Copyright © 2004 Information Resources, Inc. Confidential and proprietary. Changes in Attitude: The Why Behind the Buy

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 2 Survey Responses + Purchasing Data for the same household AttitudeLink AttitudeLink Brings Everything Together! Product and Marketing Activity Individual Attitudes & Preferences Household Purchasing

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 3 Limitations of Traditional Consumer Surveys  Consumers' ability to recall past purchases is notoriously inaccurate  No way to track respondents' behavior over time  No accurate way to capture product quantity used, price paid, and related information for profitability assessments Individual Attitudes and Preferences The Why Behind the Buy Individual Attitudes & Preferences

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 4 AttitudeLink acts as a magic phonebook  Survey IRI panelists via:  Combine survey responses with same- household purchasing data and other facts about each household Bar-coded survey by mail - via IRI's monthly panelist newsletter Phone Paper-and-pen survey by mail Internet The panelist newsletter includes ScanKey usage tips, reminders about the points rewards system, and other information of interest to panelists.

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 5 Attitude Link provides insights across the organization… Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 6 Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions Attitude Link provides insights across the organization…

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 7 Case Study 1: Gain competitive advantage “The food’s gone but the container lives on…” Situation analysis:  Second Life’s competitor introduced new packaging solution for an existing product  Research and evaluate competitive performance Business issues:  What drives the product success?  How can Second Life leverage the learning and develop a better product? IRI solution:  AttitudeLink survey targeted triers and repeat buyers of the competitive brand

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 8  Triers “only buy it when on sale”  Repeat buyers liked the new packaging : “it helps to preserve great taste”, “retains freshness”, “I can re-use the container”  Product taste and quality received high ratings  Price did not meet consumer expectations  More of an issue for triers Gain competitive advantage Findings

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 9 Results & Recommendations  Container re-sealabilty and its uses after the food is gone contribute most to customer satisfaction  Second Life should invest in new re-sealable package  Co-promote with recognized packaging company Gain competitive advantage Second Life introduced new packaging in 2004 Annual sales up 34% Category sales up 4% Package is the new standard in the category

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 10 Price Attitude Link provides insights across the organization… CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 11 Case Study 2: Brand Differentiation “ Ammunition in the “Healthy Heart” Competition…” Situation analysis:  Category with two identical products  HeartBeat owns 1/3 of market share while its leading competitor, Good Faux You, owns close to 2/3 Business issues:  Why are consumers choosing Good Faux You over Heartbeat?  What can Heartbeat do to increase market share?  Are there any opportunities missed by both companies? IRI solution:  AttitudeLink survey compared category usage and attitudes among both HeartBeat and Good Faux You buyers

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 12 Category usage reasons  Eat healthier/dieting  Recommendation by doctor or family  Coupon/promotion to try Product usage  On its own (both brands)  As an Ingredient in recipes  Food additive Brand differentiation – Good Faux You (2/3 market share)  Health benefits are listed on competitive product’s packaging  Competitor’s website points out additional options for use Brand Differentiation Findings >Good Faux You

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 13 Recommendations Brand Differentiation  Educate consumers on new ideas for Heartbeat usage through advertising, website and other marketing activities. Focus on driving multiple uses of the product.  Deliver the message that Heartbeat is a healthy product overall, not just that it is low in fat and cholesterol.  Continue focus of convenience of the product as this is also a hot button for time-crunched consumers, especially females 35+.

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 14 Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions Attitude Link provides insights across the organization…

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 15 Case Study #3: Compete with Private Label “ What’s in a name if the results are the same…” Situation analysis:  Asprifree sales decline while private label pain relievers continue to grow Business issues:  How to attract new buyers to Asprifree?  What are the Asprifree strengths and weaknesses compared to PL?  Is price the only PL pain reliever advantage? IRI solution:  AttitudeLink surveyed brand loyal pain reliever users and brand switchers PL Brand

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 16  Value of doctor recommendation as a purchase decision influencer  Perception of pain reliever effectiveness was similar  Ailment and severity of symptoms are not big factors in pain reliever selection  Previous experience with product  Importance of packaging Compete with private label… Findings

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 17  Keep a focus on professional detailing  Leverage manufacturer’s umbrella brand equity: reliable, safe, effective  Narrow the price gap between name brand and private label Recommendations Compete with private label… In the most recent quarter: Price gap narrowed by 32 cents (16%) Sales trends reversed

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 18 Price Attitude Link provides insights across the organization… CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 19 Case Study #4: Consumer insights “Keeping the sparkle in their eye…” Situation analysis:  One of the Super Kleen Co. best selling cleaning products declined over past year  Increased number of consumers left the category Business issues:  Why is SparKleen losing sales?  Did the product usage change?  Did consumer expectations for cleaning products change?  What are SparKleen strengths and weaknesses? IRI solution:  AttitudeLink survey results compared usage and attitudes among buyers of three major brands in the cleaning product category. Also looked at Lost and Retained buyers.

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 20  Reduced TV advertising and other marketing efforts affected sales  Purchase cycle extended  Multi-functional cleaner functionality not utilized Findings Consumer understanding  SparKleen strengths:  Can be used all over the house  SparKleen weaknesses:  Is not as trusted as competitive brands  Is not a good value for the money  Does not work as expected/as shown in advertising

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 21  Re-launch a marketing campaign that reinforces the multiple uses for the product  Be certain to state in new marketing that SparKleen can be used in addition to bleach and other cleaners rather than as a substitute  Make sure consumers have realistic expectations of the product! Results & Recommendations Consumer understanding 2004 volume sales up 9% 2004 annual sales increased by $3MM

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 22 Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions Attitude Link provides insights across the organization…

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 23 Case Study 5: Channel management decisions Situation analysis:  GotALot retailer wants to know how to encourage shoppers to fill their prescriptions there, rather than at traditional pharmacies or at competitors Business issues:  How does GotALot perform against what is important to the consumer?  How to prevent shoppers from buying Rx and OTC from competitive retailers? IRI solution:  AttitudeLink survey to GotALot shoppers who filled their prescriptions there and/or traditional pharmacies or other retailers

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 24 What’s important to Rx Buyers: GotALot Performance:  Convenient locations  Knowledgeable pharmacist  Fast checkout  Quick prescription filling What’s important OTC Buyers:GotALot Performance:  Low prices  Easy-to-find items  Convenient location  Fast checkout Overall satisfaction with GotALot: Channel management decisions Findings

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 25 Recommendations  Leverage GotALot’s strong Rx satisfaction ratings to increase sales in the rest of the store and minimize lost sales to competitors.  Promote “one stop shopping” message.  Consider longer hours and alternative means of delivering meds to consumers. Channel management decisions

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 26 Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/ Compete with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions Attitude Link provides insights across the organization…

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 27 Case Study 6: Product evaluation Situation Analysis  Lovin’ Oven Inc. introduced a new product, Tub O’Grub  Do consumers like it enough that it could be a long term contender in the shelf stable dinner category? Business issues:  How do we turn triers into repeaters?  Does the product meet consumer expectations on taste, price and other product features?  IRI solution:  AttitudeLink surveyed Tub O’Grub triers and repeat buyers

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 28 Product Evaluation Findings Do consumers like the product?  Only 65% of respondents indicated intent to repurchase, which is significantly lower than other benchmarks (generally 80%).  More than half of consumers felt that there was not enough meat included in the product.  Taste ratings were significantly lower than the client’s benchmarks.  Children seem to like the product slightly more than adults. But they could not prepare it themselves.

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 29 Recommendations  Increase the amount of meat in the product  Improve product taste and quality of the ingredients  Focus on product attributes that appeal to children. Make it easier for kids to prepare the product themselves Product Evaluation Client implemented IRI’s recommendations 2004 annual sales increased by $6MM

Copyright © 2005 Information Resources, Inc. Confidential and proprietary. 30 Attitude Link provides insights across the organization… Price CONSUMER MANAGEMENT PRODUCT DEVELOPMENT SUPPLY CHAIN MANAGEMENT CORPORATE PLANNING Company mission Gain competitive advantage Forecasting BUSINESS STRATEGY Category Understanding Brand building/ differentiation Pricing strategy/Compe te with PL MARKETING Consumer Insights Product evaluation/ reformulation Channel management decisions