Hero Presentation for NY and Boston

LAUNCHING HERO VELVET

JULY 24, 2014

OVERVIEW

Objective: Raise brand awareness, drive sales thru trial

Timing: Phase 1: Fall 2014

Phase 2: 2015

Markets: Phase 1: New York

Phase 2: New York, Boston

Target: 28+ yr old women who bake at home

Assets: 10,000 samples available: 1 oz jars

Consumer message:

Try the #1 fruit preserve brand preferred by professional bakers in your own treats.

2015: Now the ‘Velvet’ line of smooth and seedless fruit preserves are available for

the home baker.

2014 IN NEW YORK

Budget: $25,275

Option A :

Live Sampling

Targeted Outdoor Display Ads

SAMPLING: To raise awareness of the HERO brand name we

would take advantage of New York as a great sampling

medium. Targeting peak traffic areas, we can distribute 10,000

1 oz samples of Hero during the holiday season, along with a

recipe card that will :

- Reinforce the brand name

- Seed the baking concept

To capture attention and reinforce the brand name, we would

attire our samplers in blue like the new package color, with a

logo clearly displayed. Capes would serve as a mnemonic for

the “Hero” name.

ADVERTISING:

- Outdoor display targeting peak traffic areas

Brand Awareness

Recipe card

2014 IN NEW YORK

Budget: $25,125

Option B :

Live Sampling

Digital Banner Placement

SAMPLING: As described on previous slide.

ADVERTISING:

Digital Banner Ads would serve mainly as brand

name reinforcement.

We can place digital banners on food sites where

consumers are searching for holiday dessert

ideas.

If you have the list of store distribution, we can

target within a 5 mile radius of each store.

Programmatic Digital Banner Buy, targeted to

consumers interested in baking in NYC

Creative – 7 banner versions

3.75mm est. impressions

Brand Awareness

Recipe card

2014 - 2015

Moving forward into 2015, we recommend a coordinated effort

across multiple channels.

Website

A website focus on Hero Velvet

Your current site is functioning as a placeholder, with no consumer

strategy behind it.

To support Hero Velvet, requires

Focus on Recipes

Pastry Heritage

Recipes/Photography

On a minimal level we have a chef and photography team that will

create original recipes that are rights-cleared and owned by HERO.

They work with Sara Lee, Mars, Dole, and other major CPG

companies, and created content for our award-winning site for Arla.

Social Media

We would post on Pinterest, but do not recommend other social

media at this time. Pinterest is a strong driver of interest in recipes.

Facebook has changed its algorithm and is no longer pragmatic for

brand promotion.

Build core assets

2015 IN NEW YORK AND BOSTON

We recommend a strategy that will give you:

- the broad brand reach of traditional media

- the target specificity of digital

- and the high-touch of sampling.

A combination of magazine, digital radio, and sampling will allow you

hit peak selling (baking) seasons and support them robustly.

Being noticed in many places ‘at once’ gives you big brand impact.

With targeted markets, it’s affordable.

Multichannel marketing

2015 MAGAZINE ROLL-OUT FOR HERO VELVET

• To use the launch of the Hero Velvet line to gain significantly more

awareness and sales for the total Hero brand.

• To specifically spike interest in sales with consumer prospects for

baking usage of the new Velvet line.

Originally the plan was to concentrate coverage of consumer prospects

in New York and Boston. We look to magazines because magazines are

the most demographically targeted mass media. In the selling climate

facing magazines today, we can provide national coverage for the cost of

a single region.

The following statistical charts support our selection of consumer

magazines, matched with our experience with their editorial prominence

and suitability for your purposes.

Objectives:


Food Magazines Ad Page Comparison

First 6 Months 2014 vs. 2013 Ad Page Level

2014 Pages 2013 Pages % Change

Cooking Light 573.5 580.1 -1.1%

Food and Wine 556.9 572.3 -2.7%

Food Network 512.8 588.5 -12.9%

Bon Appetit 380.7 445.3 -14.5%

Every Day w/ Rachael Ray 332.8 371.6 -10.4%

Eating Well 178.0 177.5 0.3%

TOTAL 2534.7 2735.1 -7.3%

We first looked across a broad field of food magazines. This chart of Food Magazines Ad Page

Comparison chart indicates the importance of each of these to advertisers. As you can see Cooking

Light and Food Network are at the top, as is Food and Wine.


Hero Magazine Full Page Rates 2015

Publication Rate Base 2015 P4C Rate % Discount CPM Circulation

Bon Appetit 1,500,000 $90,680 50% 60.45

Cooking Light 1,809,000 $65,655 55% 36.29

Food Network 1,650,000 $47,760 50% 28.95

New Yorker 1,015,000 $24,180 80% 23.82

Real Simple 1,975,000 $58,825 70% 29.78

Vanity Fair 1,175,000 $98,387 47% 99.56

We next looked at cost as a factor. In discussion with the publications, we are able to provide the above Hero

Magazine Full Page Rates for 2015. We also provided the rate base (circulation), and calculated the CPM.

As you can see the cost efficiency of four magazines is relatively good whereas Bon Appetit and Vanity Fair

are out of line.


Audience Cost Ranking

Women Ages 25-54 who Bake at Home

Base: Adults - Population: 235,577,000 Run Date: 7-29-2014

Aud (000) % COV % COMP Index Cost (4PC) CPM Users

Women and Adults 25-54 & Baking: Participated in last 12 months 20,144 100.0 8.6 100

Real Simple 2,181 10.8 26.9 315 $ 58,825 26.97

Cooking Light 2,025 10.1 18.6 217 $ 65,655 32.42

Food Network 1,806 9.0 15.5 181 $ 47,760 26.44

Bon Appetit 915 4.5 15.0 175 $ 90,680 99.10

Vanity Fair 908 4.5 14.6 171 $ 98,387 108.35

The New Yorker 482 2.4 12.0 141 $ 24,180 50.16

Our next view drilled down the CPM to our target. The Audience Cost Ranking chart compares the six magazines in

covering our target audience of women 25-54 who bake at home. Here, as you can see, 3 magazines stand out in their

efficiency and strength of coverage in reaching this group. The surprise is Real Simple, which is not a food book but

nonetheless has the highest composition of women who bake at home. Together Real Simple, Cooking Light, and

Food Network emerge as offering Hero the best opportunity for reaching your target.


Proposed Magazine Schedule Year 2015

Magazine % of Coverage Cost P4C Frequency Total Cost Total Coverage

Real Simple 10.8% $58,800 2x $117,600 21.6%

Cooking Light 10.1% $65,600 2x $131,300 20.2%

Food Network 9.0% $47,700 2x $95,500 18.0%

Total 29.9% Total $344,400 59.8%

Est. total net coverage of women 25-54 who bake at home 33.0%

Estimated Frequency 2x

With these choices, we then developed the above Proposed Magazine Schedule for 2015.

According to Google Trends, peak periods for home baking are July and Nov/Dec holiday, followed by April/May.

We would make the final determination of issue choices based on their 2015 editorial calendars.

PANDORA STREAMING RADIO

Display ads appear at the same time as your

audio ads. This increases response.

Pandora Digital Radio creates a strong

engagement through audio and screen with

click-thru to special offers or other

engagement. We manage the campaigns to

maximize impact by region, demographics,

and daypart.

Targeted: 100% delivery to ONLY your

demo and geographic target

Un-Cluttered Environment: Only 4 minutes

of ads per hour.

Our plan would include four 2-to-4-week

flights in each market

Additionally, we have the ability to change

creative messaging, enhance the message

through banner advertising with the ability to

click-through to an offer or website

demonstration.

Standard Banner appears after audio

ad concludes and music resumes

Audio w/ Companion Tile displayed

during duration of audio message

We are in discussion with the International

Culinary Institute, which trains 20,000

professional chefs and pastry chefs and educates

26,000 amateurs through a regular calendar of

courses.

We are discussing levels ranging from a launch

event with baking demonstration and

participation, to development of a course

sponsored by HERO, to an endorsement from the

pastry faculty with rights to use their imprimatur.

There are also professional bakery associations

and events to be considered on a trade show

level, including the triannual International Baking

Industry Exposition, being held next in 2016 in

Las Vegas.

Baking and Sweets Show, a show for amateurs,

is held in Chicago.

PROFESSIONAL INTEGRATION

NY Q4 2014 BRAND PUSH

Media Production Description Budget

Option A

Street Team Sampling

Brand ambassador team in Hero branded attire, giving out printed material and samples

3625

Sampling Assets 10,000 handouts, attire, expenses 8000

Phone Booth 1 month, 18 placements 7650

Production 6000

TOTAL 25,275

Option B

Street Team Sampling

Brand ambassador team in Hero branded attire, giving out printed material and samples

3625

Sampling Assets 10,000 handouts, attire, expenses 8000

Programmatic Digital Banner Support

Banner Creative

Targeted to consumers interested in baking in NYC Set-up, creative, coding

13,500

TOTAL 25,125

INTEGRATED ELEMENTS FOR NY AND BOSTON, 2015

Media Production Description Impressions Budget

Website Updated HeroUSA.com website, focus on recipes, simple navigation

-

24,000

I2 Original Recipes for Hero Velvet

- 24,000

Print Campaign Relevant baking and foodie-focused magazines running across 2015.

6mm – National w/ Women 25-54 who

Bake at Home

344,400

Print Ad Concept, design, photography, production, materials to publication 60,000

Pandora Radio Demographically and geo-targeted :30 audio/visual ads

1.83mm – NY 1mm – Boston

50,000

Spot Production Copy, production on a per spot basis 6,000

Sponsorship Opportunities

Potential with I.C.E. TBD

Programmatic Digital Banner Support

Targeted to consumers interested in baking in NYC and Boston

5mm – NY 5mm – Boston

50,000

Banner Creative Set-up, creative, coding 9,000

TOTAL $567,400

Drive Calendar Market Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 Sampling/Outdoor

Soft Launch (Opt. A) New York

2014

Sampling/Programmatic

Digital Buy (Opt. B) New York

Hero Website

Development National

Real Simple National

Cooking Light National

Food Network National

Pandora Boston

Pandora New York

Programmatic Digital

Banner Support Boston

Programmatic Digital

Banner Support New York

Will be adjusted to coordinate with in-store promotions schedules, and to support live events, as needed.

TIMELINE 2015

Hero Presentation for NY and Boston

Business

Transcript of Hero Presentation for NY and Boston