BrandWater The evolutionary concept of mineral water with individual labels

1
BrandWater The evolutionary concept ofmineral
water with individual labels
2
Agenda

• Presentation of Company Products
• The Business Strategy
• The strategy of external use BrandWater
• Approval of Distribution

3
Company Products International

• Company Products International A/S is founded in
  2005 and is the owner of the unique concept
  BrandWater and owned by Morten Ernstsen and
  Klaus Brink
• Basic idea is to develop techniques, system and
  marketing concepts based on customised product
  ideas
• CPI owns the concept, trade names and patents,
  and manages logistics, procurement, marketing and
  IT

4
Company Products International - sales

• Company Products International is active in 12
  countries in Europe
• DK Company Products A/S (Aarhus)
• DE Company Products GmbH Co.KG (Husum)
• NL Company Products B.V (Rotterdam)
• UK Company Products Ltd. (London)
• SE Company Products (Malmø)
• NO MikroPartner (Oslo)
• FR, Be, AT, CH, FI, IE Company Products
  International
• East Company Products International
• Until now sold 15 mio. bottles over 24 month

5
Business strategy

• Target
• To develop tailor-made bottled individual label
  mineral water for every company with more than 10
  employees for internal and/or external use
• Starting points
• 2 mayor overall trends
• The significance of customised products.
• The tendency to drink of bottled water or just
  water
• The choice of a supplier is mainly based on
  security (product/supplier/confidence) loyalty
  and quality of the product.
• The focus of the concept flexibility, quality
  and service

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Why bottled water

• The Product water
• basic need for a healthy life (more energy,
  mental and physical well-being)
• part of a cool and healthy lifestyle
• Important tool in the fight against
  obesitas(the drinking of water is stimulated by
  government, world health associations etc..)
• The consumption of water is increasing (vs. soft
  drinks)
• Average consumption min. 1 ltr. pr. day
• As communication tool
• Average contact time with the message on a bottle
  30 min.
• Out of studies confirm communication through
  bottled water is 20 times more effective than
  leaflets
• Low cost

7
Use of bottled water

• For external communication
• As information medium (new housestyle, new
  structure, invitation, mailing, personal
  recruitment ...)
• In-car marketing (lease cars, carrepair, glas
  repair,..)
• In-store marketing (communicate promotions,
  future activities,..)
• Give-away (at fair, congress, )
• Sponsormedium during events
• Co-advertising (sell a part of the label,
  sponsors)
• Fundraising
• For internal communication (daily use, meetings,
  opening factory, product introduction, new
  employees, company events)

8
Decision process and market potential
Internal consumption
External use
XXXX companies
COMPANY WATER Marketvolume ?? M liter
BRAND WATER Market volume ?? M liter
XXXX companies
XXXXX companies
DK figures Potential in total 40.000 companies
with more than 10 employees Represent approx. 1M.
employees. Yearly consumption of soft drinks,
water etc 250M. litres
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Company Water

• Water for Internal use for employees and
  meetings, catering and house brands
• Min. yearly contracts of 100.000 bottles.
• 90 logistic solution, 10 internal communication
• Focus on quality, safety and logistic-solutions,
  as warehousing, reordering, servicing
• Competition against branded water and tap water
• Sales Strategy Trough direct sales

10
Brand Water - the ultimate flexible concept

• Water for external use or marketing issues,
  promotion, events, giveaways
• Min. order 1 pallet
• 90 marketing and 10 logistic
• Focus on flexibility and marketing opportunities
• Competition against other media
• High margin gt indirect sales through yearly
  agreements with distributors primarily in the
  promotion sector, business gifts and event
  organisations
• Sales Strategy Trough dealers

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Mineral Water Husumer Mineralbrunnen

• Harmony Mini 0,33 ltr
• 1 pallet 1764 bottles (transp) also 1004
• Harmony Mini Blue 0,33 ltr
• 8 pallets
• Harmony Classic 0,51 ltr.
• 1 pallet 1512 bottles (transp, blue, black)
  also 648
• Harmony Classic Blue 0,51 ltr.
• 1 pallet 1512 bottles (black)
• Harmony Media 0,51 ltr.
• Specials
• Ekspress 10 days from deadline
• Carbonated from 4 pallets
• Sportscap from 2 pallets
• MediaLabel from 8 pallets

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Cooler assortment

• CCC80 cheap and easy
• CCC90 - silent
• VOC75 specially for retail

13
BrandWater

• The ultimate flexible concept
• based on bottled natural mineral water

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Goals for BrandWater

• To build a distribution network in Europe based
  on the Brand Water concept to sell 200M bottles
• Expected number of distributors approx 600
• 20-30 selling between 1.000.000-3.000.000 bottles
  (in total 20-90 M bottles)
• 100-200 selling 300,000-1,000,000 bottles (in
  total 30-100M bottles)
• 400-600 selling 30,000-300,000 bottles ( in total
  12-180M bottles)

15
Demands to be a distributor

• Financial approval
• Follow administration, marketing and operational
  guidelines
• Have access to support facilities to make labels
• Necessary market investment
• Minimum sales 30,000 bottles
• Expected start costs

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Brand Water - distributor

• Distributor
• General Dealer
• BrandWater Dealer
• BrandWater Partner

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Brand Water - distributor

• Dealer
• Test-period 3-6 month
• Dealer pricelist

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Brand Water - distributor

• BrandWater-dealer
• Distribution-agreement min. 30.000 bottles a year
• Access to the Label Generator/for ordering
• BrandWater-dealer pricelist
• Start costs
• Alternativ A 1500 Euro (3000 Euro split CPI /the
  dealer)
• Introduction programme
• CCC80 with own label
• 1 pallet of Harmony with own label
• Marketing package (Manual, Saleskit, Ad kit)
• Web-site
• Alternativ B 750 Euro
• Introduction programme
• Marketing package (Manual, Saleskit, Ad kit)
• Website

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Brand Water - distributor

• BrandWater Partner
• Distribution-agreement min. 100.000 bottles a
  year
• BrandWater Partner-pricelist
• Partner fee 500 Euros pr. month
• Productdevelopment
• Marketing/Marketdevelopment
• 2 Yearly meetings
• Ex. 100.000 60 pallets (10 salespeople, 2
  clients, 3 pallets)

20
Distribution-structure
BrandWater-Partner
BW Partner pricelist Partner-agreement 500
Euro/mth Productdevelopment Marketdevelopment Clie
nt forward
BrandWater-Dealer
BW Dealer pricelist Distribution-agreement Startfe
e -1500 Euro 1 CCC80 displaybox 1
pallet/Harmony Brochures Marketing-CD Website Labe
lgenerator Education
Dealer
Dealer-pricelist Buying agreement Manual 1
collo/bottle samples


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Brand Water - actions

• Approval of distributorship
• Meeting
• Financial and Organisational approval
• Contract/agreement
• Action plan I
• Testperiode 3-6 month
• Actionplan II
• Official dealer
• Education in IT and systems
• Education in products and sales
• Actionplan III

22
Brand Water - offer

• Attractive and competitive prices
• Door-breaker. Running business.
• Extra margin min. 10 cent pr. bottle (approx.
  150 Euro/pallet)
• Only ordering and labels. Company Products takes
  care of all logistics and production.
• Approved concept.
• Everyone company is a potential client.