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

3. 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?

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

5. Spread'em Inc. - Confidential4 Organizational Chart

6. Spread'em Inc. - Confidential5 Product Description

7. 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

8. Spread'em Inc. - Confidential7 Pre-Production Cycle

9. 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

10. Spread'em Inc. - Confidential9 Preliminary Concepts

11. 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

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

13. Spread'em Inc. - Confidential12 MarketingMarketing

14. 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

15. 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

16. Spread'em Inc. - Confidential15 Market Size Step Down Population of Montreal: 3.55 million Population of 20-35 year-olds (21%): 745 500 Number of Households (2.5 people/house): 298 200 Potential Canadian market: 898 800

17. 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!

18. 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$14.95-59.95

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

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

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

22. 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

23. Spread'em Inc. - Confidential22 Final Design

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

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

26. Spread'em Inc. - Confidential25 Material Selection

27. 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

28. 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

29. Spread'em Inc. - Confidential28 ManufacturingManufacturing

30. Spread'em Inc. - Confidential29 ManufacturingManufacturing  Adopted DFM to minimize manufacturing cost while ensuring high product quality  Projected sales of 30 000 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

31. Spread'em Inc. - Confidential30 Cost Analysis  Unit Variable Cost – C$ 1.16  Selling Price – C$ 6.99  Break-Even Unit = $110 000 / ($6.99 – $1.16) = 18 867 units  Projected sales of 30 000 units first year

32. Spread'em Inc. - Confidential31 Lessons Learned

33. 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

34. Spread'em Inc. - Confidential33 Questions?Questions?