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Year-End Meeting Slide 2 Agenda Review Recap Key Customers Customer Class Report Professional Promotions On-Pack Promotions Examples Hot Sheet Discussion Mehaz/Signature Transition Gold Accounts Online Ordering New Products for 2010 Feedback Slide 3 Full Service Calendar Slide 4 Slide 5 Mehaz-Signature Transition Slide 6 Mehaz/Signature Transition Repackaged 20 Signature skus under the Mehaz brand in mid-August These skus are featured in the July-Dec Catalog in the Mehaz section Customer Communication: Full Service Distributor signage available to order in October Advertising in Beauty Store Business, Nails and NailPro magazines Slide 7 Gold Account Program 2009 Results November Promotion Slide 8 March Mailing Effective March 1 March 31, 2009 Orders over $1,000 qualify for 5% discount Personna Blade Factory Orders excluded Slide 9 March Results 28% of Gold Accounts took advantage of offer 72% did not participate 24% did not meet minimum order to qualify 48% had zero or negative volume during promo period 185% increase in sales vs last year for Gold Accounts who took advantage of 5% during March ($133,396 net increase) 53% increase YTD in participating accounts ($126,529) 4% increase in sales vs last year for all Gold Accounts during March ($10,966 net increase) 5.5% decrease YTD in all Gold Accounts ($92,060) Offer: 5% on orders over $1,000 Slide 10 June Mailing Effective June 1 June 30, 2009 Orders over $1,000 qualify for additional 5% in Free Goods Choose from 4 specific products to encourage accounts to try new items Hot Sock Flowery File Catty Display Melting Pot Warm Honey Wax Melting Pot Stripless Wax Slide 11 June Results 18% of Gold Accounts took advantage of offer 82% did not participate 30% did not meet minimum order to qualify 52% had zero or negative volume during promo period 144% increase in sales vs last year for Gold Accounts who took advantage of 5% during June ($86,859 net increase) 28% increase YTD in participating accounts ($88,757) Sales vs last year for all Gold Accounts during June were down 19.0% ($51,465 net decrease) 15.8% decrease YTD in all Gold Accounts ($246,502) Offer: 5% in Free Goods on Orders over $1,000 Slide 12 November/Holiday On-Line Order Special For Gold Accounts Effective November 1 November 30, 2009 Receive 5% discount on orders over $795 placed online NOTE: Customer must place their order using our online ordering service at www.spilo.com to qualify for discount Personna Factory orders are excluded from discount Mailing will be sent out to customers on 10/26/09 Slide 13 Online Ordering Slide 14 Launched on August 24, 2009 exclusively for Spilo customers First master distributor to offer online ordering Great convenience for time strapped customers Can order day or night, 7 days a week! Orders are saved so customers can quickly re-order products they use over and over Customers need to register on Spilo web site (www.spilo.com) to order products Being promoted through multiple channels: Catalog, Hot Sheets, Sell Sheets, Advertising, Public Relations, Invoice Stuffers, etc. Encourage your customers to sign up! Slide 15 New Products for 2010 Slide 16 Slide 17 Mehaz New Product Considerations Eyelash Applicator Tweezer Eyelash Comb Implement Cleaning System Metal Foot File System Slide 18 Eyelash Applicator Tweezer Overview: Double-sided tweezer: One side with rounded, pointed tips for applying single lashes Other side with crescent shape for applying strip lashes 5 length, Stainless Steel Competition (single-sided tweezer): Xtreme Lashes= $17.00 Extend Your Lashes= $15.00 Pricing: Target Distributor Price: $9.95 Suggested Salon Price: $19.99 Slide 19 Eyelash Comb Overview: Wire comb for separating eyelashes Competition: Tweezerman Professional Folding Ilashcomb= $8.00 Sepralash= $9.00 Pricing: Target Distributor Price: $4.49 Suggested Salon Price: $8.99 Slide 20 Implement Cleaning System Overview: Tablet disinfectant Activates when immersed in water Disinfects stainless steel implements Use 1 tablet per 1 gallon of water Dispenser- Disinfectant Tray Larger disinfectant tray with basket Translucent in order to see implements inside Competition: Steramine Sanitizing Tablets 100/jar= $52.49 Surflets Disinfectant Tablets, 16/box= $33.99 Pricing: Target Distributor Price: TBD Suggested Salon Price: TBD Slide 21 Additional Questions for Sales Mehaz Implement Cleaning System Tablet Cleaner Should tablet disintegrate in amount of liquid to match dispenser capacity? For example, if tray holds 12 oz. of liquid, should 1 tablet dissolve in 12 oz. of liquid instead of 1 gallon? Packaging Will jar work (as shown in previous slide)? Do tablets need to be individually wrapped? Quantity Is 100 a good quantity? Dispenser Is a translucent tray the way to go? Can we replace the existing Mehaz Disinfectant Tray (MC1000) with the proposed larger, deeper tray or should in be in addition to the MC1000? Would customers prefer a branded spray bottle? Slide 22 Metal Foot File System Overview: Stainless steel, rounded handle that can be sanitized and autoclaved Designed to cross utilize Flowery Fot Fil disposable 60 & 100 grit pads Competition: Pedi ProTool= $20.00 Pedi Replacement Pads- 80 or 180 grit, 60/pk= $16.00 ($.27 each) Tweezerman Infinity Callus Rasp with two each 80 & 120 grit replacement pads= $14.99 Replacement Pads- Six each 80 and 120 grit= $6.50 ($.54 each) Pricing: Foot File Kit: Handle with 5 each 60 & 100 grit pads Target Distributor Price: $8.50 Suggested Salon Price: $16.99 Replacement Pads (25/pk) Target Distributor Price: $6.87 Suggested Salon Price: $13.74 ($.54 each) Slide 23 Mehaz Merchandising Considerations Compact displays showcasing lower priced items Offer OTC accounts low investment/low risk merchandising options to generate brand trial Three options utilizing same base display format Manicure center Cuticle Nipper Pusher Nail Clipper Pedicure center Cuticle Nipper Ingrown Lifter Toenail Clipper Skincare center Slanted Tweezer 12x Mirror Brow Scissor Slide 24 Manicure Display Overview: Compact counter display features 3 each of: MC0888 Nippers MS331 Pushers 9MC0660 Nail Clippers Pricing: Distributor Price: $69.87 Slide 25 Pedicure Display Overview: Compact counter display features 3 each of: MC0888 Nippers MS382 Toenail Lifters 9MC0664 Toenail Clippers Pricing: Distributor Price: $74.37 Slide 26 Skincare Display Overview: Compact counter display features 3 each of: MC0212 12x Mirrors MS350 Tweezers MS371 Brow Scissors Pricing: Distributor Price: $58.35 Slide 27 Slide 28 Flowery New Product Introduction The following Flowery products will be introduced in either January or March 2010: File Catty Wild Styles D-Files Disposable Buffing Blocks Slide 29 File Catty Wild Styles Display Overview: Compact display features 18 File Catty cases with coordinating designer nail files Three each of six new exclusive wild designs Files are 5 size, 180/240 grit Pricing: Distributor Price: $29.16 ds Suggested Salon Price: $58.32 ds ($3.99 ea) Item #FCD09-18C Available= January or March 2010 Slide 30 File Catty Wild Styles Item #FC09-3Item #FC09-4 Item #FC09-2 Item #FC09-1 Item #FC09-5 Item #FC09-6 Slide 31 Disposable Buffing Blocks Overview: Disposable, 2-sided 180/180 grit white buffing blocks Pre-cut, 1 x 1.5 size Packed in peggable, reusable polybag 24 per pack Pricing: Distributor Price: $1.49 pk or $.06 each Suggested Salon Price: $2.99 pk or $.12 each Item #DFBB1-24 Available= January or March 2010 Slide 32 Flowery New Product Considerations Files and buffers with patented antimicrobial technology Callus Remover Spray New Seasonal File Catty Displays D-Files Disposable Nail Sponges Gel Toe Separators Additional Considerations Slide 33 Antimicrobial Files & Buffers Overview: Incorporate patented antimicrobial protection and branding Offer added value to top selling files Files printed with: Flowery logo Patented Antimicrobial Protection or similar verbiage/icon File name Grit Features Item # Competition: Tropical Shine- Washable, Sanitizable Files= $.99 each Soft Touch- Disinfectable & Antibacterial Files= $.99 each Pricing: Keep existing distributor pricing since files are at high end of the market Patented Antimicrobial Protection Top selling files include: Black Beauty Double-Sided Garnet Silver Streak Ultra Fine Tapered Gold Digger Duraboard 1 & 2 4-Way Micro Buffer Slide 34 Callus Remover Spray Overview: Spray on system for direct application Milder formula to reduce harshness Competition: Callus Away!= $6.99 (1 oz. w/free file) 2008 Spilo sales= $18,780 Callus Eliminator= $4.99 (1 oz.) 2008 Spilo sales= $2,252 Dr. Gs 2-in-1 Antimicrobial Callus & Cuticle Remover= $7.95 (4 oz.) Pricing: Distributor Price: TBD Suggested Salon Price: TBD Slide 35 Additional Questions for Sales Flowery Callus Remover Spray Is a spray dispensing system ideal? Would a roll-on dispenser work? Are there additional features that need to be considered? Scent? 2-in-1? Callus Away! offers a free file Dr. Gs has a 2-in-1 product Is 1 oz. size okay? Do we need a larger, professional size? Slide 36 Seasonal File Catty Displays Overview: Compact display features 18 File Catty cases with coordinating designer nail files Files are 5 size, 180/240 grit Seasonal Themes: Breast Cancer One new exclusive design incorporating elements of file design on case cover Holiday Three each of six new exclusive designs incorporating elements of file design on case cover File designs will have fun names for additional Must Have appeal and differentiation from the competition Example: Holly themed file named Jolly Holly Pricing: Target Distributor Price: $29.16 display Suggested Salon Price: $58.32 display or $3.99 each Slide 37 Disposable Nail Sponges Overview: Hexagon shaped, fiberless pad will not scratch when used to remove polish, residue and dust Uses less remover than regular cotton ball Disposable for client safety Competition: Ibd, 80/box= $4.00 ($.05 each) Cotton Balls 200/Bag= $3.58 ($.02 each) Pricing (100/Zipper Bag): Target Distributor Price: $1.99 Suggested Salon Price: $3.99 ($.04 each) Slide 38 Gel Toe Separators Overview: Made from silicone material to provide extra support and comfort Can be cleaned using soap and water Longer lasting than standard foam separators Antimicrobial??? Competition: Footsmart U-Shaped, set of 8= $9.99 ($2.49/pair) Pricing: Target Distributor Price: TBD Suggested Salon Price: TBD Slide 39 Additional Questions for Sales Flowery Gel Toe Separators Will adding antimicrobial be an attractive selling feature? What is the best pack size? Polybagged pairs? Drum display? Other? What color(s) do you suggest? Introduce in one color or multiple colors? Slide 40 Additional New Product Considerations Submitted by Sales Cuticle Pusher with Soft Curve OPI educator was using it and all customers said that this implement is the best that they have ever used. Heated Bath with water for keeping Removers warm Removers [such] as a cold acetone are performing much better if they are warm (not hot, flammable!) Gel for natural nails A gel and nail polish in one for keeping natural nails more flexible and long lasting Cuticle Remover Removes unwanted cuticle growth from fingers and toes Slide 41 Implements Slide 42 Toolworx by Personna New Product Considerations First Half of 2009 Limited Edition Fashion Mini Tweezer Display Compact Mini Tweezer/Mirror Display (Fashion mirrors/Coincide with mini tweezer designs) Eyelash Applicator Eyelash Brush Second Half of 2009 Limited Edition Fashion Mini Tweezer Display Toolworx by Personna for Men Deluxe Nose Hair Scissors Nail/Toenail Clipper Set Slide 43 Mini Tweezers Display Spring is in the air Overview: Limited Edition Mini Tweezers 16 piece mini tweezer display featuring four new patterns Precision slanted tip tweezers Stainless Steel No open stock will be available Slide 44 Mini Tweezers Competition: Body Toolz Tiny Tweezers=$4.99 ea Four colors (pink, black, stainless steel and red) Esthetic Plus Four colors (pink, black, white and red) Available Styles: slanted, pointed and slanted/pointed Distributor Price $8.00 ea slanted $9.50 ea pointed $9.50 ea slanted/pointed Tweezerman Professional Hot For Dots Mini Tweezers=$15.00 Four different fashion polka dot prints Slide 45 Preliminary Mini Tweezer Designs Being Considered Pricing: Target Distributor Price: $39.84 ds Target Each Price: $2.49 Blooming Flowers Vivid Ladybugs Cheerful Butterflies Busy Bees Slide 46 Additional Questions for Sales Preliminary Mini Tweezer designs-Spring Is a Spring design concept appealing to our customers? Should we offer less mini tweezers in the display? Currently we offer 16 mini tweezers. Should we consider only 12 tweezers? Should we continue to offer open stock? Slide 47 Mini Tweezers Fall Designs Overview: Special Edition Fall/Winter Mini Tweezers 16 piece mini tweezer display featuring four new patterns Concept 1: Neon Collection-Animal Patterns Concept 2: Rhinestones Concept 3: Fashion Stainless Steel Precision slanted tip tweezers No open stock will be available Pricing: Distributor Price: $39.84 ds Target Each Price: $2.49 Slide 48 Concept 1 Neon Wild Animals Wild Snake Brisk Zebra Roaring TigerForceful Leopard Slide 49 Concept 2 Rhinestones Star Butterfly Heart Flower Slide 50 Concept 3 Fashion Patterns Slide 51 Additional Questions for Sales Mini Tweezers Designs Concepts-Fall Are any of the design concepts appealing? Slide 52 Mini Tweezers and Mirror Display Overview: Fashion Mini Tweezers with Fashion Compact Mirrors Compact over the counter display Featuring eight fashion pattern tweezers along with eight compact fashion pattern mirrors Display dimension: 7.25 (w) x 5.5 (h) x 4 (d) Pricing: Target Distributor Price: $46.99 ds Target Individual Distributor Price: Mini tweezers: $2.49 ea Mirrors: $3.30 ea Mirror and tweezer designs may vary Slide 53 Additional Questions for Sales Mini Tweezers and Mirror Display Is the animal pattern design concept appealing? Is offering four tweezers and four mirrors of each pattern sufficient? Slide 54 Eyelash Applicator Kit Overview: Easy eyelash application with no mess Contoured tip of applicator provides precise, gap-free placement of false eyelashes Soft and anti-bacterial tip is gentle to the eye Removes lashes easily for later use Soft, anti-bacterial storage stand retains natural lash curve Competition: Sephora=$10.00 Pricing: Target Distributor price: $3.99 Suggested salon price: $7.99 Slide 55 Folding Eyelash Comb Overview: Perfectly spaced, metal teeth glide through lashes to remove excess mascara Comb cleverly folds in to protect teeth when not in use Competition: Esthetic Plus Folding Eyelash Comb= $5.50 Tweezerman Professional Folding Ilashcomb= $8.00 Sepralash= $4.50 Pricing: Target Distributor Price: $3.49 Suggested Salon Price: $6.98 Slide 56 Potential Product Line Extension Toolworx by Personna for MEN Slide 57 Deluxe Nose Hair Trimmer Overview: Tool provides pain-free clipping with its unique, built-in "nick-proof" design Squeeze handles rotate the sharp interior blades Sharp cutting blades never come in contact with skin Includes handy brush for tool cleaning Competition: Esthetic Plus Nose Hair Trimmer= $8.00 ea Tweezerman Professional Trimmer with Brush= $15.00 ea Pricing: Target Distributor Price: $3.99 Suggested Salon Price: $7.99 Slide 58 Nail Clipper Overview: Extra durable, heavy duty clipper designed for men Clipper features sharp, strong cutting edges for precise cuts and long lasting use Stainless steel Competition: Tweezerman Professional Nail Clipper= $5.00 Tweezerman Professional Toenail Clipper=$5.00 Pricing: Nail Clipper: Target Distributor Price: $2.10 Suggested Salon Price: $4.10 Toenail Clipper: Target Distributor Price: $2.20 Suggested Salon Price: $4.40 Slide 59 Moustache Scissors Overview: Sharp, straight blades for precise trimming of moustache, beard and brow hairs Stainless steel Competition: Esthetic Plus= $13.00 ea Body Toolz= $9.99 ea Tweezerman Professional= $12.00 ea Pricing: Target Distributor Price: $4.89 Suggested Salon Price: $6.99 Slide 60 Additional Questions for Sales Potential product line extension Is it viable to offer a male product line in Toolworx by Personna? Do you get requests from customers for these types of products? Slide 61 Shears Slide 62 New Product Considerations Products: Magic razor Straight razor Razor strop 5 Professional Shears Slide 63 Magic Shaving Razor Overview: Razor for shaving neck hair and or shaving around the ears Razor takes double edge Personna blade Razor will include two double edge Personna Blades Competition: Diane: $3.59 ea Personna: $4.68 ea Pricing: Target Distributor Price: $1.75 Suggested Salon Price: $3.50 Slide 64 Straight Razor Overview: High quality razor with sharp carbon steel blade Sharp straight razors are perfect for the classic hot-towel barber chair shave Razor can also be used for finishing necklines and trimming sideburns Competition: Body Toolz= $15.99 Pricing: Target Distributor Price: $7.50 Suggested Salon Price: $15.00 Slide 65 Razor Strop Overview: Purpose of stropping is not to remove material but rather straighten up and align the microscopic teeth that are the edge of the blade Two separate strops Leather and canvas Leather is used for fine fine edge alignment stropping prior to the shave Canvas is used for coarse edge alignment prior to shave Includes swivel hanging clip Competition: Body Toolz= $24.99 Pricing: Target Distributor Price: $11.99 Suggested Salon Price: $23.99 Slide 66 5 Professional Shears Overview: Professional Japanese stainless steel Hollow ground blades New ergonomic handles Adjustable tension Removable finger rest Competition: Esthetic Plus= $30.00 Body Toolz= $39.99 Diane= $44.99 Pricing: Target Distributor Price: $16.75 Suggested Salon Price: $33.58 Additional questions for sales: What additional size shears? Limited edition shears with fashion patterns? School kits? Option 1 Option 2 Slide 67 Additional Questions for Sales 5 Professional shear Please advise which shear style you would like us to introduce Option 1: Ergonomic finger hole design Option 2: Classic design Slide 68 Slide 69 New Product Development Products: Heat Mi Rollers Fashion patterned duck bill clips 2 different fashion patterns Ultimate Butterfly Clips New stylish salon mirror Ultimate butterfly clips Rubberized crocodile clips Male mannequin head Black mannequin head Slide 70 Heat Mi Rollers Overview: Rollers create fuller longer lasting curls Metal core provides quicker drying time Anti-static rollers Introducing 6 roller sizes.95 (24mm) (6/pack) 1.10 (28mm) (5/pack) 1.41 (36mm) (5/pack) 1.57 (40mm) (4/pack) 1.73 (44mm) (4/pack) 1.97 (50mm) (3/pack) Pricing: Target Distributor Price: $2.75/pack Suggested Salon Price: $5.50 Slide 71 Duck Bill Clips-Animal Patterns Overview Clips with wild animal patterns Option 2: Zebra Option 1: Leopard Extra strong spring to ensure a secure hold 4 clips per card Featuring one fashion pattern per pack Pricing: Target Distributor Price: $2.60 Suggested Salon Price: $5.20 Option 1: Leopard Pattern Option 2: Zebra Pattern Slide 72 Ultimate Butterfly Clips Overview: Continue to build top selling product line Clips have double rowed teeth, power tension springs and high heat resistance Ideal for holding large sections of hair Four clips per pack Pricing: Target Distributor Price: $3.50 Suggested Salon Price: $7.00 Slide 73 Overview: Perfect for sectioning hair during coloring, cutting and styling services Unique double spring design automatically adjusts to hold any amount of hair 4/pack Competition: J&D Big Mouth=$2.00/cd (3/pack) Diane Gator Clips= $2.89/cd (3/pack) Pricing: Target Distributor Price= $1.99/cd Suggested Salon Price=$3.98 Rubberized Crocodile Clips Slide 74 Additional Questions for Sales Crocodile Clips Does this item still appeal to our customers? Do you feel we can still compete in the market if we introduce this item at this time under the HairWare line? Slide 75 Salon Mirror Overview: Black handheld stylish salon mirror Rubber grip handle for more comfortable hold Mirror Size: 12x7 Pricing: Target Distributor Price: $3.99 Suggested Salon Price: $7.98 Slide 76 Male Mannequin Head Overview: 100% human hair 18-20 brown hair Great for the following applications: Barbering techniques Clipper cuts Fading Flat-topping and layering Competition: Burmax= $24.95 ea Marianna= $32.95 ea Pricing: Target Distributor Price: $23.99 Suggested Salon Price: $47.98 Slide 77 Black Mannequin Head Overview: Beautiful high quality black mannequin 100% human hair 18-20 medium straight black hair Greater density of hair Competition: Diane= $38.99 ea Burmax= $27.95 ea Marianna= $26.95 ea Pricing: Target Distributor Price: $24.99 Suggested Salon Price: $49.98 Slide 78 Additional Questions for Sales Potential new product line addition: New stylish sundries? Elastic bands Headbands Claw clips Barrettes Any additional new product recommendations? Slide 79 Slide 80 Metal Comb Attachment Overview: All metal attachment combs Durable, longer lasting combs Pricing: TBD Slide 81 Additional Questions for Sales Metal comb attachments Should we consider adding metal combs to our Speed O Guide line? Do you get requests for this style comb attachment? Slide 82 Slide 83 Melting Pot New Product Considerations Pre- and Post-Wax Treatment Products Build the Melting Pot Brand Offer value by adding two-in-one treatment products Product names emphasize the two-in-one value Slide 84 Clean & Numb Wax Prep Overview: Cleanses skin to improve wax adhesion Slightly desensitizes area to be waxed for more comfort 8 ounce spray bottle Competition: Gigi Pre Hon Lotion 8 oz - $10.49 Gigi Numbing Spray 1.5 oz - $10.49 Pricing: Target Distributor Price: $3.98 Suggested Salon Price: $8.99 Slide 85 Cool & Clean Wax Finish Overview: Removes all traces of wax residue Cools and soothes epilated skin 8 ounce bottle Competition: Gigi Wax Off 8 oz - $6.49 Gigi After Wax Cooling Gel - $7.49 Pricing: Target Distributor Price: $3.98 Suggested Salon Price: $8.99 Slide 86 Additional Questions for Sales Wax Treatment Products What other features would differentiate or make this more of a value to the end user: Scented product? Antiseptic features? Alternate delivery system spray, roll-on? Are 8 oz sizes appropriate for this line? Are there other waxes we should consider adding to this line? Brazilian? Other ingredients/features? Slide 87 Slide 88 Pink Flare Razor Overview: Flare Razor Kit in pink for Breast Cancer Promotion Includes 5 pk of blades and blade guard Include pink ribbon on package Donation to breast cancer research Competition: Feather Razor Kit: $60.00 Pricing: Target Distributor Price: $8.50 Suggested Salon Price: $16.99 Slide 89 Additional Questions for Sales Personna Pink Flare Would this be more appealing to the end user if we were able to offer it at a lower salon price than the current Flare by eliminating the 5-pack of blades? (No blades included) How much lower would it need to be? Current salon is $16.99 with free 5-pack of blades. Is the Free Blade message on the current Flare package an important selling feature for this item? Slide 90 Flare Stylist Kit Overview: Kit in clear vinyl bag containing Flare Razor, 1 pack of Shaper Blades, HairWare Styling Comb, HairWare Tail Comb & HairWare Sectioning Clips Insert card describes kit contents Present as value pack Pricing: Target Distributor Price: $8.50 Suggested Salon Price: $16.99 Slide 91 Additional Questions for Sales Flare Stylist Kit Does this kit need to be offered at the same price as the Flare alone? Value kit with free accessories? Could it sell for slightly more with a value statement included such as A $30.00 value for only $19.99? The Suggested Salon Price for Flare alone is $16.99 Do we need to have two combs? Are there other accessories that would be appropriate to add or put in place of what is shown on the previous slide? Slide 92 Additional Feedback