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Sunoco A Plus – Summit Meeting 10/3/2012. Functional Category & Product Consumer Insights & Marketing Customers Agenda 2.

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Presentation on theme: "Sunoco A Plus – Summit Meeting 10/3/2012. Functional Category & Product Consumer Insights & Marketing Customers Agenda 2."— Presentation transcript:

1 Sunoco A Plus – Summit Meeting 10/3/2012

2 Functional Category & Product Consumer Insights & Marketing Customers Agenda 2

3 Functional Category & Product 3

4 NEURO’S PHILOSOPHY: WHAT WE STAND FOR Premium Functional Ingredients 4 Our researchers and scientists continue to study to ensure each Neuro has the optimal levels and mix of ingredients to deliver the functional promise on the bottle. The key ingredient and dosage levels are backed by published, third-party research proving the benefits delivered at the levels contained in each Neuro. We are uncompromising in our development and have not cost-contained or reduced the ingredient levels in any way. Everything from our ingredient sourcing to our ambient fill process is designed to deliver optimal benefit in each Neuro Neuro delivers true function -ingredient quality and dosage levels high enough to work--setting it apart from other offerings Neuro is designed with real ingredients at real levels to deliver real results for whatever our consumers passions and needs might be at any time of day...

5 NEURO: TRUE FUNCTION The 24/7 Solution to Live out Loud 5 Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.

6 6 Source: MarketResearch.com “Growth Opportunities in Soft Drinks.” December, 2011 Functional Beverages Insights Functional Beverages are projected as the fastest growing category for the next 3 years

7 7 Source: Deloitte Food and Beverage 2012 Report Where to Focus: Key Trends Shaping the Industry Convenience, Premiumizations, Out-of-Home consumption, and Choice are the 4 top trends driving consumer behavior

8 8 Value Consumer = Price Evolving toward Value Consumer = Benefits/Price Dollar Sales +4% Unit Sales -4% Avg Price 18% higher Dollar Sales +8% Unit Sales +5% Mainstream Coffee Premium Coffee Pod Coffee Avg Price 40% higher Dollar Sales +115% Unit Sales +99% Source: Nielsen Scantrack, Total U.S. 2012 U.S. Retail Trends The New Value Trend: Shift from Price to Benefit Consumers are beginning to view value differently. Value is no longer about a low price, but increasingly about benefit, in short: Does the product deliver?

9 1970s 1980s 1990s 2000s2010s Refreshment Low Calorie Benefit Healthy Functional Evolution of the Functional Category THE OLD CONSUMER (static or shrinking numbers) THE NEW CONSUMER (high growth demographic) Seeks refreshment Seeks flavor over function Doesn’t think about negative health affects Seeks the lowest price possible Demands noticeable functional benefit Demands Low Calorie Demands positive, AND no negative health affects Seeks Premium products Willing to pay more for products that meet these criteria The Consumer driven evolution of what a beverage should deliver 9

10 1.Provides a true benefit 2.Low Calorie 3.Healthy Evolution of the Functional Category The Functional Category contains three essential elements: Neuro is leading the formation of the true Functional Beverage Category as the only system of beverages with national distribution that delivers all there elements. 10

11 Neuro: Product Positioning & Usage Occasions 11

12 neuro BRAND:The spark that ignites your life. Light it up.: The spark than ignites your life neuro PASSION:Increase your drive to pursue what you love Caffeine combined with L-citrulline neuro SONIC: Increase alertness so you can focus Caffeine fused with L-Theanine neuro SLEEP:Sleep well so you can recharge Melatonin mixed with magnesium neuro SUN:Feel better so you can shine healthy dose of Vitamin D neuro BLISS:Reduce stress to keep you calm Chamomile blended with L-Theanine neuro TRIM:Control your appetite so you eat less A satisfying portion of fiber Neuro: The Benefit With the Science 12

13 Reformulated Hunger Management Tool Same great fiber, now even more effective Fiber dosage increased to 1 gram (4% of Daily Value) More textured liquid allows formula to begin working immediately Enhanced taste profile Neuro TRIM 2.0 Control your appetite and eat less. A satisfying portion of fiber 13

14 Consumer Insights & Marketing 14

15 15 Overall-All SKU brand loyalty Among regular users, Neuro’s brand loyalty is competitive with much older, more established brands Net Promoter Score; Q1 2012

16 2012 National Media Campaign $3.5M integrated, multi-platform plan 1.5B impressions National Digital, Mobile, Print, Social and PR outlets Regional OOH Billboard/Transit and Radio Focus: Neuro Brand, Neuro Sonic, Neuro Bliss Target Consumer Primary Age: 18-34y Secondary: 15-18y and 34-49y 50/50 Male/Female Middle income and up Health Conscious To increase Neuro’s awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31 st, 2012 16

17 2012 National Media Campaign Integrated National Campaign with a continuous focus on digital to target consumers 17

18 Digital Media-Full Screen Ad With Video 18

19 Digital Ad Partnerships In Style Skin Rolling Stone Progressive Flash Pandora Branded Stations Partnerships with established digital platforms allow for high, credible impressions rates 19

20 Screen to Store: Product Ad With Store Locator Consumer Experience Progression Product Media Product Locator Interactive Digital Ads that drive consumers directly to the point of purchase 20

21 National Print Ads-Neuro Sonic & Neuro Bliss Print ads to targeted demographics reaching over 60 million of readers. Publications specifically selected for demographic and high rate of beverage purchases from ads In-Style Magazine July/August/September. Alternating Bliss and Sonic Ads Rolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads 21

22 Point of Sale Available profit drivers: Racks Price Labels Generic Static Poster Shelf Strip Pallet Wrap Push/Pull Pallet Header Pole Display Glide Rail Stickers POS Placement increases the profit story for every retailer: Ties the retailer into into Neuro’s multi-million dollar marketing campaign Calls out a high profit product and its pricing to consumers Max number of smart placements = Max retailer profit 22

23 Customers 23

24 The Profit Story 24 Neuro is positioned to capture the strongest, fastest growing consumer trends Neuro’s premium retail position delivers a significantly higher profit per transaction Neuro drives incremental category sales with a typical retail $1.00 higher than similar offerings Neuro drives multiple transactions increasing rings and driving category sales. A typical single bottle Neuro transaction will deliver the same profit as selling 4 to 5 bottles of another enhanced unit *If this enhanced water turns this rack, it is 96 units @ approx $0.17/unit Profit= $16.32 *When NEURO turns this rack, it is 75 units @ approx $0.90/unit Profit=$67.50 Neuro is leading the way in driving profit in the enhanced/functional spaces Example Profit Study

25 25 Account S & Neuro scan sales; Q4/2011-mid May 2012 Neuro renews the category profit in a national convenience chain Sales Share of Brand Direct quote from a national c-store chain category manager: “Neuro was the second best performing new brand (via sales $$’s) to launch via our innovation section of new entries in our company history.” C-Store Sales Account “S” Data In the first 7 months in distribution this chain sold 670,150 units in 210 days 3,191/Ave of 900 stores =3.55/5 0.71 units per store per day per SKU $1,693,828 ($’s)/670,150 (Units) = $2.53 On average Neuro generates $1.00 more per transaction then your typical single serve n/a beverage

26 3 SKUs all compete for top volume, with 2 more gaining share Passion has been rapidly gaining share since being introduced in Q2 2012 Trim has been reformulated-new flavor, faster function Neuro By SKU Nationally Source: Neuro Depletions YTD 7.2012 26 All six Neuro SKUs sell well, with 3 different ones competing to lead the business

27 Sunoco A Plus – Summit Meeting 10/3/2012


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