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The Evolving WTC Market The market is evolving into a two tiered quality structure in WTC …we are also seeing a junction in purchasing drivers Green First “I want to feel good about the paper I buy” Value A balance of price & function “This product meets both my needs” Established: “Complete Package” “I want the same options I’ve used in the past and if it can be “green” it’s a plus Premium The very best quality “When I print, I want the best”
Reviewing Our Portfolio • In the white, smooth category, it’s vital we have a solution for all these needs • A premium and value option when the main purchasing driver is “established: the complete package” • A premium and value option when the main purchasing driver is “green”
Conservation™ Papers Highlights • Product • 100% PCW only, FSC Certified: 10 SKUs, 1 color , 92 brightness • 5 weights (24W non watermarked, 70T, 80T, 80C, 110C) • Common sheet sizes (8.5x11, 35x23, 23x35, 25x38, 26x40) • Higher minimums than standard on special size & weight make orders • Size : 5m# vs 2m#, Weight:: 8m# vs 5m# • Special make orders for different color or finish not accepted • Place • Test Markets: targeted merchant earned exclusive in trading area • 4 - 6 target markets • “Keep it if you earn it” - ongoing exclusive • Price • $89/cwt for text weight; +$3/cwt cover, +$2/cwt cut size • Promotion • Minimal Neenah A&P support; economical swatchbook • Focused, collaborative sales effort on targeted end users and printers • Additional sales & marketing activities could be funded with co-op funds
Benefits To You • Participation in targeted test markets to help meet a market need and grow volume • Exclusivity - basis to grow our mutual share of the environmental, value segment market • Simplicity - focused, simple offering of popular weights and sizes: 10 SKUs, all 100% post consumer fiber and FSC certified • Targeted Neenah support to help create awareness • Competitively priced, value add alternative to premium opaques with goal of keeping people in WT&C category
Benefits To Your Customers • Allows printer, end users and designers to be green and economical (premium answer for price driven, green purchaser) • Simplicity - focused, simple offering of popular weights and sizes: 10 SKUs, all 100% post consumer fiber and FSC certified • Consistent quality print performance • Recognized as part of “Neenah family”
All Four White, Smooth Offerings Play a Role Premium Environment® Papers Buyer concerned about “green” first Value Conservation™ Papers Buyer concerned about established: complete package factors first (Brand loyal, extensive offering) Green 2nd Premium Classic® Crest 100% PCW Green 2nd Value Sundance® Papers 100% PCW
Measuring and Review Performance Focus on a few key measures to determine how Conversation™ Papers pilot is working…. • Conservation pounds and revenue • 3:1 Relationship = 3 pounds of Conservation™ for every pound of Environment ® lost • Environment ® pounds and revenue • Environment® performance vs. overall Neenah Paper portfolio • Environment® performance compared to region and national performance • Total Conservation™ and Environment® pounds and revenue • Performance vs. overall Neenah portfolio • Alignment and engagement level of sales and marketing efforts • Are we focused and doing the right things together to grow?
Conservation™ Papers • Timeline • Inventory in stock and ready to ship to your warehouse • Sample sheets available in our sample department • Swatchbooks available 3 weeks after initial order is placed • Price pages available 3 weeks after initial order is placed • Ongoing quarterly updates and annual reviews to assure mutual success by reaching incremental growth targets • Conservation Papers • Environment® Papers and other Neenah Paper brands
Conservation™ Papers Appendix
Example of A&P Support • Brand Materials • Basic swatchbook • Sales sheet • Sheet Samples • Promotion • Targeted e-mails • Online • Selling Activities • Local Focus • Co-Op Funds