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Business Plan Ashwani Choudhary Joel Neeb Jon Petrucelli Ross Robinson Jared Thain Dave Watkins Andrew Zoppo Jay Vinson

Business Plan Ashwani Choudhary Joel Neeb Jon Petrucelli Ross Robinson Jared Thain Dave Watkins Andrew Zoppo Jay Vinson

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Business Plan

Ashwani ChoudharyJoel NeebJon PetrucelliRoss RobinsonJared ThainDave WatkinsAndrew ZoppoJay VinsonThe MarketConsumers are changing the way they purchase goods. The villain is not keeping up with the changing marketing options. 72% of Americans now use their mobile devices while shopping. E-commerce recently reached an online high $50B in sales.

While online marketing has blossomed and grown incredibly capable (Amazon because you purchased, Recommendations etc.), brick and mortar stores are struggling to capture those dollars.

According to a recent study by Wharton, apparel is the second most targeted product for showrooming.

For example, Best Buy and Circuit City have dealt with Showrooming customers trying out products in store and then making purchases online.2The Market (cont.)People are growing numb to email advertising these days only 14% of emails from stores are even opened.

Marketing has been slow to change since the 90s. Started with newspaper, radio, and mail, moved to commercials, emails in the 90s.

Brick and mortar stores are trying to convert more window shoppers into buyers by leveraging consumer mobile trends Also, by finding ways to collect data from consumers so they can better market to them.

3Marketing Today1% of traditional coupon offers are redeemed

American Eagle, one of the few companies using mobile geofencing has experienced 65% response rates - 95% of these text messages are read

Walmart sold $460B last year in store, while Amazon only made $61B online (Forbes). http://www.forbes.com/sites/clareoconnor/2013/04/23/wal-mart-vs-amazon-worlds-biggest-e-commerce-battle-could-boil-down-to-vegetables/

10% Mobile Advertising - 20% Geofencing Mobile Advertising

4GeoFencingGeofencing is a feature in a software program that uses GPS to define geographical boundaries (a geofence is a virtual barrier)

Mid-size stores are slow to adopt this option for 2 reasons according to the Wall Street Journal

Cost prohibitive costs about $100k to set up their own internal system.Privacy Concerns consumers are cautious about sharing personal information5Survey Results

21%Hesitant to share personal informationWould share info for more customized coupons 69%

(source: 75 customer survey results)Of that 21%...Did a market research analysis, and of more than 75 respondents, only 21% said that they found data gathering of shopping habits invasive. Keep my receipts, I dont care if you know what I purchased. Of that group that felt like their privacy was invaded, 69% said that they would no longer feel like their privacy was invaded if the shopping data was gathered to provide them with coupons tailored to their shopping habits. This makes sense, we do this already with our location data for Google maps. This will be a marketing tool for successful brick and mortar store companies, and the solution will be at the nexus of the needs of the consumer and retailer.

6Emerging Market

1%Redemption Rate

20%Redemption RateGEOFENCING

(source: invenuemobile.com)

10%Redemption RateMobile AdvertisingSolution BenefitsRetailerClient IntimacyPull Shoppers into storeClear out old inventoryNo Cost Revenue IncreaseIncrease Revenue and ProfitMobile PresenceMobile InteractionsConsumerPersonalized OffersTailored to LocationMoney SavingsTime Savings

CompetitionBuild Custom Development with a Partner or Develop In-house

Shopkick uses geofencing to send consumers kicks reward points if they visit a store close byLoyalBlocks uses geofencing to send consumers tokens reward points for visiting a nearby storePlacecast uses geofencing to send store coupons to consumers when they are in the proximity

Retailers can choose not to do anything

Shopkicks - Once consumers collect enough kicks, theycan redeem them for different products and services.

LoyalBlocks - is similar to Shopkicks but offerstokens.

In interviews with retailers, a few mentioned these types of services butexpressed concern being bunched together with their competitors into one app.

Takeaway plenty of proximity based coupons via push messages or text alerts, but nothing that is tailored to customer desires and previous purchasing habits

9NearBuysCustomer Data Intelligence Innovations (CDI) provides mid-market retailers with a cost effective, mobile marketing platform enabling them to deliver targeted offers and messages to customers mobile devices in close proximity to their stores.

The 4th Dimension of Modern Mobile MarketingCore Infrastrucutre. SQL, .NET based Packaged Apps Speed, Fast, Flexible, Cloud, Elastic.MS CRM or SFDC and Silverpop/CoreMotives or Exact Target.Azure Cloud. Retailer/B@B UI Web based portal storing all info back in our Cloud Infra.Consumer Preference Center Web UI to register, store preferences and request offers. Tied to their Rewards/Affinity UN/PW.Mobile UisAndroid and IphoneDownload. Heavy Investment.Key Benefits

Cloud - Cost Effective & ScalablePackaged Apps fast and flexible to deploy. Upload, Security, API, Cloud, DB, UI, Reporting, Workflow.Native Mobile Apps Best User Experience Push from Apps, SMS and Email. Mobile Proximity enabled.Modern Mobile Marketing 4th Dimension GPS for Proximity.

10Key FinancialsKey FinancialsSales & Marketing PlanBuild It- Month 1-3Crawl- Month 4-8 Walk- Month 9-12Run- Month 13-on

061020

Sales & Marketing Plan (cont.)

Automatic e-mail sent to customersReferral Program

Investment OpportunityWe are requesting an investment of $1M for a 20% equity stake in the company.

Cash will be used to cover our Development and Sales and Marketing in year one.

Key FinancialsManagement TeamWe know how to Create Revenue!79 Years of Sales, Business Development, and Marketing Experience39 Years of Sales23 Years of Business Development17 Years of Marketing

Also 40 Years of Operations and IT Experience

Team of Proven Leaders and Operators with deep execution intelligence within the entrepreneurial realm!

SummaryNEARBUYS is the easy to use one-stop shop for retailers to take advantage of emerging marketing opportunities

Solution is 20X more effective for retailers

Questions

CDI Solution Overview

Key BenefitsCloud Proven, Cost Effective & ScalablePackaged Apps Fast, Elastic, FlexibleNative Mobile Apps Best User ExperienceModern Mobile Marketing 4th DimensionCore Infrastrucutre. SQL, .NET based Packaged Apps Speed, Fast, Flexible, Cloud, Elastic.MS CRM or SFDC and Silverpop/CoreMotives or Exact Target.Azure Cloud. Retailer/B@B UI Web based portal storing all info back in our Cloud Infra.Consumer Preference Center Web UI to register, store preferences and request offers. Tied to their Rewards/Affinity UN/PW.Mobile UisAndroid and IphoneDownload. Heavy Investment.Key Benefits

Cloud - Cost Effective & ScalablePackaged Apps fast and flexible to deploy. Upload, Security, API, Cloud, DB, UI, Reporting, Workflow.Native Mobile Apps Best User Experience Push from Apps, SMS and Email. Mobile Proximity enabled.Modern Mobile Marketing 4th Dimension GPS for Proximity.

20Market analysis

2010$3.2 Billion2015$16.9 Billion

(Source: IDC-Market analysis firm) Global Smartphone SalesBig Data Technology & Services

2015248.6 million units CAGR 38.8%Global Tablet Sales

2010$2.8 Billion2015$10.3 Billion(Source: Pyramid Research) Location-Based Advertising Services(Source: Transparency Market Research)

20151,048.0 million units CAGR 36.3%(Source: Transparency Market Research)