2Majed Alansari

Abdulla FoolathChris HagedornPeyton Lambert

Charles ShellyYaser ZamanB A

Agenda Situation analysis Competitive situation Targeting OB/GYN segment Sales & Marketing

recommendations Financial Forecasts

SituationalAnalysis

Team B2ASWOT Analysis – Zeltiq/Coolsculpting Strengths

Solid financial position Excellent product – Patented, FDA

cleared, high satisfaction levels Non-surgical fat reduction procedure

with no downtime

Subscription-based usage provides steady cash flows

Effective salesforce, marketing and training programs

Weaknesses Limited brand recognition, but

growing faster than competition (Around 30%)

Operation is not covered by insurance

Opportunities Growing markets domestically and

globally Expansion into new segments e.g.

OB/GYN Expansion into new global markets that

are less saturated e.g. Middle East Product can be developed to achieve

shorter procedure times, and cover more parts in the body

Threats Highly competitive and saturated

markets can lead to slow sales Other non-invasive technologies

entering the market are catching up with CoolSculpting features

Losing price-setting power

Company/Market Product

CompetitiveSituation

Team B2AThe non-invasive fat reduction Market

72%

28%

CoolSculpting Competition

U.S. Body Sculpting Market

CoolSculpting is the market leader in non-invasive fat reduction segment.

Great opportunity to capture growing demand: Shift from invasive to non-invasive treatments

in many segments (anti-aging, fat reduction, etc.)

Increasing number of male patients Global medical aesthetics market is

expected to reach $12.6 billion in 2020, at 10.8% CAGR

Global Non-invasive Market

Impressive CAGR~27%

(2016-2020)

5th most

popular cosmetic

procedure

After Botox, laser hair removal, fillers etc.

Male patients

Global Market Trends

Team B2ACloser look at competitors Vanquish

(BLT Industries)Liposonix

(VRX)UltraShape (Syneron Medical)

CoolSculpting(Zeltiq)

Technology Radiofrequency waves Radiofrequency energy to heat and kill fat cells Ultrasound Controlled Cooling

Perception by customers (practitioners)

Same results

Easier to use (no touch), require fewer treatments, covers wider treatment

areas.

Cheaper, better pricing system (no per use fees)

Less pain/discomfort

Hurts too much, but performs better at precision targeting

4 out of 5 doctors prefers CoolSculpting

over it

Didn’t produce same results as Vanquish and

CoolSculpting

Good results, but can be fluctuating between different practitioners

Low recognition by end users

Strong results

Effective and responsive salesforce, strong marketing and training programs (CS

University)

Recognized brand

Sessions take longer times

Perception by end consumers(realself.com)

67% worthwhile rating 67% worthwhile rating 88% worthwhile rating 83% worthwhile rating

Brand awareness Less than 10% N/A Less than 10% Nearly 30%

Threat level Medium-High Low Low

ThreatsCompetitors are improving

Some competitors can gain advantage by offering cheaper, faster, more comfortable,

solutions which also covers more body areas

Losing price setting power Lower priced alternatives (with no per use fees) are entering the non-invasive market

Slow growth Saturated markets, availability of cheaper

alternatives, and high prices can slow sales

OpportunitiesFocus on R & D

Catch up with some competitors and reduce treatment time, increase the productivity of the

device, as well as cover more body areas.

Expand the pieStay ahead of competition and reach new markets (type, geographic) with our active

salesforce and marketing program

Strengthen the brand More B2C to make the product the #1 trusted

choice for end consumers, the stronger the brand the more likely practitioners will select it

among alternatives

Team B2ACompetitive Threats (and Opportunities)

TargetingOB/GYN

Team B2ASWOT Analysis – Targeting OB/GYN segmentStrengths

Always around our potential end customers (Post-delivery)

Intimate relationship with their patients – well established trust

Available in every town, every market

Weaknesses Low-medium frequency of visits Usually understaffed and

overwhelmed – short appointments Only see female patients Usual clientele, marketing to new

customers can be challenging

Opportunities CoolSculpting provides a new

revenue stream to OB/GYNs (High operating margins which reach 60%)

It’s possible to reach new clients through offerings outside of OB/GYN domain – 60% of Americans are considering aesthetic treatments

Can target accompanying males (husbands)

Threats Marketing to new practitioner

segments can disappoint early adaptors (plastic surgeons) as this will affect their sales potential

Some OB/GYNs could be reluctant to risk current and future relationship with their patients in case they were not happy with the new fat-reduction offering

Team B2AValue and competitive differentiation

1 Considered an out patient procedure

Skin and surrounding area stay safe

High patient satisfaction FDA approval for abdomen,

flank, thigh, and chin Only needs oversight from

Medical professional

• Will allow patient to have alternative to Liposuction, which is a surgical procedure

• Allows patient to continue their lifestyle immediately

• Won’t take doctor out of the office• Can be done by non-medically

trained professional

Non-Invasive Surgery 2 • Expands your procedural

offerings • Allows you to become the one

stop shop for your patients

• New procedural offering giving your patients more options

• The new offering will give you another form of revenue to drive your cash flows

• New patients average four cycles and normally add one to two more Completes

the “mommy

makeover”

Team B2AValue and competitive differentiation

3 • Zeltiq continues to add area applicators and improve procedure time

• CoolSculpting University • Co-Op marketing

• Your patients will be coming back for more cycles at a faster procedure time

• Continue to innovate with new treatment areas

• Give best practices in terms of Marketing your procedures and practice, Training, Sales

• Can be reimbursed up to 50% of Marketing costs

Continued Growth

and Help from Zeltiq

Team B2ATargeting our customers

Team B2ATargeting our customers

Western Region

Team B2APositioning Statement Who?

TargetCosmetic OB/GYN who perform vaginoplasty

within the Western Region (AZ, CO, NV, NM, UT, CA, OR, WA) where the highest percentage

of liposuction procedures performed

What?Frame of Reference

A non-invasive procedure (CoolSculpting) allowing

the complete post pregnancy makeover

(35-55 years old)

Why?Point of Difference

Proof?Reasons to Believe

Additional revenue through new procedure that aligns with

current offering

$260,000 average additional practice revenue for a CoolSculpting provider

Co-op Marketing program to strengthen your brand

Following our proven Marketing Methodology we will reimburse 50% of your marketing costs

Shorter procedural time allows for more patients to be seen

Average procedure last 45 minutes compared to liposuction (1-2

hours)

Through training at CoolSculpting University sales

potential can increase

CoolSculpting University graduates saw an increased patient

treatments by 60%

Sales and MKTRecommendations

Team B2ASales Strategy

Channel Selection Use current direct sales

team (Senior Area Sales Manager, Area Sales Manager and Practice Development Manager) but assign team members to Cosmetic OB/GYN market within their geographic territories

Women salesforce allows ease when entering into a women-only OB/GYN market

How to sell? Sell product as add-on to

current procedures “Mommy makeover” Increase OB/GYN revenue

260k Increase current salesforce

tenacity by potentially making payment structure more commission based

Saleswomen need to visit practices and develop relationships w/ Dr. or Office Manager

Team B2AMarketing and Promotions Use or implement marketing automation tool such as Marketo or Eloqua to supplement Salesforce/SAP

Industry-specific One-pager and Whitepapers allows for education of OB/GYN customers

Should be added to Zeltiq website and tracked when downloaded

Can also be emailed to potential customers and tracked

SEO/SEM marketing to “pull-in” cosmetic OB/GYN’s and generate interest

Attend Conferences

2nd international Conference for Cosmetology and Cosmetic Gynecology, ISCG World Conference X, OB/GYN Nursing Conference, COGI, ACOG, etc.

Create CoolSculpting Ad for OB/GYN’s to be emailed and put in magazine

Cosmetic Surgery Times, Contemporary OB/GYN, etc.

Team B2AAd example

Bring sexy back after having a baby We help transform your body with the coolest way to lose fat – No pain, surgery or downtime.

Ask your OB/GYN doctor today!

Team B2AImplementation / Launch

Pre-launch LaunchFirst 6 months

Post-LaunchFirst 18 months

Build list of Cosmetic OB/GYN practices within sales territory

Create and educate female salesforce on cosmetic OB/GYN market

Establish a cross-functional team to expand OB/GYN market (include sales and marketing members)

Create promotional marketing material (one-pagers, fliers, whitepapers, etc.)

Make CoolSculpting ad in OB/GYN mag

Attend conferences

Direct salesforce uses marketing automation tool to reach OB/GYN practices and gauge interest on adding CoolSculpting

Call and email offices to speak to Office Manager or Doctor in charge of adding programs

Set meetings and visit clinics

Establish CoolSculpting U for areas and invite cosmetic OB/GYN’s to view demonstration and discuss benefits

Focus on sales a customer service to increase customer satisfaction and retention

Be weary of oversaturation of markets

Expand to other cities using our target recommendation

Focus on upselling every add-on to the machine

FinancialForecasts

Team B2AU.S. OB/GYN Market Information

Change in demand2010-2020 10% or more 3% to 9% – 2% to 2% – 3% to –9% – 10% or less

Currently, there is a total of 20,090 OB/GYN practitioners in the USA. Out of the those, 23% (4,680) practice in the Western Region.

Demand for OB/GYN in the United States is expected to increase by 6% from 2010 to 2020.

A ratio of 27.1 OB/GYNs to 100,000 Females needs to be sustained to fulfil women’s health requirements.

Study also suggested that there needs to be at least 50,000 Ob/Gyns to cover 364 million population.

Team B2ACoolSculpting Product Development (Western USA)

CooSculpting is offered in 14 OB/GYN Clinics the Western Region.

Total Revenue growth for the Western Region was 478% from Q1’2015 to Q2’2016.

#of procedures in the Western Region increased from 81 in Q1 ‘2015 to 807 procedures in Q2 ‘ 2016

Q1' 2014 Q2' 2014 Q3' 2015 Q4' 2015 Q1' 2016 Q2 ' 2016 -

100

200

300

400

500

600

700

800

900

# of Cool Sculpting Procedures

# of

pro

cedu

res

Western Region

Team B2AMarket Penetration Forecast (5 Years)

Market Penetration 2017 2018 2019 2020 2021

Women Population (Age 30 to 55) Western United States

20,147,064 20,301,955 20,458,036 20,615,317 20,773,808

OB/GYN Forecast based on (27.1/100,000 Ratio) 5,460 5,502 5,544 5,587 5,630

Average Revenue Per OB/GYN 15,400 15,400 15,400 15,400 15,400

Expected OB/GYN Market Share 0.5% 0.75% 1.00% 1.25% 1.50%

Expected # of OB/GYN that will distribute CoolSculpting

27 41 55 70 84

Total Forecasted Revenue (WESTERN REGION) 420,409 635,461 853,796 1,075,450 1,300,461

Growth   51% 34% 26% 21%

2B AThankYou