Spread'em Inc. - Confidential1 EasySpread™ Butter Applicator Final Presentation PDT #4 December 2 nd, 2003 Final Presentation PDT #4 December 2 nd, 2003

Spread'em Inc. - Confidential2 Presentation Overview 1.Introduction of Spread’em CE Team 2.Product Description 3.Pre-Production Cycle 4.Production Cycle 5.Marketing 6.Final Design 7.Material Selection 8.Manufacturing 9.Lessons Learned 10.Questions?

Spread'em Inc. - Confidential3 Spead’em CE Team

Spread'em Inc. - Confidential4 Organizational Chart

Spread'em Inc. - Confidential5 Product Description

Spread'em Inc. - Confidential6 Production Description  EasySpread™ simplifies the storage and application of butter & other spreadable foods (peanut butter, cream cheese)  It is also convenient, affordable, easy & fun device to apply butter without the need of a knife

Spread'em Inc. - Confidential7 Pre-Production Cycle

Spread'em Inc. - Confidential8 Identifying Customer Needs  Based on interviews conducted, the most important customer needs are: Easy to useEasy to use PortablePortable DurableDurable SafeSafe Easy to CleanEasy to Clean

Spread'em Inc. - Confidential9 Preliminary Concepts

Spread'em Inc. - Confidential10 Issues Encountered Problem:  Butter left outside all day – melt all over  Must be microwavable  Too complex Corrective Action:  Design dispenser to be leak proof  No metal parts  Keep # of parts down

Spread'em Inc. - Confidential11 Production Cycle  Marketing  Final Design  Manufacturing  Marketing  Final Design  Manufacturing

Spread'em Inc. - Confidential12 MarketingMarketing

Spread'em Inc. - Confidential13 Marketing Segmentation BasisImportanceNotes DemographicHigh Students / Young professionals 20 to 35 years old PsychographicHigh Time – constraint lifestyle BehavioralMedium Multiple benefits in a single product GeographicLow Montreal as a test market

Spread'em Inc. - Confidential14 Target Markets  Primary market: Students and young professionalsStudents and young professionals  Secondary market: Parents with young childrenParents with young children Campers and outdoor loversCampers and outdoor lovers

Spread'em Inc. - Confidential15 Market Size Step Down Population of Montreal: 3.55 million Population of year-olds (21%): Number of Households (2.5 people/house): Potential Canadian market:

Spread'em Inc. - Confidential16 Marketing Mix - Product  Current Competitors:  Competitors’ main weaknesses: Not spreadableNot spreadable Not portableNot portable Not convenientNot convenient  EasySpread™ addresses all of the above issues!

Spread'em Inc. - Confidential17 Pricing Strategy  Penetration Pricing: - Low pricing initially to gain market shares Target Price Under 10$  Current Competitors: Butter Mate Pro US$10.49 Butter Spreader US$98.89 Ribbon Dispenser US$

Spread'em Inc. - Confidential18 Placement - Distribution Channels 1.Traditional Distribution  Target Retailers: Wal-Mart, Zellers, Canadian Tire, Loblaws ManufacturerWholesaler RetailerConsumer

Spread'em Inc. - Confidential19 2.Direct Distribution ManufacturerConsumer  Through Internet and telemarketing 3.Joint Venture With Dairy Producer Manufacturer Dairy Producer WholesalerRetailerConsumer

Spread'em Inc. - Confidential20 PromotionPromotion  Ensure EasySpread™ is placed next to dairy section Main Focus: Create awareness of product  Infomercials

Spread'em Inc. - Confidential21  Advertise in magazines targeted to young adults such as Maxim, FHM Unlike your wife, it never stops spreading. EasySpread™ by Spread’em Inc.  Advertise in magazines such as Camping Life to target secondary market

Spread'em Inc. - Confidential22 Final Design

Spread'em Inc. - Confidential23 Customer Needs  Easy to use  Portable  Durable  Safe  Easy to Clean

Spread'em Inc. - Confidential24 EasySpread™EasySpread™ Assembled Unassembled View Cap Grid Clear Round Body Guide Plate Screw Turning Dial Base

Spread'em Inc. - Confidential25 Material Selection

Spread'em Inc. - Confidential26 Plastic Characteristics  Food Safe Approved by Canada’s Health Packaging and Food Branch as well as the United States’ Food and Drug Administration for food packaging applicationsApproved by Canada’s Health Packaging and Food Branch as well as the United States’ Food and Drug Administration for food packaging applications  Low Cost  Mouldable  Durable  Lightweight  Microwavable  Recyclable  Transparent

Spread'em Inc. - Confidential27 High Density Polyurethane  HDPE meets all requirements  Supplier Nova ChemicalsNova Chemicals  Type of HDPE SCLAIR® 2712SCLAIR® 2712  Cost US $0.52 / lb.US $0.52 / lb. (HDPE) Plastic

Spread'em Inc. - Confidential28 ManufacturingManufacturing

Spread'em Inc. - Confidential29 ManufacturingManufacturing  Adopted DFM to minimize manufacturing cost while ensuring high product quality  Projected sales of units first year Only 120 units to be produced per dayOnly 120 units to be produced per day  To avoid high costs of buying tooling and machinery Outsource the manufacturing of parts to injection molding company HuskyOutsource the manufacturing of parts to injection molding company Husky Assemble the parts at our plantAssemble the parts at our plant

Spread'em Inc. - Confidential30 Cost Analysis  Unit Variable Cost – C$ 1.16  Selling Price – C$ 6.99  Break-Even Unit = $ / ($6.99 – $1.16) = units  Projected sales of units first year

Spread'em Inc. - Confidential31 Lessons Learned

Spread'em Inc. - Confidential32 Lessons Learned  Concurrent Engineering is necessary to develop a successful product  Communication is very important between team members  Project Management is critical to deliver product on time  Know your customer needs

Spread'em Inc. - Confidential33 Questions?Questions?