middle – Half Range   2010    Middle – Half Range
                                                    Free Standing Insert        0.9%        0.4% - 1.2%       0.4%        0.2% - 0.5%

      *Front-door                                         Newspaper             0.7%        0.3% - 0.6%       0.5%        0.4% - 0.5%

 distributed coupons                                       Magazine             1.1%        0.4% - 1.4%       0.6%        0.2% - 0.6%
  are combined with                                       Direct Mail           3.5%        0.5% - 3.1%       1.9%        0.3% - 2.6%
 “All Other Handouts                                   Regular In-Pack          4.2%        2.0% - 5.3%       4.9%        0.8% - 5.7%
  Away from Store”.                                   Regular On-Pack           5.7%        1.0% - 7.3%       2.45        1.0% -1.8%
       Front-door                                    In-Pack Cross-Ruff         2.1%        0.7% - 1.9%       15.4%     10.2% - 15.0%
  distributed coupon
                                                       Instant On-Pack          23.5%      7.7% - 35.1%       20.0%      0.2% - 33.3%
    response rates
                                                Instant On-Pack Cross-Ruff      8.2%       1.1% - 11.5%       7.5%        1.6% - 8.0%
 have been reported
  as high as 20% by                                 On-shelf Distributed        8.8%       2.6% - 10.7%       8.3%       1.5% - 10.3%

      PDM clients.                          Handout Electronically Dispensed    8.0%        2.6% - 8.4%       8.0%        1.4% - 7.3%
                                                All Other Handouts In-Store     3.1%        0.6% - 2.8%       2.0%        0.4% - 1.8%
                                          All Other Handouts Away from Store*   2.5%        0.5% - 2.3%       1.7%        0.4% - 1.5%
                                                   Internet Home Printed        16.6%      8.5% - 22.2%       12.8%      2.4% - 18.15
                                                            Military            11.1%      1.0% - 15.1%       5.3%        0.6% - 2.25


Source: NCH Marketing Services, Inc., Coupon Facts Report, 2011
                                                                                                                                            8
9
Combining Out-of-Home with In-Store
Front-Door Marketing campaigns can carry thematic content
    that can be reflected in-store for maximum synergy




 Front-Door Media delivered   In-store point-of-purchase   In-store floor graphics
  to the home (with product            materials
   samples and/or bounce-
        back coupons)

                                                                                     10
Meet
     — Front-Door Media and Marketing Services —
                 — Founded in 2001 —
          — Category pioneer and innovator —
 — 2010 Inc.’s 500 | 5000 List of Fastest-Growing Private
                Companies in America —
   — Over 1,300 campaigns produced and delivered —
       — Extensive CPG and retail background —
— Preferred partner for nation’s top brands and agencies —
             — North American distribution —
                                                             11
Preferred and trusted by
  top national brands




                           12
Front-Door Media Products



PowerHangers™      PowerShopperTM   PowerPersonalization™     PowerSamplingTM
   Specialty        Co-Op Polybag    Online Lead Generation   Sample and Coupon
Front-Door Media       Program                                     Delivery




                                                                                  13
The “Science” of Front-Door
              Marketing
“Tightly integrated blend of marketing expertise, proven direct-
    response methodologies, leading-edge monitoring and
                       campaign metrics.”



        This combination is unique to PowerDirect


                                                                   14
Marketing
 We create dynamic front-door campaigns.
       — Front-door marketing strategy —
   — Creative consulting (copy, design, offer) —
Integration with client brand positioning and other media
            — Promotional ideas —
              — Partnerships —
      — Dynamic testing recommendations —

                                                            15
Methodologies
   Profiling I Targeting I Mapping
Sophisticated geo-demographic and behavioral segmentation
  — Identifies ideal customer demographic and profile —




      Only quality data and segmentation sources
           Nielsen Claritas I Experian I MRI

                                                            16
Methodologies
      Profiling I Targeting I Mapping




— Block-group analysis and targeting to identify best customers —


                                                                    17
Methodologies
Profiling I Targeting I Mapping

                 — Visualizing market coverage —
                   — Precise area mapping —




                                                   18
Monitoring
During Campaign I Post Campaign




 — Geo-targeting and mapping with Google Earth —

                                                   19
Monitoring
During Campaign I Post Campaign




     — PowerTrakker (client extranet) —

                                          20
Monitoring
      During Campaign I Post Campaign

   Independent phone surveys indicate that consumers report:
           — High recall of receipt of a direct-to-door ad —
— Strong recall and comprehension of marketer’s message and offer —
             — High intent to purchase/act on the offer—




                                                                      21
Metrics
Because our media is trackable, we can help you measure:

            — Cost per coupon redeemed —
             — Coupon redemption rate —
               — Samples distributed —
               — Incremental traffic —
              — Purchase frequency —
             — Average purchase size —


                                                           22
Case Study: De Waffelbakkers Frozen Pancakes

Client: Janssen & Meyer (De Waffelbakkers frozen pancakes)
Goal of Program:
•   Support frozen pancake product launch with a highly targeted, front-door distributed
    coupon/door hanger designed to engage consumers with a quality brand experience
    and drive trial at retail

Program Highlights:
•   PowerDirect targeted upscale, health-conscious consumers,
    in specific trading areas in close proximity to stores carrying
    the brand
•   Free trial, perforated coupon included in a unique die-cut door
    hanger design
•   Program exceeded client’s coupon redemption objective

                                                                                           23
Shopper Marketing
              Starts At Home

            Thank You! Questions?
Marketing   Profiling   Targeting   Mapping   Monitoring   Metrics

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Shopper Marketing Starts At Home

  • 1. Shopper Marketing Starts At Home Marketing Profiling Targeting Mapping Monitoring Metrics Front-Door Media and Marketing Solutions Capabilities Presentation 1
  • 2. Executive Summary PowerDirect would like to demonstrate how front-door marketing can: – Be an integral part of a robust shopper marketing program – Reach and engage consumers through an uncluttered environment at an early point in the path-to-purchase – Be used as a sampling & couponing vehicle to drive trial and repeat sales – Connect consumers, marketers and retailers using precise targeting, shopper insights and motivating incentives distributed at home with a high impact media vehicle 2
  • 3. Today’s Path to Purchase PowerDirect provides access to and engages consumers where they are making key shopping decisions — at home. 3
  • 4. New Consumer Buying Habits Nearly 40% of shoppers make their brand-buying decisions before they get to the store1 More than 95% of shoppers make lists and plan their purchases before they enter a store1 83% of consumers make purchase decisions at home2 Coupon redemptions are up nearly 20% from two years ago, and 40% of consumers align their lists with coupons they have in hand3 Source: 1 GMA, Booz & Co, and SheSpeaks 2009 Shopper Marketing 3.0 2 Information Resources International October 2009 Times & Trends Report 3 couponinfonow.com 4
  • 5. Front-Door Marketing “A highly specialized and measurable discipline that uses creative, precisely targeted media to reach and engage consumers through one of the last uncluttered environments — their front door.” 5
  • 6. Features and Benefits of Front-Door Marketing — Features — — Benefits — • Highly targeted medium • Reaches best prospects • Solo delivered • Uncluttered setting • “Must-touch” interactivity • Category exclusivity • High visibility “mini-billboard” • Immediate message delivery • High production quality • Measurable results (ROI) • Creative flexibility • Branding and direct response vehicle 6
  • 7. Front-Door Marketing can help CPG Companies • Reach a precisely-defined audience in their homes, early in the decision process • Allow brands to deliver customized tie-ins with specific retailers in specific markets • Capitalize on consumers’ responsiveness to promotional offers Consumer Marketing Objectives Trade Marketing Objectives • Reach new users • Gain new distribution • Hold and load current users • Secure retailer support (e.g. feature • Increase product usage pricing and display) • Trade consumers up • Build (or reduce) trade inventories • Reinforce brand advertising • Improve trade relations • Introduce new products 7
  • 8. Higher Coupon Redemption than FSI’s or Newspaper Average Redemption Rates by Media Type for Offers Distributed in 2010 Grocery HBC 2010 Middle – Half Range 2010 Middle – Half Range Free Standing Insert 0.9% 0.4% - 1.2% 0.4% 0.2% - 0.5% *Front-door Newspaper 0.7% 0.3% - 0.6% 0.5% 0.4% - 0.5% distributed coupons Magazine 1.1% 0.4% - 1.4% 0.6% 0.2% - 0.6% are combined with Direct Mail 3.5% 0.5% - 3.1% 1.9% 0.3% - 2.6% “All Other Handouts Regular In-Pack 4.2% 2.0% - 5.3% 4.9% 0.8% - 5.7% Away from Store”. Regular On-Pack 5.7% 1.0% - 7.3% 2.45 1.0% -1.8% Front-door In-Pack Cross-Ruff 2.1% 0.7% - 1.9% 15.4% 10.2% - 15.0% distributed coupon Instant On-Pack 23.5% 7.7% - 35.1% 20.0% 0.2% - 33.3% response rates Instant On-Pack Cross-Ruff 8.2% 1.1% - 11.5% 7.5% 1.6% - 8.0% have been reported as high as 20% by On-shelf Distributed 8.8% 2.6% - 10.7% 8.3% 1.5% - 10.3% PDM clients. Handout Electronically Dispensed 8.0% 2.6% - 8.4% 8.0% 1.4% - 7.3% All Other Handouts In-Store 3.1% 0.6% - 2.8% 2.0% 0.4% - 1.8% All Other Handouts Away from Store* 2.5% 0.5% - 2.3% 1.7% 0.4% - 1.5% Internet Home Printed 16.6% 8.5% - 22.2% 12.8% 2.4% - 18.15 Military 11.1% 1.0% - 15.1% 5.3% 0.6% - 2.25 Source: NCH Marketing Services, Inc., Coupon Facts Report, 2011 8
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  • 10. Combining Out-of-Home with In-Store Front-Door Marketing campaigns can carry thematic content that can be reflected in-store for maximum synergy Front-Door Media delivered In-store point-of-purchase In-store floor graphics to the home (with product materials samples and/or bounce- back coupons) 10
  • 11. Meet — Front-Door Media and Marketing Services — — Founded in 2001 — — Category pioneer and innovator — — 2010 Inc.’s 500 | 5000 List of Fastest-Growing Private Companies in America — — Over 1,300 campaigns produced and delivered — — Extensive CPG and retail background — — Preferred partner for nation’s top brands and agencies — — North American distribution — 11
  • 12. Preferred and trusted by top national brands 12
  • 13. Front-Door Media Products PowerHangers™ PowerShopperTM PowerPersonalization™ PowerSamplingTM Specialty Co-Op Polybag Online Lead Generation Sample and Coupon Front-Door Media Program Delivery 13
  • 14. The “Science” of Front-Door Marketing “Tightly integrated blend of marketing expertise, proven direct- response methodologies, leading-edge monitoring and campaign metrics.” This combination is unique to PowerDirect 14
  • 15. Marketing We create dynamic front-door campaigns. — Front-door marketing strategy — — Creative consulting (copy, design, offer) — Integration with client brand positioning and other media — Promotional ideas — — Partnerships — — Dynamic testing recommendations — 15
  • 16. Methodologies Profiling I Targeting I Mapping Sophisticated geo-demographic and behavioral segmentation — Identifies ideal customer demographic and profile — Only quality data and segmentation sources Nielsen Claritas I Experian I MRI 16
  • 17. Methodologies Profiling I Targeting I Mapping — Block-group analysis and targeting to identify best customers — 17
  • 18. Methodologies Profiling I Targeting I Mapping — Visualizing market coverage — — Precise area mapping — 18
  • 19. Monitoring During Campaign I Post Campaign — Geo-targeting and mapping with Google Earth — 19
  • 20. Monitoring During Campaign I Post Campaign — PowerTrakker (client extranet) — 20
  • 21. Monitoring During Campaign I Post Campaign Independent phone surveys indicate that consumers report: — High recall of receipt of a direct-to-door ad — — Strong recall and comprehension of marketer’s message and offer — — High intent to purchase/act on the offer— 21
  • 22. Metrics Because our media is trackable, we can help you measure: — Cost per coupon redeemed — — Coupon redemption rate — — Samples distributed — — Incremental traffic — — Purchase frequency — — Average purchase size — 22
  • 23. Case Study: De Waffelbakkers Frozen Pancakes Client: Janssen & Meyer (De Waffelbakkers frozen pancakes) Goal of Program: • Support frozen pancake product launch with a highly targeted, front-door distributed coupon/door hanger designed to engage consumers with a quality brand experience and drive trial at retail Program Highlights: • PowerDirect targeted upscale, health-conscious consumers, in specific trading areas in close proximity to stores carrying the brand • Free trial, perforated coupon included in a unique die-cut door hanger design • Program exceeded client’s coupon redemption objective 23
  • 24. Shopper Marketing Starts At Home Thank You! Questions? Marketing Profiling Targeting Mapping Monitoring Metrics