1 AMV/CALCIUM/OTHER SUPPLEMENTS DERIVED IMPORTANCE  Although each segment has a different mix of key motivators, key drivers across segments concern overall store experience, assortment and health and wellness expertise. Use version WITH Store brand attributes in it THIS WAS PAGE 38… IS THIS NOtE FOR US OR FOR HER?

2 STATED VS. DERIVED IMPORTANCE FOR AMV STORE SELECTION STATED IMPORTANCE DERIVED IMPORTANCE Adult Multi-Vitamins  Having a wide assortment of high-quality AMV products is essential to driving AMV shoppers to a store.  Hidden motivators for AMV include being a trusted health & wellness source and having a pleasant, easy-to-navigate environment and offer good customer service.  In AMV, low pricing & good deals are assumed benefits across VMS retailers. HIDDEN MOTIVATOR The store has good customer service (STORE)The store usually has available AMV I am looking for The store offers a pleasant shopping experience (STORE)The store carries high quality VMS The store I can trust for health and wellness information (STORE) The store makes it easy to find the AMV I am looking for (AMV) The store carries a variety of new and unique VMS (AMV) The store makes it easy to find the sections I want to shop (STORE) Is a store I can trust for health and wellness products (AMV) LESS IMPORTANT The store has good sales on VMS (AMV)The VMS are always in good condition (AMV) The store has low prices on all products (STORE) The store is located close to my home or workplace (STORE) The store has low prices for VMS (AMV) I shop there for other items (AMV) The store often has items on sale or special deal (STORE) The store lets me do all my shopping in one place (STORE) The store has a broad selection of brands, types and forms of AMV The store has wide mix of different departments to shop in (STORE) The store carries a variety of new and unique products (STORE) The store has a good 'frequent-shopper card' program (STORE) CONSCIOUS MOTIVATORS PRICE OF ENTRY DERIVED IMPORTANCE Relative to Supplements, the overall store is more critical in AMV. Use version WITH Store brand attributes in it

3 STATED VS. DERIVED IMPORTANCE FOR CALCIUM STORE SELECTION DERIVED IMPORTANCE STATED IMPORTANCE Calcium  Calcium shoppers appear motivated by desire for product choice: they desire breadth of selection of  high-quality, new and unique VMS, available in many brands, types and forms.  In Calcium, while “good sales” is a cost-of-entry benefit, the promise of “low pricing”  for VMS items attracts Calcium shopper to the store. Relative to other segments, Calcium is more about quality and diversity of product offerings. Use version WITH Store brand attributes in it

4 STATED VS. DERIVED IMPORTANCE FOR OTHER SUPPLEMENTS STORE SELECTION STATED IMPORTANCE DERIVED IMPORTANCE Other Supplements  Other Supplement shoppers demand more VMS expertise: they want a VMS retailer they can trust for health and wellness information, and to provide good customer service,  They seek high-quality products and a selection of new and unique items.  Unlike with other segments, “good sales” are particularly motivating to Other Supplement shoppers. Relative to other segments, retailer choice in Supplements is more about health and wellness expertise. Use version WITH Store brand attributes in it

STATED IMPORTANCE* SUMMARY OF EXTREMELY IMPORTANT BY SEGMENT BUYER GROUP 5  There are a number of characteristics that are more important to calcium buyers than they are to other buyers….notably price related and store image. Supp buyers share Calcium buyers low price interest – but more everyday low price than promotion. Q12a/13a * Attributes arranged in descending order of derived importance Stubs are WAY to wide…need to tighten up – can do as we have been doing – this and next few slides – make sure font size is consistent..insert lines to make easier to read

STATED IMPORTANCE * SUMMARY OF EXTREMELY IMPORTANT BY MULTIVITAMIN BUYER GROUPS 6  Store brand buyers are generally less likely to find any of the characteristics extremely important. On a relative basis they are move motivated by low prices (NOT deals) and retail availability of what they are looking for. OAD buyers are more interested than others in a pleasant shopping experience and a store that is easy to navigate. Q12a/13a * Attributes arranged in descending order of derived importance

7  TBD WILL CHANGE Q12a/13a STATED IMPORTANCE * SUMMARY OF EXTREMELY IMPORTANT BY CALCIUM BUYER GROUPS * Attributes arranged in descending order of derived importance

Key Findings Implications Opportunity Price/promotion To be chosen for VMS, a retailer must do at least these four things well... “Sales” will be most effective in Other Supps; “Low prices” in calcium. And AMV is not the segment In which to heavily promote. Role of price differs from segment to segment Assortment A maximized assortment will include premium products as well as value brands that are perceived as “high quality.” Leverage form innovations, across VMS but particularly in Calcium. Across VMS segments, shoppers seek high quality, new, and unique VMS. Heath & Wellness VMS expertise is not enough – Retailers must build credentials as partners in shoppers health and wellness pursuits Health and Wellness is a critical driver, especially in AMV. VMS shoppers seek a retailer that is a credible source of Health and Wellness information and of trustworthy products Overall Store Experience Customer service is # 1 (in both AMV and Other Supps) and among the top 10 drivers in Calcium.. Relationships with VMS shoppers extend beyond the modular. Corporate support is necessary for effective conversion strategies. 8

How Retailers Stack Up

Costco sets a gold standard in satisfying its VMS shoppers. Key customers have stiff competition from specialty retailers who dominate? In VMS. Overall Ranking Based on % Excellent/Very Good Costco1 Target2 Kroger3 Sam's4 Publix5 Whole Foods6 Walmart7 BJ's8 Walgreen's9 CVS10 GNC11 Vitamin Shoppe12 Rite-Aid13 Kmart14 VMS Ranking Based on % Excellent/Very Good Costco1 Whole Foods2 BJ's3 Sam's4 GNC5 Vitamin Shoppe6 Target7 Walgreen's8 CVS9 Publix10 Walmart11 Rite-Aid12 Kroger13 Kmart14 10

HOW RETAILERS STACK UP (ON MOST MOTIVATING ATTRIBUTES) (Among the Store’s Unconverted Shoppers) 12b.Now we would like you to rate the stores listed below on each of the following items. 13b. Now we would like you to rate the (AMV/Calc/Other Supps) section of the stores listed below on each of the following items. 11  Walmart is also relatively weak among...  To strengthen conversion, Walmart needs most to improve its image for providing good customer service and having health and wellness expertise. Impor- tance Rank Ensure VMS Level

(Among Current VMS (AM? Data ?) Shoppers) 12  Walmart is relatively weak on the most motivating driver of VMS retailer choice. Impor- tance Rank  Walmart is also relatively weak among...  To strengthen conversion, Walmart needs most to improve its image for providing good customer service and having health and wellness expertise. HOW RETAILERS STACK UP (ON MOST MOTIVATING ATTRIBUTES Ensure VMS Level

Top LeversRankTargetCostcoGroceryDrug Vitamin SpecialtyOnline Has good customer service 1 -- Carries a variety of new and unique VMS 2 +++=-- Is a trusted source of health and wellness products 3 ==+-- Carries high quality VMS 4 ==+=-- Is a trusted source for health and wellness information 5 +=+--++ Has available the VMS that I am looking for 6 ====-- Makes it easy to find the product 7 =====-- Good VMS sales = Makes it easy to find category Walmart’s Strengths and Opportunities (among total VMS shoppers) Add Walmart column in. Put in percents? Store brand atts should be missing from this perspective Need to do for Target, Walgreens & CVS

CVS Overview: Shopper Dynamics Brand Development (relative to key FDM competitors) One A DayM CentrumH Nature’s Bounty? Store BrandM Segment Development (relative to key FDM competitors) Adult MultisMH Kids MultisM CalciumM HeartM Probiotics M What differentiates a Drugstore VMS Trip? Quick trips (17-18 min) to nearby stores (less than 10 min away) Shoppers more likely to check for coupons look at circulars, and know the store for its sales. Shoppers more likely to be on a pharmacy trip (though still only a minority of time (20% vs. 15% across all stores)) What differentiates CVS shopper from Walgreens shopper More likely to use frequent shopper cards. More likely to be on pharmacy trip More likely to be engaged in digital activities as part of VMS trip.

CVS Overview: Shopper Dynamics Brand Development (relative to key FDM competitors) One A DayM CentrumH Nature’s Bounty? Store BrandM Segment Development (relative to key FDM competitors) Adult MultisMH Kids MultisM CalciumM HeartM Probiotics M What differentiates a Drugstore VMS Trip? Quick trips (17-18 min) to nearby stores (less than 10 min away) Shoppers more likely to check for coupons look at circulars, and know the store for its sales. Shoppers more likely to be on a pharmacy trip (though still only a minority of time (20% vs. 15% across all stores)) What differentiates CVS from Walgreens More likely to use frequent shopper cards. More likely to be on pharmacy trip.

Top LeversRankTargetCostcoGroceryDrug Vitamin SpecialtyOnline Has good customer service 1 -- Carries a variety of new and unique VMS 2 +++=-- Is a trusted source of health and wellness products 3 ==+-- Carries high quality VMS 4 ==+=-- Is a trusted source for health and wellness information 5 +=+--++ Has available the VMS that I am looking for 6 ====-- Makes it easy to find the product 7 =====-- Good VMS sales = Makes it easy to find category CVS Strengths and Opportunities (among total VMS shoppers) Add Walmart column in. Put in percents? Store brand atts should be missing from this perspective Need to do for Target, Walgreens & CVS

HOW VMS RETAILERS STACK UP (ON MOTIVATING ATTRIBUTES) (Shop Store for VMS P6M Among CVS Shoppers) 17

HOW RETAILERS ARE PERCEIVED (Among The Unconverted- Shop for Anything But Do NOT Buy VMS At Stores) 12b.Now we would like you to rate the stores listed below on each of the following items. 13b. Now we would like you to rate the (AMV/Calc/Other Supps) section of the stores listed below on each of the following items. 18  CVS shoppers who do NOT shop for VMS in the store apparently have fairly strong perceptions of the store as a place to shop VMS.

Overarching Retailer Insights Target shopper IS involved in the category, just not at Target. Need better link to H&W to convert more VMS shoppers. Walgreens is relatively strong where it counts. While no one owns the H&W white space, this retailer is best poised for the opportunity. Walmart needs to bring the VMS shopping experience up to par with rest of store. Strengths to leverage are in new/unique and findability.

Potential Synergies between Brand and Retailer Opportunities

21 VMS buyers went through a selection process to let us figure out what five specific factors drives their purchase decisions. The factors were: Store Brand Size Price/Promotion Loyalty overlay Consumers were shown a number of alternative types of purchases occasions. The stores that were shown to any respondent were limited to the stores in that respondent’s consideration set. They saw up to 12 scenarios at a time, and were asked to allocate 5 purchases across the featured alternatives (or if they would not, in fact buy ANY ) – EXAMPLE ON NEXT PAGE

22  What consumers saw….

23 SEGMENT MEMBERSHIP BY STORE BOUGHT VMS Q.6b/c

24 SEGMENT MEMBERSHIP BY BRAND BOUGHT Q.8

25 Seven Shopping Styles Different value-drivers for different shoppers. StyleExplanationSize (% of AMV Shoppers) More likely to shop More likely to buy More likely to be Product & Store Will pass up a deal/low price to get preferred Product at preferred Store. 22%WalmartOne-A-Day & SB 50+ adults (average education & income) Price & Store Switches between Products to get a good price at preferred Stores. 20%Walmart & Food Broad Line 35+ adults, less educated, lower income Price & Product Switches between Stores to get a good Price on preferred Products. 20%(No skews)Centrum married females, higher income Deal- focused Switches between Stores and Products to get a good Deal (sometimes passing up the lowest price). 12%Walgreens & Vit. Spec. (No skews) 35+ males (average education & income) Product- focused Stick with their preferred Product at whichever Store and Price. 9%TargetOne-A-Day & Centrum Under 35, higher income adults, with larger households Price- focused Switches between Stores and Products to get the lowest Price (sometimes passing up deals.) 9%CVS & Vit. Spec. Broad Line Under 50, kids in the house Store- focused Stick with their preferred Store and accept the product and price they get there. 7%Walmart & Walgreens Centrum Under 35, lower income and ethnically diverse

Back-up

27 MOST DIFFERENTIATING CHARACTERISTICS OF P6M VMS STORE SHOPPERS Walmart shoppers are more likely to spend more time, appreciate low prices and plan Food & Personal Care purchases...

28 MOST DIFFERENTIATING CHARACTERISTICS OF P6M VMS STORE SHOPPERS (Continued) Walmart shoppers are also less likely to use coupons, to stock up or to buy Calcium.

29 Under 5 minutes 5-9 minutes minutes minutes 25+ minutes Under 9 minutes minutes minutes minutes 40+ minutes Low everyday prices on all products Items on sale or special deal Don't know store's approach to pricing Over 25 None Enough for a few days Enough for more than a few days YesNo Base: 3507 Q.8b2 Thinking about the last time you purchased adult multivitamins at (INSERT MOST RECENT STORE FROM 6b/c), Please describe that shopping trip by checking ONE box for each characteristic below. PROFILE OF LAST ADULT MV SHOPPING TRIP Mean # of Minutes Create for Calcium & Supps

PROFILE OF LAST ADULT MV SHOPPING TRIP Among Total AMV Shoppers 30 I only had one brand in mind I had more than one brand in mind I didn't have any specific brand in mind Number of Brands ConsideredInformation Sources Utilized Checked for coupons Checked a store circular Made a shopping list Used a computer to get online information Used smart phone to get online information Health websites Product websites Retailer websites Shopping websites Talked to friend Talked to doctor/nurse Other Departments Planning To Shop In Base: 3507 Q.8a2 Please indicate which one of the following phrases best describes how mbrands you considered before making your most recent purchase of adult multivitamins. Q.8a3/a4 Which if of the following things did you do to help you make your most recent purchase of adult multivitamins? Which if of the following kinds of websites did you check to help make your most recent purchase of adult multivitamins? Q.8b1 Please think back to the circumstances of your most recent shopping trip when you bought adult multivitamins. Before getting to the store that day, in which of the following departments were you PLANNING to shop? Online 12%

PROXIMITY TO STORE 31 Under 5 minutes 5-9 minutes minutes minutes minutes Mean # of Minutes 10.9 Time spent To Get There: 25+ minutes Continued…

PROXIMITY TO STORE (CONTINUED) 32 Under 5 minutes 5-9 minutes minutes minutes minutes Mean # of Minutes 10.9 Time spent To Get There: 25+ minutes

33 DEMOGRAPHIC PROFILE

34 RELATIVE IMPORTANCE OF FACTORS Q.8 These numbers above explain % of variance. Red/green indicates statistically sig. differences vs. the complement group (which is not shown).

35 STORES PURCHASED VMS FROM MOST RECENTLY Q.6b/c

36 BRAND BOUGHT LAST Q.8

37 OVERALL EXPERIENCE OF STORE(S) SHOPPED IN P6M - Summary of Excellent - Q.4b/7b

38 TYPES OF VMS (OTHER THAN AMV) BOUGHT IN P6M Q.5a

39 TRIP SUMMARY

40 TRIP SUMMARY

41 SIZE OF THE SEGMENTS Deal Price Product & Price Product Store & Product Store & Price Store Those who bought AMV in Walmart past 6 Mos are more driven by the Store (alone and in combination with Price & Product) than Total AMV purchasers. Few shoppers are driven solely by Price and/or Deal, even among Walmart shoppers.

42 Seven Shopping Styles Total With each style, shoppers have different value-drivers.