Sales Account Planning Meeting Marketing Presentation

1. Sales Account Planning MeetingMarketing Presentation WELCOME Marc Spilo Sales Reps

2. Marketing AgendaFirst Half 2013 • Introduction: New Focus • New Products Overview • Line Extensions Overview • First Half 2013 Calendar • Product Drill Down / Sales Planning • Additional Topics • In & Out Promos • Seasonal File Cattys • Tweezer Catty • Mirrors & Mini Tweezers • Mini Crystal Nail Files • Mehaz Packaging • Specialty Catalog Rotation • Your Customers’ Needs

3. Introduction: New Focus Better sales through better focus • We are changing the focus of our new product introductions and line extensions: • Fewer, more impactful intros • Spread throughout the year in two month intervals • Detailed sales plans • Pricing parameters upfront that give the salesperson clear direction on pricing they are able to offer to an account • Increased, focused marketing support

4. Introduction: New Focus Introduce products that are right for the market • We are launching a total of five new products and line extensions combined for the 1st half of 2013. Each of these products: • Have been market tested with professionals • Have differentiated features and benefits • Have good strategic fit with their brands • Are priced competitively

5. New Products Overview • Flowery Pump Bottle • Twist Lock 8oz. Plastic Bottles • Timing: January 2013 • Mehaz Stainless Steel Foot File • Stainless steel handle with disposable 60 and 100-grit pads • Timing: March 2013

6. Line Extensions Overview • Flowery Disposable Buffing Blocks • 180/180 grit, blue disposable block, 100/pk • Timing: March 2013 • Speed-O-Guide 1” Clipper Comb • 1” clipper comb size • Timing: March 2013

7. New Products Overview • Flowery Replaceable Nail File • Reusable core with disposable 100 and 180 grit pads • Timing: May 2013

8. 2013 1st Half Calendar

9. 2013 1st Half Calendar

10. 2013 1st Half Calendar

11. Product Drill Down / Sales Planning

12. January 2013 Twist Lock Beauty Pump Bottles 6-Piece display features 3 white and 3 black twist lock pumps. Open stock with wrap tag also available. • What’s Our Competitive Edge? • Top performing pumps with reliability and quality on par with higher priced brands • Moderately priced, backed by the Flowery brand name • Stand-out packaging and merchandising • Why Do Your Customers Need This? • We’ve done extensive testing to perfect the quality ensuring these pumps: • Do not leak • Easily lock and unlock • Smoothly pump liquid • They can offer a high quality pump at an attractive price point • How Much Is It? • 6-Piece Display: • Distributor= $14.99; Suggested Salon= $4.99 each • Open Stock: • Distributor= $2.49; Suggested Salon= $4.99 • The Competition • Menda= $6.49+ • YCC= $5.49 • Non-branded range from $2.99 to $5.95

13. Twist Lock Beauty Pump Bottles • Target Customer Classifications • Full Service Distributors • OTCs • International Nail Accounts • Projected Annual Quantities • Displays= 1,000 • Open Stock= 7,000 each color

14. Twist Lock Beauty Pump Bottles • How are we getting the word out? • To your customers • E-blast to Spilo customer base • Web site welcome screen • Hot Sheet and Catalog Exposure • Sell Sheet • To their customers • Advertising in distributor flyers • Press Coverage Note: Marketing, Merchandising, Advertising, & Pricing Plans to be delivered to Sales by November 1, 2012

15. March 2013 • What’s Our Competitive Edge? • Pad surface is more than double compared to similar products on the market • Our product covers more surface area to save the professional time and effort • We perfected the grit pad adhesive to remove from the handle cleanly and easily for quick replacement • Why Do Your Customers Need This? • Salon safety is important to their clients • Replaceable pads mean repeat business • How Much Is It? • Starter Kit: • Distributor= $8.49; Suggested Salon= $16.99 • Replacement Pads 50-Pack: • Distributor= $9.99; Suggested Salon= $19.99 ($.40 each) • The Competition • Starter Kits: • PediPro - $20.00 • Handle with 5 ea 60 and 100 grit pads • Tweezerman Infinity Pro - $14.99 ea • Handle with 2 ea 80 and 120 grit pads • CuccioNaturale Pedicure Kit - $25.99 ea • Handle with 15 black 80 grit and 15 white 180 grit pads • Replacement Pads: • PediPro 60/pk= $16.00 ($.27 each) • Tweezerman 12/pk= $6.50 ($.54 each) • Cuccio 50/pk= $12.00 ($.24 each) Stainless Steel Foot File System Starter Kit contains stainless steel handle and 5 each of 60 and 100 grit replacement pads. Replacement Pad packs contain 50 of each grit.

16. Stainless Steel Foot File System • Target Customer Classifications • Full Service Distributors • Professional Supply Catalogs • OTCs • Projected Annual Quantities • Starter Kit= 4,500 • Replacement Grits= 2,000 each

17. Stainless Steel Foot File System • How are we getting the word out? • To your customers • Advertising to the trade media in Q1 • E-blast to Spilo customer base • Web site welcome screen • Hot Sheet and Catalog Exposure • Sell Sheet • To their customers • Advertising in nail publications in Q2 • Advertising in distributor flyers • Press Coverage • Social Media Note: Marketing, Merchandising, Advertising, & Pricing Plans to be delivered to Sales by November 1, 2012

18. March 2013 Disposable Buffing Blocks 100-Pack Size • What’s Our Competitive Edge? • Attractive blue color is a commonly used block color in the salon and conveys quality • Re-sealable, peggablepolybag packaging is: • Convenient for our customers • Professionals can easily store and keep the product clean • Why Do Your Customers Need This? • 2012 sales of the 24-Pack are +150% • It’s a natural addition to the Flowery disposable products they already carry • State board guidelines continue to encourage the use of disposable products in the salon to ensure client safety • How Much Is It? • Distributor= $4.99; Suggested Salon= $9.99 ($.10 each) • 24/pk = $0.12 each • The Competition • Star Nails 126-Pack= $8.39 ($.07 each)

19. Disposable Buffing Blocks • Target Customer Classifications • Full Service Distributors • Professional Supply Catalogs • Projected Annual Quantities • 100-Pack= 4,500

20. Disposable Buffing Blocks • How are we getting the word out? • To your customers • E-blast to Spilo customer base • Hot Sheet and Catalog Exposure • To their customers • Press Coverage Note: Marketing, Merchandising, Advertising, & Pricing Plans to be delivered to Sales by November 1, 2012

21. March 2013 • What’s Our Competitive Edge? • Universal: fits most hair clipper brands • Superior quality ABS plastic for strength & flexibility • Steel clip is designed to withstand many changes • Smooth teeth with rounded tips for client comfort • Why Do Your Customers Need This? • Filling out the Speed-O-Guide line with a 1” comb will satisfy your Speed-O-Guide consumers that currently must buy from another brand • Customers can add to their order to get the best quantity pricing. • How Much Is It? • Distributor= $1.40; Suggested Salon= $3.39 • The Competition • Wahl - $3.79 ea (salon price) • Plastic clip, breaks more often, not as durable and long-lasting • Not as secure as Speed-O-Guide – sometimes falls off during use • Not Universal • Oster - $6.19 ea (salon price) • Universal • Metal clip New 1” Clipper Comb Delivers precise 1” length hair cuts. Universal: fits most hair clipper brands. Steel spring is heat treated for durability and lasts longer than plastic clips.

22. 1” Clipper Comb • Target Customer Classifications • Redistributors • OTC • Full Service • Projected Annual Quantities • 8, 000 each

23. 1” Clipper Comb • How are we getting the word out? • To your customers • Advertising to the trade in Q1 • E-blast to Spilo customer base • Web site welcome screen • Hot Sheet and Catalog Exposure • Sell Sheet • To their customers • Advertising in hair salon and barber publications in Q2 • Advertising in distributor flyers • Press Coverage Note: Marketing, Merchandising, Advertising, & Pricing Plans to be delivered to Sales by November 1, 2012

24. May 2013 Replaceable Nail File Program Starter Kit features 2 gray cores, plus 25 of each grit pad (100 and 180). 100-Pack Combo Replacement Pads contains 50 of each grit. • What’s Our Competitive Edge? • Two cores in the starter kit • The competition only gives one • Grit pads cover the entire core • The competition’s pads only cover ¾ of the core • Quick notch feature on both sides of the core for easy pad removal • The competition doesn’t offer this feature • Why Do Your Customers Need This? • Because professionals went crazy for this product in test! • It’s a natural addition to the Flowery disposable products they already carry • State board guidelines continue to encourage the use of disposable products in the salon to ensure client safety • How Much Is It? • Starter Kit: • Distributor= $4.99; Suggested Salon= $9.99 each • 100-Pack Combo Replacement Pads: • Distributor= $8.99; Suggested Salon= $17.99 ($.18 each) • The Competition • ProSticks • Starter Kit (1 handle & 25 of each grit pad)= $9.95 • 100-Pack Combo Replacement Pads= $12.95 ($.13 each)

25. Replaceable Nail File Program • Target Customer Classifications • Full Service Distributors • Professional Supply Catalogs • Projected Annual Quantities • Starter Kit= 5,500 • 100-Pack Combo Replacement Pads= 10,000

26. Replaceable Nail File Program • How are we getting the word out? • To your customers • E-blast to Spilo customer base • Web site welcome screen • Hot Sheet and Catalog Exposure • Sell Sheet • To their customers • Advertising in nail publications in Q3 • Advertising in distributor flyers • Press Coverage Note: Marketing, Merchandising, Advertising, & Pricing Plans to be delivered to Sales by November 1, 2012

27. Additional Topics • In & Out Promos • Seasonal File Catty • Tweezer Catty • Mirrors & Mini Tweezers • Mini Crystal Nail Files • Mehaz Packaging • SalonSystem Lashes • Specialty Catalog Rotation • Your Customers Needs

28. Thank you!!!