NCH Presentation To GS1 MobileCom

1. NCH Presentation To GS1 MobileCom

2. Agenda Coupon landscape Coupon process flow Importance of standards Leveraging existing infrastructure Need for collaboration

3. NCH Background • 50 year heritage • Value proposition = protection • Well respected for integrity • Serving leading manufacturers & retailers around the world • Retailers • Walmart • Asda • Tesco • Target • Carrefour • Walgreens • Sainsbury’s • Manufacturers • Colgate-Palmolive • Unilever • Proctor & Gamble • General Mills • Kraft • Danone • Henkel

4. Motivate Consumers Support Merchandising Increase Brand Awareness Marketers Use Coupons To:

5. International Trends • USA • Coupon Distribution: 285 Billion • Sunday FSI • Coupon Redemption: 2.6 Billion • UK • Coupon Distribution: 4.5 Billion • Direct Mail, Door Drop & Magazine • Coupon Redemption: 383 Million • Spain • Coupon Distribution: 329 Million • On/In-Pack, Direct Mail, Door to Door • Coupon Redemption: 23 Million • Italy • Coupon Distribution: 405 Million • On/In-Pack, In-Store, Magazine • Coupon Redemption: 73 Million • Germany • Coupon Distribution: 1.6 Billion • Direct Mail • Coupon Redemption: 11 Million

6. Dynamic Marketplace WhereMuch Has Changed Since The First Coupon New media: internet/digital Frequent shopper cards Consumer shopping behavior Sophisticated point-of-sale technology Fraudulent activity at all points in a coupons life

7. Today, Technology Is Enabling Paperless, Digital Coupon Formats To Motivate Shoppers

8. The Transformation Of Formats To Reach Consumers With Coupons Is Underway Percent of all consumers NCH 2008 Consumer Survey

10. $ Report CouponsDestroyed Manufacturer Agent Consumer $ INVOICE for ABC Company 92 93 94 0.2 1.4 5.3 1.6 4.2 1.6 5.2 1.0 3.3 1.2 3.4 2.2 $ RetailerAgent Retailer Traditional Coupon Flow Marketer

11. Standards Are Critical • The current process works because of an agreed upon set of standards between the two major players – retailers and CPGs • System is self regulated – many independent bodies (GMA, FMI) align behind these standards • All parties involved – clearinghouses, manufacturer agents, CPGs, Retailers – have validated and adopted the existing process • Barcode Standards • POS integration • GS1 Databar – helps to reduce fraud, increase data capture, and augment overall application • Design Standards • Coupon verbiage • Terms and Conditions • Considered a binding contract

12. Leverage Existing Infrastructure To Reach Scale In CPG/Grocery Channel • System is media neutral: mobile is a new vehicle to get discounts to consumers • It is not just about the technology – other items need to be taken into consideration • Retailer – wants to make sure they are getting paid • Manufacturer – wants their marketing & movement data • Both – want to minimize Fraud • In order to reach scale in a reasonable timeframe, mobile coupons benefit from leveraging existing standards and infrastructure

13. Collaboration is Necessary • Mobile standards should not be developed in a vacuum • Collaboration with already established organizations is vital to establishing mutually agreed upon standards and ultimately market adoption • JICC , ACP, FMI, GMA … • Significant retailer and manufacturer involvement and support is required Joint Industry Coupon Committee (JICC)

14. Thank You!