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Fairway Market10/1/12
2
1970s
1980s
1990s
2000s
2010s
Refreshment
Low Calorie
Benefit Healthy Functional
Evolution of the Functional Category
THE OLD CONSUMER(static or shrinking numbers)
THE NEW CONSUMER(high growth demographic)
• Seeks refreshment• Seeks flavor over function• Doesn’t think about negative health
affects• Seeks the lowest price possible
• Demands noticeable functional benefit• Demands Low Calorie• Demands positive, AND no negative health
affects• Seeks Premium products• Willing to pay more for products that meet
these criteria
The Consumer driven evolution of what a beverage should deliver
3
Neuro: Product Positioning & Usage Occasions
4
Point of Sale
Available profit drivers:
• Racks• Price Labels• Generic Static• Poster• Shelf Strip• Pallet Wrap• Push/Pull• Pallet Header• Pole Display• Glide Rail Stickers
POS Placement increases the profit story for every retailer:
• Ties the retailer into into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers
Max number of smart placements = Max retailer profit
5
The Profit Story
• Neuro is positioned to capture the strongest, fastest growing consumer trends• Neuro’s premium retail position delivers a significantly higher profit per
transaction• Neuro drives incremental category sales with a typical retail $1.00 higher than
similar offerings• Neuro drives multiple transactions increasing rings and driving category sales.• A typical single bottle Neuro transaction will deliver the same profit as selling 4
to 5 bottles of another enhanced unit
*If this enhanced water turns this
rack, it is 96 units @ approx $0.17/unit
Profit= $16.32
*When NEURO turns this rack, it
is 70 units @ approx $0.90/unit
Profit=$67.50
Neuro is leading the way in driving profit in the enhanced/functional spaces
Example Profit Study
2012 -2013 PRICING & OPPORTUNITIES
Neuro Pricing and Program Support.
Promotional Pricing- 2/$4
Digital - Neuro Bowling App - demo program / $0.50 coupon. Exclusive to Walgreens
Community Outreach or Charity Initiatives- Possibility to do End cap or power panel Programs with Community or Charity partnerships.
Pricing Structure Deal EDLP Net Unit Cost MSRP Penny Profit Margin
Everyday Off Deal $19,25 1.60 $2.79 $1.19 43%
Everyday Multiple Purchase Off Deal $19.25 1.60 2/$5 $0.89 36%Promotional Pricing Multiple
Purchase Deal $18.00 1.46 2/$4 $0.53 27%