Successful Cases/Problem Areas

2014, July, 10thTaiwan Challenging Case Hang Pack 15g New Product Launch in modern trade Denise ChangMarketing Manager, DKSH Taiwan Ltd. DKSH DKSHPage #BackgroundFishermans Friend business was only in pharmacy channel and sales are stable in 2011.2010: 9,635 Lof2011: 11,293 LofMarket expansion in 2012 into modern trade all channels to explore volume growth opportunity.Market expansion launched 15g hang packs into CVS, PCS, Hypermart in 2012 Aug.

Challenge Cases Hang Pack 15g New Product Launch in modern trade in 2012, Aug

DKSHPage #24P Mixes for market expansionMain ChannelsFamily Mart/ OK/ Hi LifeWatsons CosmedPharmacySecondary channelsPCS, Supermarket, Pharmacy, HypermarketHyper market, Pharmacy.XFlavorExtra StrongSugar Free LemonExtra Strong Extra Stronggm15g 25g50gPackagingHang PackFoil pack in TinFoil pack 25gX2 in TinRSPNT$38 NT$85NT$125

DKSHPage #

15g Hang Packs CompetitionPX and CVS requested package size change to list in FF.Ricola, Nn Jiom, Valdas pack size is much bigger than Fisherman Friends hang pack.

DKSHPage #4FF 15g Promotion PackagingItemHang PackTin Boxgm15gX2 twin pack, 15gX1, 15g+mini Tin CVS25gX125gX225g+5g50gChannelsPX mart, CVS, PCSPCS, HyperPharmacy(Promotion Pack)

DKSHPage #Current Distribution by packageExtra StrongLemonExtra StrongChannel Type(outlets)AccountOutletNo.Tin(25g)

Tin25gX2

Tin (50g)

CVS(2968)Hi Life1293VVFamily Mart800delisteddelistedOK875VVHyper (103)Carrefour62VV

VVVVRT-Mart22A-mart19S/M (71)Matsusei71VVPersonal Care(899)Watson's448VVVCosmed364VV VPoya87Department Store(28)Mitsukoshi13VVCity Super6VVJason's7VVSOGO2VVPX (667)PX667delisteddelistedWholesaler (1633)Pharmacy1633VVVVTotal6369

DKSHPage #6TVC & Radio campaign Mini tin & merchandising in OK CVSMerchandising in supermarketMerchandising in pharmacyConsumer lucky draw promotion2013 ~2014 Marketing Mix2013 ~ 2014 FF Marketing Mix

Rx channel: B1G1CVS:B1G1Hang Pack B1G1

2012, AugHangpack new launch 2014Feb.40g stop 2014Aug, 50g new launch2014 HP delisted in PX,Family Mart

New Product Development

DKSHPage #

TVC DKSHPage #Failure Cases Market expansion to all channels with 15g hang pack.Package

Flavor2011 Sales2012 Sales2013 Sales2014 Sales YTDTin 25g&40g&50gOriginal11,293 LOF10,998 LOF2,957 LOF2,848 LOFHang Pack 15gOriginal2,049 LOF5,521 LOF2,332 LOFLemon2,448 LOF7,263 LOF842 LOFTotal:11,293 LOF15,595 LOF17,837 LOF6,022 LOFGrowth %38% 14% 19%Remark: 2014 monthly average dropped 19% v.s. 2013, dropped 8 % v.s. 2012. DKSHPage #9Hang Pack Case Hang Pack dropped since 2013, Aug.

52.8%

HP: PX single pack delisted.HP: B1G1.CVS:HiLife.Mini tin CPCVS:OK.HP: PX Twin pack delisted.40g Tin stop50g Tin New Launch

Hang Pack new listing and delisting in modern trade key accounts2012, Aug, 2012, Nov.2012,Dec.2013, May2013, July 2013, Aug, 2014,Feb2014,March2014,April2014,JuneOK CVS new listHi Life CVS, Carrefore HyperPX mart Cosmed .PX delist twin packFamily Mart CVS listList in PX, single pack listWatsons listingPX delistingFamily Mart delist lmnFamily Mart delist original.Accu outlet no.875225232832616341640834531386438643064PX returns, delisted. DKSHPage #10Key Task: Back to the Basics and rebuild FF market DKSHPage #To focus on pharmacy channel.Pharmacy channel wholesalers will be managed by DKSH Health Care to leverage health cares influence power for better in-store execution.

To prioritize distribution expansion launching new zip lock products in selected effective modern trade channels.PCS, Watsons, Cosmed.CVSBack to the Basics Focus on Pharmacy Channel First. DKSHPage #Products / Price v.s. Channels in 2015Main ChannelsOK, Hi LifePCS, WatsonsCosemdWatsons CosmedPharmacySecondary channelsSupermarket, Pharmacy, HypermarketCVS, Hyper market, Pharmacy.XFlavorExtra StrongSugar Free LemonMint / Sweet Lime / Grapefruit Extra Strong Extra Stronggm15g 25g25g50gPackagingHang PackZip lock packFoil pack in TinFoil pack 25gX2 in TinRSPNT$38 (avg $19 B1G1 free)$49NT$85NT$125

License Issue? DKSHPage #Shelf display for ZIPCheck out rental / merchandising

2015 Marketing Mix2015 FF Marketing Mix

Rx channel: B1G1CVS:B1G1Hang Pack Depletion2014~2015Hangpack stock depletion2015ZIP new launch2014 Q425g (license issue?)

New Product Development

ZIP Bus or print ads

DKSHPage #Thank you for your attention DKSH DKSHPage #Chart1611.5462.83333333331074.33333333333.45763.65767.174.8251119.33333333331194.1583333333812.9251080.10833333331893.03333333332953.051179.45833333334132.50833333331152.31108.68333333332260.9833333333608.21350.21958.4975.075259.21666666671234.2916666667470.875176.5416666667647.4166666667231.85310.375542.225219.175296.4833333333515.65833333331064.525201.41666666671265.9416666667-1042.325381.475-660.851074.951189.04166666672263.99166666671088.950.08333333331089.03333333333043.11336.08333333334379.18333333331687.575653.26666666672340.8416666667785.125362.95833333331148.0833333333566.2675.08333333331241.2833333333799.7510301829.75546.2387.6666666667933.8666666667476.7394.375871.075

HPTinTotalIMS Quantity in LOFHang Pack v.s. Tin Sales Review after HP new launch

Sheet1Column12012,AugSeptOctNovDec2013 Jan13-Feb13-Mar13-Apr13-May13-Jun13-Jul13-Aug13-Sep13-Oct13-Nov13-Dec14,Jan14-Feb14-Mar14-Apr14-MayHP6123758132,9531,1526089754712322191,065-1,0421,0751,0893,0431,688785566800546477Tin4637641,1191,0801,1791,1091,3502591773102962013811,18901,3366533636751,030388394Total10747671194189341332261195812346475425161266-6612264108943792341114812411830934871