ActivChips By: Jordan, Louis, Robert, Tyrell, Seth

Product Description  ActivChips is a product of a novel technology called NSSL (Nano-sized self- assembled structured liquids)  Technology is a development of minute compressed micelles, which are called nanodrops.  Minute micelles serve as a liquid carrier, which allows penetration of healthy components (such as vitamins, minerals and phytochemicals) that are insoluble in water or fats.

Product Description (contd.)  The micelles are added to the food product, and pass through the digestive system effectively, without sinking or breaking up, to the absorption site.  The minute micelles carry the phytosterols to the large micelles that the body produces from the bile acid  The phytosterols enter the micelle, thereby inhibiting transportation of cholesterol from the digestive system into the bloodstream.  This advanced technology is unique to MNFC and is under a US Patent.

Points of Difference  ActivChips have characteristics that make it superior to competitive substitutes.  Frito-Lay has claimed a long standing commitment to health and wellness.  However, in addition to: Weight Management, Positive Nutrition, and Better Oils Strategy of Frito-Lay,  ActivChips uses nanotechnology and nanocomposites to create active, intelligent food which is therapeutic by design.

Positioning  ActivChips is a new intelligent and functional food.  It has no trans-fat, therapeutically lowers cholesterol.  It has been described by consumers as crispier, tastier and more attractive than other chips on the market.  ActivChips is to be positioned as a new snack with marketing, packaging and advertising concentrating on its functional properties.

Packaging Emphasize healthy image

Promotion Free Publicity ◦ New cholesterol-reducing technology ◦ First-to-Market Sunday Newspaper Inserts ◦ Upon product launch ◦ Induce consumers to try product Sponsor Sporting Events ◦ Focus on marathons ◦ Free logoed promotional items ◦ Use athlete as spokesperson All Advertising will Focus on Creating Healthy Image

Distribution Through Food Distributor  Buys our ActivChips  Warehouses it  Resells and Delivers on store-by-store basis:  Grocery retailers/Health food stores  Cub Foods  Kroger  GNC  Minnesota Foods will let our Distributor control physical distribution aspects of ActivChips.

Price SizeLay'sActivChipsDifference 12 oz $ 3.89 Classic $ 4.86 $ oz$ 3.99 Baked $ 4.65 $ oz$ ct $ $ 4.12

Market Segmentation Variables: ◦ Demographics:  Age: 30+  Both male and female ◦ Geographic Segmentation:  Average to higher income  A Social grade of C2 or higher  Average and higher end groceries

Market Segmentation ◦ Mediagraphic Segmentation:  Read the Paper, Radio, TV ◦ Behavioral Segmentation:  Aware and Informed consumers  Heavy and medium users  Consumers that want quality, status, service, and value-for the money  Medium to total loyalty status to product 37.13% or 101 million people in USA have high cholesterol

Segmentation Target Market Healthy 30+ age group New product buyers Active/sports Target market run off “feel good” snack

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