Intellect Wave

1
Intellect Wave and the Competition

• Brian Anundsen, Product Manager
• Mark Waldecker, K-12 Dealer Development Manager

2
Session Objectives

• Review the sales history of Intellect to
  understand what got us here today
• Overview of the market potential
• Explain the Intellect Wave product collection
• Identify key selling features against the
  competition
• Outline the launch rollout

3
Why a new K-12 Classroom Seating product?
Artco Bell introduces Prodigy Fall of 2004
2006 NSSEA shows 9 competitors with cantilever
style product
Virco introduces Zuma NeoCon 2004
HON introduces Accomplish Fall 2005
4
Why a new K-12 Classroom Seating product?
Total Size of the K-12 classroom seating market
in millions
Artco Bell
Virco Zuma
Quality product Segment
Artco Bell Prodigy
Royal
V/S Panto Swing
HON Accomplish
Capitol Seating
Virco
Intellect
Scholarcraft
Mainstream product segment
5
Intellect Wave Product Collection
6
Why Intellect Wave?

• Intellect Wave Key Features/BAFs
• Feature Benefit
• Ribless back Easier to clean
• Passive back flex Provides for movement and
  circulation
• Molded in handle Eases lifting and moving
• Waterfall seat front Unrestricted circulation for
  comfort
• Elliptical Tubing Strength and durability

7
Why Intellect Wave?

• How Intellect Wave compares to original
  Intellect?
• More comfortable shell.
• Soft polypropylene vs ABS plastic.
• More colors.
• Available in all standard KI poly colors. (even
  CAL 133)
• More SKUs.
• Combination desk, tablet arm, pedestal chair, and
  a stool

8
Positioning/BAFs Intellect Wave

• Key Phrase stylistic design with exceptional
  comfort
• Key selling points
• Attractive clean back design
• Comfort passive back flex
• Durable elliptical tubing
• Price position mid price

9
Identify User Product Needs K-12 Classroom
Seating/BAFs (What are the questions you need
to ask to determine your customers criteria?)

• Comfort
• Seat size
• Flexible or rigid

• Image (Design)
• Aesthetics

• Maintenance
• Cleanability
• Custodial friendly

• Durability
• User abuse

• Value Proposition
• Quality
• Warranty

• Stackable
• Storage/Stock
• Cleaning

• Breadth
• Sizes
• Models

• Flexibility
• Mobile
• Collaborative

who,what,when,why,how
10
Intellect Wave Positioning/BAFs
Need Product Fit Product Fit Product Fit
Need Good Better Best
Comfort Ivy League Intellect Intellect Wave
Breadth Intellect Ivy League Intellect Wave
Value Proposition Ivy League Intellect Intellect Wave
Stackable Ivy League Intellect Intellect Wave
Image Ivy League Intellect Intellect Wave
Flexibility Ivy League Intellect Intellect Wave
Maintenance Intellect Intellect Wave Ivy League
Durability Intellect Intellect Wave Ivy League
11
Intellect Wave Competitive Overview
Systems 3000
Hon Accomplish
Flexible Workspace
Intellect Wave
Virco Zuma
Intellect
Avenir
Kick

Price
Artco Bell Prodigy
Prosper
MWall
Feature Set
12
Intellect Wave - Competition

• ZUMA (Virco)

• Advantage Intellect Wave
• Smooth, clean back
• All KI standard frame colors (35)
• Strong elliptical tubing

• Opportunity
• Ribbed back
• Limited frame colors (3)
• Weak round tubing

13
Intellect Wave - Competition

• ZUMA (Virco)

• Advantage Intellect Wave
• Smooth, clean back
• All KI standard frame colors (35)
• Strong elliptical tubing

• Opportunity
• Ribbed back
• Limited frame colors (3)
• Weak round tubing

• Key User Product Needs Met
• Maintenance
• Image
• Durability

14
Intellect Wave - Competition

• Prodigy (Artco Bell)

• Advantage Intellect Wave
• Smooth, clean back
• All KI standard frame colors (35)
• Clean design

• Opportunity
• Ribbed back
• Limited frame colors (3)
• Less refined product

15
Intellect Wave - Competition

• Prodigy (Artco Bell)

• Advantage Intellect Wave
• Smooth, clean back
• All KI standard frame colors (35)
• Clean design

• Opportunity
• Ribbed back
• Limited frame colors (3)
• Less refined product

• Key User Product Needs Met
• Maintenance
• Image

16
Intellect Wave - Competition

• Panto Swing (V/S)

• Advantage Intellect Wave
• Smooth texture is easy to clean
• Molded in GB, Wisconsin
• 20 less net

• Opportunity
• Rough texture shell
• Long Leadtime (Germany)
• Price

17
Intellect Wave - Competition

• Panto Swing (V/S)

• Advantage Intellect Wave
• Smooth texture is easy to clean
• Molded in GB, Wisconsin
• 20 less net

• Opportunity
• Rough texture shell
• Long Leadtime (Germany)
• Price

• Key User Product Needs Met
• Maintenance
• Value Proposition
• Flexibility

18
Intellect Wave - Competition

• Accomplish (HON)

• Advantage Intellect Wave
• Passive flexing back
• All KI standard frame colors (35)
• 10 less net

• Opportunity
• Stiff, non-flexing back
• Limited frame colors (3)
• Price

19
Intellect Wave - Competition

• Accomplish (HON)

• Advantage Intellect Wave
• Passive flexing back
• All KI standard frame colors (35)
• 10 less net

• Opportunity
• Stiff, non-flexing back
• Limited frame colors (3)
• Price

• Key User Product Needs Met
• Comfort
• Image
• Value Proposition

20
Intellect Wave Competitive Overview
Systems 3000
Hon Accomplish
Flexible Workspace
Intellect Wave
Virco Zuma
Intellect
Avenir
Kick

Price
Artco Bell Prodigy
Prosper
MWall
Feature Set
21
Launch Rollout

• Preview guide
• Will be mailed the week of March 3rd.
• .pdf version available (walk through Preview
  Guide)
• Technical Specifications
• .pdf will be posted next week to the PKB
• Price List
• Electronic posted by 3/1/08
• Temporary .pdf available now
• Sales Samples
• Will start shipping 3/3/08.
• All samples will be 18 cantilever chair, chrome
  frame, poly ????,
• model IWC18.??.SAMPLE
• OE 3/1/08 with first shipdate on or after June
  1, 2008
• Leadtime 4-6 weeks after June 1, 2008

22
Launch marketing activities

• Press Release submitted today
• NSSEA Trade Show March 1-3 Orlando
• Training NRT March
• NSBA Trade Show April 1-3 Orlando
• Pending Greenguard certification
• Candidate for US Communities
• Brochure - Summer 2008
• NSSEA Trade Show November 2008

23
Questions?