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November 12, 2012

November 12, 2012. Agenda. Year-to-Date Review 2013 Plans Promotions Research Media Blade Discussion Pricing Improvements Packaging Updates Personna Logo Discussion Other G eneral Updates Hair Shaper Blade Display Package C onversion Website Updates (personnablades.com).

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November 12, 2012

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  1. November 12, 2012

  2. Agenda • Year-to-Date Review • 2013 Plans • Promotions • Research • Media • Blade Discussion • Pricing • Improvements • Packaging Updates • Personna Logo Discussion • Other General Updates • Hair Shaper Blade Display Package Conversion • Website Updates (personnablades.com)

  3. What’s going on with sales? • Hair Shaper Blades Sales are up and are driving the brand’s overall increase • Consistent promotion has kept blade sales strong, but not enough to support razor sales • Hands-free technology is impacting Personna Razor sales as the market trends to guarded blade systems • Flare, the most widely distributed of the three razors, is down 36.4% • Pirouette Razor is down 68.3% • Classic Razor Kit is down 16.9% • Double-Edge Blade growth is encouraging; however, much greater potential exists if a 25% lower price point can be achieved • We continue to get requests from redistributors for pricing that is more in line with Dorco ($4.06 avg being reported by reps) • A 25% decrease would allow us to lower our current redistributor price from $7.20 carton to $5.40 carton • We have learnings from the distribution drive that moved a big volume of blades that many redistributors would reorder at that price • Carded Mini Shaper blades are up, as the barber business continues to be strong

  4. 2013 Recommended Promotion Plan

  5. What are we going to do in 2013? The following are Spilo’s recommendations for promotional activities in 2013. Finalization depends upon Personna’s approval. • Implement 4 major promotions focused on blades • Carded Mini Shaper Blades – Jan/Feb 2013 • Distribution drive – 25% off for New Distribution • Gravity Feed Display – Mar/Apr 2013 • Discount for new distribution • Hair Shaper Blade Full Service/Redistributor Discount Promotion – May/June 2013 • 10% discount with allocation • Double Edge Blade Redistributor Discount Promotion – Sept/Oct 2013 • 25% off for minimum order of 1,000 cartons • Execute 1 Spilo Hot Sheet Promotion for each two-month selling cycle • Keep Personna top of mind with customers • Execute cross promotions with Personna products and other appropriate Spilo products • Expand Trade Show exposure • We included Personna in Spilo Show Deal at Cosmoprof in 2012, which generated 43% incremental sales units vs. July 2011 • Include Personna in show discounts generated by Spilo Show Deals • Western Buying Conference – January 2013 • NEBRA Eastern Buying Conference – March 2013

  6. What are we going to do? • Drive Distribution – Full Service • Implement account-specific promotions to fill gaps in line and support items they carry. Analyze top 20 Full Service Accounts for targeted promotions. • Flare Razor Promotion • Feature the Flare Razor in a 6-piece display • Use compact display design to get product featured on counter in store • Offer 15% discount on Flare Razor Kit during promotion period • Classic Razor Kit Promotion • Feature the Classic Razor Kit in a 6-piece display • Cross utilize display used for Flare promotion • Offer 10% discount on Classic Razor Kit during promotion period

  7. What are we going to do? • Drive distribution – OTC/Full Service • Execute 6 cross promotions in Spilo’s bi-monthly Hot Sheets to drive razor handle and blade distribution • Flare Razor with Hairware Sectioning Clips • Mehaz Safety Razor with Double Edge Blades • Flare Razor with NuBone or Master Barber Comb • Toolworx by Personna Shears with Flare Razor • Magic Razor with Double Edge Blades • Monsieur Charles with Mini Shaper Blades • Feature as Buy One, Get One, or discount on the combination

  8. What are we going to do? • Promote pull-through at store level • Launch controlled pull-through promotions • Reward Program – July/August 2013 • Free additional 5 pack of Shaper Blades with the purchase of a Flare Razor • Label with QR code on Flare Razor Kit directs stylist to go online to redeem reward • While online, they must complete a brief survey • Upon completion, stylist receives one 5-pack of Personna Shaper Blades • Utilize end user contact information in future research • Support with full page ads in Modern Salon • Tag accounts who participate • Test Trade-In Program with a Smaller Account – March 2013 • Trade in your old razor for $5 off a new Personna Flare Razor Kit • Exchange is handled at store level • No requirement for store to keep or account for the old razors • Bill back based on proof of performance • Support with ad in Customer flyer

  9. Research

  10. We need to know more!! • Attain a better understanding of end user habits for current and hands-free systems • Continue Qualitative end user research to help us better position the brand • One-on-one interviews being conducted with professional stylists • Initiate Quantitive end user research • Confirm what we learn from the focus groups with larger audience via surveys

  11. Media Planning

  12. Trade Advertising - 2012 • Media Strategy - Current • Modern Salon – a monthly publication that serves and connects with salon professionals, including stylists, salon managers and salon owners • Current strategy is to keep Personna top of mind with professionals through 1/3 page ads 12X annually • Far forward positioning is requested - First 1/3 of publication is generally achieved • We rotate through Hair Shaper Blades and Flare Razor ads • Discontinued running Pirouette in 2012

  13. Trade Advertising – 2012 • OTC Magazine – a monthly publication in both English and Korean that reaches the multicultural over-the-counter stores which cater to the African American and Hispanic stylists • Run four 1/3 page ads featuring Hair Shaper Blades and Double Edge Blades • Keep Personna top of mind in multicultural OTC market • Spilo funds all print advertising

  14. Trade Advertising - 2013 • Modern Salon Media • Increase advertising to include full page and 1/3 page ads, utilizing full pages to support end-user promotions • Take advantage of bonus distribution at shows • OTC Magazine • Continue to support major redistributors who sell into the multicultural OTC market with four 1/3 page ads per year

  15. Public Relations - Trade • Align press releases with editorial calendars of top professional hair and barber publications • Partner with publications for print and online giveaways to promote Flare Razors and Hair Shaper Blades • Launchpad FREE LAUNCH • Monthly online giveaway requires participants to complete brief demographic survey • Publicized online and in print • Participate twice in 2013 – give away 25 Flare Razors per event • Build database for future research • Modern Salon – • Increase awareness and drive blade trial • Utilize Facebook page (97K fans) or eblast (44K) to invite stylists to enter to win a Personna Flare Razor • Set up a link to a brief survey • Select 50 winners from entries • Build database for future research

  16. Public Relations – End User • Personna Scholarship/Sponsorship Program for Advanced Education • To reach the younger stylists who have graduated from the basic cosmetology course and have begun their careers in the salon • The real education they get in razor cutting is through advanced classes or by mentors in the salon Options to explore: • Partner with schools offering specialized razor cutting classes • Support students with tuition, razors and blades • Sponsor the class by providing training tools (Flare and Blades) • Reward graduates with a post-graduation discount program • Graduate receives a discount card with a code valid for one year that provides them with discounts at a local distributor

  17. Public Relations – End User • Cutting Edge Styling Contest • Stylists are very proud of their work and love to share their unique skills and expertise with other stylists. They also love to get prizes for their efforts. With the added credibility of judging by the editorial staff at Modern Salonmagazine, they will submit photos of themselves with their Flare Razor and of the finished style. • Partner with Modern Salon to manage contest using their Facebook fan base (97,174 fans) • Utilize their expert editorial staff to assist in judging contest • Stylists submit a photo of themselves with their Flare and a photo of their most creative cut using the Personna Flare razor • Top three winners get a 1 year, 6 month or 3 month supply of blades and have photos published in Modern Salon or on their website

  18. Other Items For Discussion

  19. Blade Discussion • Pricing discussion • Double Edge Blades • Hair Shaper Blades • Mini Shaper Blades • Blade upgrades

  20. Packaging Updates • Confirm Spilo can continue to use the current Personna logo • Discussion regarding using “America’s #1 Brand” on packaging • Review all packaging for country of origin information • Update Hair Shaper Blades to new display-style package

  21. Personnablades.com Updates

  22. Overview • Personna has developed a new website at www.personnablades.com • Features sections for Industrial, Medical, Pro Trades and Beauty and Barber • Personna has requested that we review the site for opportunities to better connect with the visitor and provide “beauty” oriented content • Provide an easy and direct way for both distributors and consumers to link to the Spilo site • Recommend copy/image changes that are more familiar to the beauty industry

  23. Current Visitor Link • The Personna site provides a link to www.spilo.comon the individual product pages that takes visitors to the Spilo website home page • They then have to navigate their way to the “Store Locator” or “Contact Us” pages to find what they are looking for

  24. Links to Spilo Website • Recommend adding a link to each product page • “To become a distributor or locate a distributor near you, click here” • This links to the Spilo “Contact Us” page where they can choose the correct option • http://www.spilo.com/contact_us.asp

  25. Home Page – Beauty and Barber Tab • Featured Tool • Change product name to Personna Hair Shaper Blades – 60 ct carton • Category Listing • Currently lists two categories – Grooming and Hair Shaping • Expand to include Shaving

  26. Suggested Category Contents • Hair Shaping • Flare Razor Kit • Classic Razor Kit • Pirouette Razor Kit • Hair Shaper Blades – carton and card • Shaving • Double Edge Blades – carton and card • Mini Shaper Blades • Grooming • Eyebrow Shapers • B’Kini Razors

  27. Product Pages

  28. Personna Hair Shaper Blade - Carton • Product Name: • Personna Hair Shaper Blades – 60 ct carton • Item Number: BP8800 • Recommended Copy • Personna Hair Shaper Blades are made in the USA of the finest surgical stainless steel. Each blade features a glide-coated edge to ensure smooth cutting with no drag. Economical - Super sharp blades provide more cuts per blade. Dependable quality have made Personna Blades the number one choice of professional stylists for over 40 years. • Fits most standard hair shaping razors • Contains 12 packs of 5 blades each • Product Packaging Specs: • Change “tuck” to “pack”

  29. Personna Hair Shaper Blades - Carded • Product Name: • Personna Hair Shaper Blades Twin Pack • Item #: BP8820B • Recommended Copy: • Personna Hair Shaper Blades are made in the USA of the finest surgical stainless steel. Each blade features a glide-coated edge to ensure smooth cutting with no drag. Economical - Super sharp blades provide more cuts per blade. Dependable quality have made Personna Blades the number one choice of professional stylists for over 40 years. • Change Carton to Peggable Blister Card contains 2 packs of 5 blades each • Product Packaging Specs: • Remove “tuck”

  30. Personna Stainless Steel Double Edge Blades – Carton • Product Name: Ok as is • Item #: BP9020 • Recommended Copy: • Comfort-coated stainless steel blades for use in standard safety razors • Can be cut in half for use in the Magic Razor • Unique dispenser feature for single blade removal without opening box • Image: • Update with image provided by Spilo • Product Packaging Specs: • OK as is

  31. Personna Stainless Steel Double Edge Blades – Carded 5-pack • Product Name: Personna Double Edge Blades – 5 pack • Item #: BP9010 • Recommended Copy: • Comfort-coated stainless steel blades for use in standard safety razors • Can be cut in half for use in the Magic Razor • Unique dispenser feature for single blade removal without opening box • Convenient dispenser with disposal chamber • Peggable Blister Card • Image: • Update to image provided by Spilo • Product Packaging Specs: • 12 cards per carton, 12 cartons per case Not currently on site

  32. Personna Stainless Steel Mini Shaper Blades • Product Name: Ok as is • Item #: BP8900B • Recommended Copy: • Comfort-coated stainless steel blades for shaving and shaping • Use with Monsieur Charles No. 800 Razor • Easy dispensing cartridge design • Peggable Blister Card • Product Packaging Specs: OK as is

  33. Personna Classic 900 Razor Kit • Product Name: • Personna Classic 900 Razor Kit • Item #: BP0900B • Recommended Copy: • Stainless steel hair shaping razor in classic folding design. Includes blade guard for blending and shaping hair. Kit includes one 5-pack of super sharp Personna Hair Shaper Blades. • Peggable Blister Card • Product Packaging Specs: • No change

  34. Personna Pirouette Hair Shaping Razor Kit • Product Name: • Personna Pirouette Razor • Item #: BP9100 • Recommended Copy: • Put total creativity in your hands with the Personna Pirouette Razor. Lightweight and flexible, the Pirouette becomes an extension of your hand, giving you complete control. • Includes 3 design guards for blending texturizing and chunking, plus blade lock for freehand styling. • Also includes FREE 5-pack of super sharp Personna Hair Shaper Blades. • Packed in peggable box with window • Image • Update to image provided by Spilo • Product Packaging Specifications: • 4 Kits per carton, 6 Cartons per case

  35. Flare Hair Shaping Razor Kit • Product Name: • Personna Flare Hair Shaping Razor Kit • Item #: BP9200 • Recommended Copy: • Lightweight, with a soft, ergonomic handle for maximum comfort. Finger hole provides ultimate control. • Includes a blending guard to create volume and movement, and a blade lock for free-hand styling • Also Includes one FREE pack of 5 super sharp Personna Hair Shaper Blades. • Peggable blister card • Product Packaging Specifications: • No change

  36. Eyebrow Shaper • Product Name: OK as is • Item #: BP0250 • Recommended Copy: • For brows, sideburns and bikini area. Easy to use. Unique “Skin Shield” wire-wrapped blade never allows the razor to touch your skin. • Disposable • Peggable Package • Image • Update to image provided by Spilo • Product Packaging Specifications: • No change

  37. B’Kini Razor • Product Name: OK as is • Item #: BP0350 • Recommended Copy: • Narrow protected blade. Features soothing aloe vera with tea tree oil strip to help soothe sensitive skin • Curved handle shape and compact razor head easily reach sensitive areas • Disposable • Peggable Blister Card • Image – OK as is • Product Packaging Specifications: • No change

  38. Thank You!

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