PACKAGE TESTING

1. PACKAGE TESTING Prepared by: Nelson Research, Inc. Ronald G. Nelson, President 980 Broadway, Suite 134 Thornwood, NY 10594 (914) 741-0301 www.nelsonresearch.com

2. Package Testing – NRI POV Package testing should provide more than identification of the “winning package.” The package is advertising for the brand. An effective package should: • Be noticed within the competitive clutter • Evoke favorable attitudes • - If the consumer does not like the package, negative feelings “may” rub off on the brand • Be consistent with the Brand’s image Accordingly, there are two elements in NRI package testing: • Visual Intrusiveness • Catching the eye in a simulated shelf environment • Image Transfer • Attitudes and imagery conveyed by the package Following is a masked excerpt of an NRI package study (New vs. Current).

3. Package Testing – Visual Intrusiveness Client package is shown in a mini-shelf environment with up to six competitive brands. The actual position of the client brand is rotated from respondent to respondent to avoid positioning bias. Visual intrusiveness is measured by the number of seconds required by the respondent to recognize the client brand on the shelf by clicking on brands in a list. • Implication – • NRI surmises that the new package is perceived to be a new (possibly, improved) version of the brand. • This “may” invite competitive brand new users to reconsider the client brand. • NRI further surmises that the intrusive lead for the current package among client brand users is likely traced to familiarity. • Learning– • The new package is more intrusive, particularly among competitive brand users and heavy volume consumers. • The current package is (directionally) more visually intrusive to the client’s brand users. See table on the following page.

4. Package Testing – Visual Intrusiveness VISUAL INTRUSIVENESS SUMMARY Noticed in less AVG than 5 secondsAvg# Seconds Required BASENewCurrentNewCurrent # % % # # TOTAL [200] 38a30 9.20 9.40 Key segments Client Brand [80] 37 44 8.31 8.26 Leading competitor brand [120] 38a26 8.21 10.12 Heavy users [110] 42b 28 7.578.45 a= significantly higher at better than the 90 % level of confidence b= significantly higher at better than the 95 % level of confidence

5. Package Testing – Attitudes Implication – We observed earlier that the new package is particularly eye-catching among competi-tivebrand users. This may be traceable to favorable opinions about “differentiates it from competitive brands”. • Learning– • The new package appears to present a brand that has been around a long time in a new and favorable way. Also, perceptions of “quality brand” are enhanced. • The new package differentiates the brand from the competition and appears to be more persuasive. PACKAGING ATTRIBUTES NewCurrentNew Edge [200] [200] % % Conveys high quality 41 33 8a Shows a traditional brand in a favorable way 40 30 10b Is a brand I’d be interested in buying 36 28 8a Differentiates it from competitive brands 35 26 9b Has a contemporary and up-to-date look 39 33 6 Is not cluttered 36 31 5 The package color is appealing 34 29 5 Is easy to read overall 37 33 4 Is easy to recognize the brand 33 29 4 The package is appealing 32 34 -2 Entices you to turn over package to learn more 30 32 -2 Average: 36 31 5 5 a= significantly higher at better than the 90% level of confidence b= significantly higher at better than the 95% level of confidence

6. Package Testing – Brand Attitude • Implication – • NRI surmises that the new package lead for suggesting “knowing what the customer wants” may imply that the new package represents (possibly) a new, improved version. • Importantly, there is no trade-off in “customer trust”. • Both packages are successful in conveying “trust”. • Learning– • There is little difference in brand perception between packages, with one exception -- the new package is more successful in conveying that the “brand knows what the customers want”. PACKAGING ATTRIBUTES NewCurrentNew Edge [200] [200] % % Knows what its customers want 35 27 8a Works quickly 32 34 -2 The most popular brand of xxxx 30 28 2 A brand I can trust 35 37 -2 Provides effective relief 31 30 1 Good value for the money 27 26 1 Average 32 30 2 a= significantly higher at better than the 90% level of confidence 6

7. Package Testing – Brand User Personality Perceptions of user personality provide clues about brand imagery. • Learning– • The new package appeals to the trendsetters/quality seekers and “health conscious” respondents. • The new package is also perceived to have a more modern image (less old-fashioned and less practical). PERSONALITY ASSOCIATION [Respondent impression of User of Client Brand] NewCurrentNew Edge [200] [200] % % I am the first to buy a new product 35 20 15b Trendsetter 32 20 12b Buys only the best 33 22 11b Goes for medical check-ups at least once a year 44 36 8a Realistic 39 32 7 Independent 38 32 6 Confident 30 24 6 Dependable 35 30 5 Successful 37 35 2 Smart 49 47 2 Frivolous 20 18 2 Active 45 44 1 Leader 35 34 1 Sensible 33 32 1 Industrious 32 31 1 Passive 29 28 1 Skeptic 22 22 0 Uncertain 21 23 -2 Thrifty 24 32 -8a Careful 21 29 -8a Old-fashioned 32 40 -8a Traditionalist 24 32 -8a Practical 22 31 -9b Average 32 30 2 Implication – Modern implies new. And “new” attracts trend setters. a= significantly different at better than the 90% level of confidence b= significantly different at better than the 95% level of confidence

8. Package Testing – Details • NRI package testing is conducted online with client product category users. • Test design is monadic. • Each respondent sees only one of the packages to be tested. • Sample size per cell varies by client and number of packages to be tested. The minimum sample size recommended is 150 per cell. • Costs depend on incidence of qualified respondents, number of packages to be tested, sample size and number of countries. • A topline report can be issued two weeks after start of field work. A detailed report can be issued one week later.