Presenter Name | Company Name

Despite a sluggish economy that has motivated some consumers to brown-bag it, the lunch meat category still faces lower usage levels due to negative health perceptions and elevated meat prices. Brands who hope to combat these demand-dampening trends and expand usage need to innovate, both with new products and new lunch meat positioning that will inspire new lunch meat occasions, such as snacking. Sarah Day Levesque, Food Analyst

What does that mean? Means we need to

Improve

Innovate

Inspire

61% of shoppers indicate that the type of meat is the primary purchase motivator

Look for freshness & quality

Things like the look, taste & texture of roasted turkey or baked ham

Has potential to be a highly sensorial experience: based on taste, texture, & aroma

Enjoy moist, not dried out, but not slimy or preserved

Is healthy, and can be used for multiple meal items

Source: Acosta Shopper Community Smithfield Lunchmeat Shopper Study

Packaging is important, and can drive sales

But consumers dont want to pay for additional packaging

Being able to determine freshness through package very important

Attractive & functional

The package itself is an important signal to the consumer

Like the look & feel of a package that suggests a quality product, without being too expensive

Satisfy an attractive price point for the consumer while maintaining solid margins?

Create a product that is both fresh & versatile?

Develop packaging that demonstrates both quality & affordability?

Compete in an increasingly competitiveand crowdedmarketplace?

1 lb of seasoned, spiral ham with the quality and flavor youve come to know with a whole new take youll love

A great value with easy to open, securely sealed packaging to ensure freshness

An affordable price point that contains a sizeable quantity of meat

Completely aligned with the Smithfield heritage, emphasizing our local, all natural roots and focus on quality.

A true point of differentiation, as no other company provides the spiral ham cut, the intense flavor, or the amount of pork for the reasonable price as we do.

Savvy Homemakers

93% female

Quality of high importance

Use meat for more than just sandwiches

Consumer trends show us that other uses for lunch meat are growing. We believe that the Small Smithfield can really expand and own this category

The Smithfield Small Spiral is more than just lunchit can be used as an entre on its own, added to things like eggs & salads, or used to complement soups, pizzas, pastathe opportunities are endless

Tubs showing 5% growth

TOTAL U.S. - MultiOutlet

Current 52 Weeks ending Aug 3, 2014

Dollar Sales

Dollar Sales

% Chg YrAgo Volume Sales

Volume

Sales % Chg

YrAgo

Package Lunch Meat $4,889,121,280 -0.3 1,202,613,120 -1.1

TUB PLM $1,822,449,152 4.4 317,869,760 5.1

4X6 PLM $322,967,488 -9.5 77,537,144 -10.0

SHELF/WELL PLM $2,294,276,352 -0.3 708,393,280 -1.3

PEG PLM $449,428,416 -9.9 98,812,952 -9.3

We have crafted a deli product that perfectly captures what consumers want: healthy & versatile without sacrificing flavor.

We have crafted a deli product that perfectly captures what consumers want: healthy & versatile without sacrificing flavor.

Dollar share dominated by just a few brands

Average unit price related to market share

High concentration of products at lower price point,

Some gourmet options towards the higher end

No one has capitalized on sweet spot in between, at about$6

Positive signal to our target segment: this is a high quality product

Improved brand perception, aligning with Smithfields ideal positioning strategy

Work with existing partners

Demonstrate shelf space value

Located with other TUB products

Positioned in between deli meats and ready-to-eat meat entrees

Packaging emphasizes the Small Smithfield Spirals all-natural, locally sourced & healthy position

Clearly demonstrates spiral cut and enticing, holiday-quality meat

Marketing & advertising campaign will emphasize Smithfield values: take a journey with flavor, enjoying the world of options at your fingertips from a brand

Natural, local, delicious

High quality at a price you wont believe

Integrated marketing campaign to reach consumer

Offline

TV spots, coupons, leverage existing products

Online

Bloggers

Facebook recipe share, coupon distribution, photos & testimony, cooking ideas

Twitter #spiraling

Extensive, extremely sharable content on Pinterest

Improvement

High quality

High margin

Healthy AND delicious

Doing what we do best, even better

Innovation

Revolutionary, transitional product that works as a meal OR as a lunch meat

Transforming an old favorite

Truly capitalizing on the Smithfield brand while breathing new life into lunchmeat positioning

ExcitingThis is healthy, high-quality meat from a company that

prides itself on being the brand you trust to feed your family during the holidays. Now you can have that holiday quality everyday with Smithfield small spiral cuts, a new product that takes the local farm, high quality ham you love and makes it easy to enjoy on sandwiches, salads, pastas or even alone.