FAMOUS FOOTWEAR GRAND OPENINGSGMR // 1.14.11

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© 2010 GMR

INTRODUCTIONS

Brad Bergren – Senior Vice President Client Management

Bill Blank – Senior Director Client Management

Jenny Strachota – Account Supervisor

Jaclyn Mullahy – Account Executive

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AGENDA

Value Proposition / Why GMR?

Project Understanding

Proposal Review

Q&A

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STRATEGIC OVERVIEW

How will we innovate and improve?

Add Program Innovations Which Will:

• Build on foundation of effective work

• Resonate best with target

• Be efficient for store management – allow them to size and sell

• Bring customers inside our stores rather than entertaining them outside the store

• Enable measureable success

• Point toward purchase – both at opening and beyond

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GMR VALUE PROPOSITION

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GMR VALUE PROPOSITION

Why continue the relationship with GMR for Famous Footwear Grand Openings?

We believe a collection of credentials differentiate and elevate our offering:

1. More than 30 years of cross-industry event management work

2. Marketing specialists – all under one roof

3. Cross pollination of Grand Opening best practices

4. Operational excellence

5. Thinking beyond the project

6. Leads and Loyalty programming

7. Research and insights, especially for Mom

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AGENCY OVERVIEW

Over 30 years of engagement marketing expertise

Founded in 1979

One of the most experienced and awarded marketing services firms in North America, and now global

Thousands of brand engagements that captivate consumer attention, influence opinion and change behavior

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CLIENT RELATIONSHIPSGMR works to build long term relationships with clients

1979

Miller Brewing Company

1994

Johnsonville Sausage

1997

Beam Global

1998

Mercedes-Benz USA

1999

Lowes

1999

Major League Baseball

1999

Microsoft Corp

2000

Visa International

2000

PepsiCo, Inc.

2001

Intel Corp

2002

Best Buy Co.

2002

Kimberly-Clark Corp

2003

Gillette / P&G

2003

Famous Footwear

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IN-HOUSE MARKETING SPECIALISTS

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GRAND OPENING CROSS-POLLINATION

Grand Opening Experience

More than 1000 grand opening events for our clients

Famous Footwear Grand Openings will continue to benefit from cross pollination

Grand Opening Best Practices

• Landlords Rule

• Store manager strapped

• Offers, especially at opening

• Immediate gratification

• Must fit into targets life

• Continue the transaction dialogue post event

• Bells and whistles drive limited incremental revenue

• Involve community

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OPERATIONAL EXCELLENCE

1000+ Grand Openings and 30 years of event production work are a credit to GMR’s operational excellence day in and day out

Trusted expect greatness in each event

Turn Key minimize client burden and worry for all details

Flawless plan for challenges then avoid them or correct immediately

Day Staff field marketing professionals, trained on the essentials

Scalable based on need, we can expand the team

Centralized command center creation for concurrent events

Financial managing expectations inside financial parameters, transparency

spend client dollars as if they were our own

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THINKING BEYOND THE PROJECT

In the GMR DNA to constantly think ‘what next’ for our Client

Always sensitive to objectives, vision, confidentiality and financials

2008: Girls Night Out, Mobile Tour, Jordan Pruitt Promotion, “Make Today Famous” campaign extension

2009: What’s Your Flavor mobile attraction, sampling partnership consultation and sell sheet

2010: Wellness mobile tour and event planning, Grand Opening Fashion Shows, NYC Grand Opening event concepts, location market activation, event in a box concept, Nissan partnership exploration, Harlem ideas

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RESEARCH & INSIGHTS

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WE KNOW MOM - OVERVIEW

Famous Footwear has told us:

Target: Mom

Age: 25-49

Attitudes: Connected to her community

Looks to her shopping experience as a way to find the right shoe

with both the fashion and the function, make her day and leave happy

Mom Insights Statistics, Mantras, Internal Mom Survey

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WE KNOW MOM - STATISTICS

25-49 age range includes three generational segments

Millennial Mom (25 to 28 years old)

Attitudes: Staying in touch, on-the-go , stylish, tools and gadgets keep her connected, professional

Gen X Mom (29 to 41 years old)

• Attitudes: self-coaching mantras ‘keep it simple” , take on what can be handled, minimize burdens

Boomer Mom (42 to 49 years old)

• Attitudes: time crunched, but a master of juggling family and work life , short and easy retail engagements

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WE KNOW MOM - MANTRAS

Mantra 1: “Today’s moms are savvy and discerning”

• Brands must communicate with her honestly and respectfully

• Creating brand evangelists out of consumers is a powerful marketing tool when marketing to

mom; it leverages her information network

Mantra 2: “Technology has changed how moms interact with friends and brands”

• Brands will need to adapt to and leverage new technology to reach women effectively

• Technology is also providing mom with more information and choices making it critical that a

brand be genuine, transparent and provide a real benefit

• Technology provides the opportunity to build and maintain relationship with mom, but brands will

have to treat the relationship with as much care as personal relationships

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WE KNOW MOM - MANTRAS

Mantra #3: “Moms define themselves differently today, ‘mom’ is only part

of who she is.”

• Brands must recognize the whole person, not just mom

• Marketing efforts can leverage this broader self view by providing both product value

and personal pleasure or reward, building both an emotional and rational connection

• While family remains the priority, mom has interests and activities outside of the

family which influence her brand choices (causes, conveniences, time-savings, etc.)

Research from: “What Moms Think and Do, Their Attitudes And Behavior As Consumers, Toward Work, Online And As Moms” by the Editors of EPM Communications; The Wonder Group / Dave Siegel; The New Super Consumer Mom and Kid / Coffey, Siegel, Livingston

 

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WE KNOW MOM - INTERNAL SURVEY

GMR utilizes a Resident Authority Database to mine insights from employees

Question 1: What would make you visit a Famous Footwear Grand Opening event if it was happening today?

Common Answers

“As a working mom, my time is limited”

“Great discounts / >30%”

“Giveaways / Prizing”

“Personalized invitation with reminders”

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WE KNOW MOM - INTERNAL SURVEY

Question 2: Is there anything additional you would want present at the store/onsite if you went today?

Common Answers

“Allow me to shop, don’t distract me”

“Staff available to help with sizing”

“Sizes available in the look I love for a great deal”

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WE KNOW MOM - INTERNAL SURVEY

Question 3: Is there anything you would not want present at the store event if you went today?

Common Answers

“Pushy sales people, I know what I want”

“Give me offers I can use now”

“A circus of experiences beyond shopping”

“Get me in and out quickly”

“Don’t distract my kids creating ‘mommy, mommy’ “

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WE KNOW MOM - INTERNAL SURVEY

Question 4: Are there any other things that could have an impact on your experience if you went today?

Common Answers

“Ample selection in both style and sizes”

“Need to know the date in advance, remind me”

“Don’t bombard me with hoopla, let me buy”

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WE KNOW WHAT MOM WANTS AT GRAND OPENING

Common themes inform our recommendation:

“Exclusive Offers / Real

Benefit”

“Invite Me, Remind Me”

“Simplify My Shopping

Experience”

“Help me manage my

kids”

“Sensitive to my errand

time”

“Fit into my schedule, not the opposite”

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PROJECT UNDERSTANDING

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PROJECT OBJECTIVES AND ASSIGNMENT

Project Objectives

• Drive traffic and sales, especially new-to-Famous customers, to grand opening events

• Create an event model which is has repeatable and proven method and measurement

• Create a turn-key experience that can be executed simultaneously in multiple markets

• Execute all grand opening events within one to two weeks of official store opening

Assignment

• Efficient and cost effective solution to grand opening needs

• Elevate the effectiveness, event length, and reach of our current activation programs

• Recommend enhancements including but not limited to partnerships and social media to both enhance customer experience and drive traffic

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AGENCY ASSUMPTIONS

1. Event model evolved from 2010 version to include added traffic ideas

2. Corporate, regional and local management would handle portions of social network and partnership work with consultation and guidance from GMR (details to follow)

3. Famous Footwear will assume operational ownership on several program areas including Media, PR, Creative Design & Production, School/Merchant outreach, Social media push, offer development.

4. Provide level of data analysis consistent with 2010 model

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AGENCY ASSUMPTIONS

5. Budget Development

• Based on information provided from Brown Shoe via email during initial response

• $15,000-$20,000 per event budget where (1/2 of total covers radio / media / PR)

• Yields $7,500 - $10,000 per location for activation

• 40 Grand Opening events

• $400,000 (or less) target budget

• Includes of extra event day and partner purchase of all prizing inside budget

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PROPOSAL REVIEW

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STRATEGIC APPROACHKeep current programming at core – day staff, Shoe Crazy, early bird, radio remote

Expand program by adding relevant and cost sensitive innovations designed to improve experience and drive traffic to store

Sensitive to loading additional responsibility on corporate, region, store – easily activated ideas

Offer consumers what they want – valuable offers and a reason to believe in the new Famous Footwear offering

Longer Event One Day to Two Days

CURRENT PROGRAM

Minimal Incremental

Expenses

Localized Merchant

Partnerships

Increased Consumer Prize Pool

Offer Distribution via Social

Media

Neighborhood Outreach

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APPROACH & METHODOLOGY

INShoe Crazy, Offers,

Staffing

ATHyper-LocalPartnerships

NEARSocial Media Awareness

and Couponing

AWAYNeighborhood

Outreach

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APPROACH & METHODOLOGY – “IN STORE”

Innovation to the In-Store Plan

Duration Migrate event from one day to two days (Saturday & Sunday)

Consider after hours preview on Friday

Shoe Crazy :30 Shoe Crazy shopping sprees – occur every hour on the hour (1-4)

Increase daily prizing to award more people more often

Offers Early Bird discount – 30% (or better) off entire purchase (10a -12p)

Bounce Back Coupons

Staff GMR-hired / trained staff onsite to manage event activations

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APPROACH & METHODOLOGY – “AT STORE”

GMR recommends a hyper-local partnership model at the mall / property level

Challenges of National Partnerships

• Finding mutual desire – both partners “need to need” each other

• Ensuring a balance of value between partners – the “win/win”

• Aligning priorities beyond target – geography, timing, message

• Translation to the local level – partner proximity to FF location

• Frequent dead ends make for a time consuming and costly endeavor

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APPROACH & METHODOLOGY – “AT STORE”

GMR recommends a hyper-local partnership model at the mall / property level

Why Hyper-Local?

• Neighbors will help neighbors with cyclical offers

• Leverages existing shopper patterns at the property

• Customizable and trade-based

• Relatively informal

• Can create the illusion of a national partnership

• Builds relationships with the immediate merchant community

• Examples: LaSalle Bank, T-Mobile

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APPROACH & METHODOLOGY – “AT STORE”

FF

Furniture

Friday’s

TJ Maxx

VerizonMajor

Grocery

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GMR recommends a hyper-local partnership model at the mall / property level

How Does It Work?

• GMR creates turn-key toolkit for local use – offer templates, suggestions, prospect listings of local merchants, instructions, reporting documents

• Regional / Local Managers network with peers at merchant partners on and near property to discuss informal, mutually-beneficial traffic driving offers (GMR can manage if needed)

• Famous will “bag stuff” offers from hyper-local merchants

• When successful, customers of all merchants become mutually-aware and incentivized

• Sky is the limit – ambitious managers can make this what they want

APPROACH & METHODOLOGY – “AT STORE”

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APPROACH & METHODOLOGY – “NEAR STORE”

How Does It Work?

• GMR consults on creation, Famous manages Facebook presence

• Blasts the community 2 weeks prior

• Encourage current friends to “like” on FF’s Facebook page to receive a $10 off “shareable” coupon

• The “initiator” shares the coupon with five friends (or more)

• If five friends redeem the coupon during the first 30 days a store is open, the “initiating “ friend receives a voucher (offer value TBD)

• GMR to connect with local mommy bloggers to participate and receive further incentive to show up at the event, blog about the experience and post pictures on social networks to drive additional traffic

• FF to promote local radio stations to drive traffic to Facebook site

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APPROACH & METHODOLOGY – “NEAR STORE”

Deal-of-the-day websites have become the rage

Interesting for FF grand openings, these sites allow offers to be administered on a local level

Groupon provides daily deals on cool local businesses

• GMR to develop and contract a deal for the Grand Opening event in the market where the store is opening

• Deals get passed along virally to friends/family or posted to social networks

• FF to tie in incentive to share on social networks; receive additional offers

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APPROACH & METHODOLOGY – “AWAY FROM STORE”Schools

• Stores connect with mom and tween target through local school partnerships

• Famous Footwear identifies 5 local schools

• GMR to develops simple toolkit with templates for store to customize and distribute

• Famous Footwear contacts local schools to introduce the program

• Each coupon used associated with that particular school during the GO event will get a $1 (or more) donated back from Famous Footwear following the event

• Seasonally adjustable concept will work around buying periods (BTS) and other existing fundraisers

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APPROACH & METHODOLOGY – “AWAY FROM STORE”Shoe Reuse Donation

• Partner with local cause to be onsite accepting shoe donations

• Donate shoes and receive discount valid during grand opening only

• Donation “ceremony” to local cause group during event

• To add additional buzz FF/PR agency to invite local TV news anchors, celebrities, well-known people around the city to donate shoes and participate in a shoe crazy shopping spree

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APPROACH & METHODOLOGY – TIMELINES

6 5 4 3 2 1

WEEKS OUT

IN

AT

NEAR

AWAY

STAFF SEARCH STAFF TRAINING

INITIAL STORE

CONTACT

DETAIL BRIEF WITH

STORE

STORE RECEIVES PARTNER TOOLKIT

PARTNER OFFERS FINAL

STORE NETWORKING WITH HYPER-LOCAL

PARTNERS

GROUPON NEGOTIATEDFACEBOOK

BLASTGROUPON AVAILABLE

TOOLKIT SCHOOL NETWORKING SCHOOL ANNOUNCE

SHOE DONATE PR

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APPROACH & METHODOLOGY – PROJECT TEAM

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APPROACH & METHODOLOGY – BWS RESOURCE EXPECTATIONS

Team Support

Planning insight

Goals and objectives insight

Direction / learning / results

Involve and engage

Program Support

Store communication support

Plan communication

Facebook management/fulfillment

Local planning leadership

Media/PR management

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APPROACH & METHODOLOGY – CRITICAL SUCCESS FACTORS

Front end involvement-help us understand good and great

Measures and metrics for success

Results involvement, allowing for course correction as needed

• Sales/coupons/tactics

Defined roles and responsibilities –Corporate/Field/Store/GMR

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BUDGET UNDERSTANDING

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BUDGET UNDERSTANDING

GMR Financial Model of Client Management

• Spend client dollars as if they were our own

• Hard good purchases pass thru to Clients

• Managing expectations inside financial parameters

• Transparency via monthly reporting

Project Management Team built by

monthly project need (% of hours)

level of staff required (by title)

quantity and type of support groups staff

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BUDGET UNDERSTANDING

Upper Limit Determination

• Based on information provided from Brown Shoe via email during initial response

• $15,000-$20,000 per event budget where (1/2 of total covers radio / media / PR)

• Yields $7,500 - $10,000 per location

• 40 Grand Opening events

• $400,000 (or less) target budget

• Inclusion of extra event day and partner purchase of all prizing inside budget

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BUDGET UNDERSTANDING

Additional Programming, Increased Budget

• In 2010 – 26 stores, 26 event days, during 8 months

• In 2011 – 40 stores, 80 event days, during 12 months

• 2010 GMR Budget / Store = $3,471

• 2011 GMR Budget / Store = $9,249

Budget additions driving the $5,508 per store increase

• Two days ($1860/store)

• Prizing now INSIDE GMR budget ($3337/store)

• Managing innovations to project ($311/store)

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BUDGET UNDERSTANDING

Opportunity to Scale Down

• Price can decrease to $5,331 per store if the following occur

• GMR removes involvement in retail permitting

• Movement of prizing budget back to Famous Footwear

• GMR Digital Consulting on Facebook & Groupon

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ESTIMATED PROJECT BUDGET

Program Element Estimated Cost Increase (+) / Decrease (-) from

2010 Budget

Assumption

Communications $932 $354 Usage has increased from 8 months to 12 months; Added 14 stores and increased events to 2 days

IT Services $10,100 $9,425 Includes general IT Services (- $75 from last year) and consultation fees for social media and / or Groupon ideas

Field / Crew Travel $500 ($750) Only used if a market is far from a main city and we have a diffi cult time securing staff.

Corporate Travel $3,820 $1,490 Includes (2) site checks – airfare, hotel, car rental, meals.

Staff Uniforms $2,633 $2,633 GMR to create uniforms for staff Field & Offi ce Supplies $2,208 $1,008 $50 Gift Cards for Event Managers (40 x $50 = $2,000);

Organizational supplies for training manuals – binders, tabs, CD / DVD

License & Permits $5,000 $5,000 Assume we may need to pay some city permits for any additional activation in parking lots or on streets near stores

Events Group Services $8,736 $8,736 Assume we may need the Events Group to secure city permits for additional activation in parking lots or on streets near stores

Risk Management $1,951 $1,051 Usage has increased from 8 months to 12 months; Added 14 stores and increased events to 2 days

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ESTIMATED PROJECT BUDGET (CONTINUED)

Program Element Estimated Cost Increase (+) / Decrease (-) from

2010 Budget

Assumption

Printed Materials / POS – Printing Only $415 ($84) Based on actual; Black & White copies for training manualsSweeps & Fulfillment $2,109 $976 Increase in Shoe Crazy events (40 stores x 2 event days x 4

shopping sprees per event = 320 events)Fulfillment Services $3,391 $152 Increase in Shoe Crazy events (40 stores x 2 event days x 4

shopping sprees per event = 320 events)Prizes $133,500 $133,500 As stated on the RFP call with all agencies, prizes are to be

included in overall budget. This includes a prize budget of $3,337.50 per store (40 stores) for 2 days to cover shoe crazy shopping spree prizing (8 total – assume $1,937.50 per store) and extra prizing (gift cards – assume $1,400) as mentioned in our plan.

Warehouse Shipping $2,095 $810 Added 28 shipments (14 stores x 2 shipments (to and from)).Warehouse Storage & Handling $305 $147 Added 28 shipments (14 stores x 2 shipments (to and from)).Administrative – Corporate $600 $525 Increase in number of training calls. To keep budgets down we

were using a FF conference code or direct dialing staff but it did not work out.

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ESTIMATED PROJECT BUDGET (CONTINUED)Program Element Estimated Cost Increase (+) /

Decrease (-) from 2010 Budget

Assumption

Creative Services $500 $500 Assume we will be purchasing uniforms for staff; includes 3 hours of purchasing time to locate uniform options and coordinate purchase with vendor

Temp Labor $57,680 + $40, 672 Increase is due to 2 day events, an increase of 14 stores and included training / recap time for EM; 1 Event Manager, 2 Assistants, 1 Back Up per market

Strategic Planning & Research Services $17,000 $4,250 Increase by 14 storesProgram Management $116,520 $69,344 Increase by $1,098.54 per store (2010 - $1,814.46 per store; 2011 -

$2,913 per store); Increased events to 2 days, planning and coordinating other elements (social media, local partnerships, additional in store activation elements), training 40 staff

2011 TOTALS $369,995 $279,739 $9,249.88 per store

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APPROACH & METHODOLOGY – MEASUREMENT

Historical Measurement

Store traffic

Sales by promotional period

Opportunity Measurement

Measure tactical tools

Attitudinal measurement

Additional comparative data

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AVERAGE HOURLY SALES BY PERIOD & PRE/DURING/POST EVENT DAYS

Average Total Sales for Period

Day Early Bird

Pre Event Days $442

Event Day $1,613

Post Event Days $574

Average Total Sales for Period

Day Shoe Crazy

Pre Event Days $657

Event Day $1,232

Post Event Days $757

Average Total Sales for Period

Day Post Event

Pre Event Days $373

Event Day $556

Post Event Days $401

10 11 12 13 14 15 16 17 18 19 20 21

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$279

$504 $542 $592$678 $687

$674 $475$499

$356

$371

$163

$1,331

$2,190

$1,320 $1,331

$1,069

$1,273 $1,254

$868

$696$585

$510

$123

$364

$578

$778 $750$857

$787

$635

$587 $498$433

$291 $194

Pre Event Days

Event Day

Post Event Days

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JULY/AUGUST 2010 CUSTOMER COUNTS – PRE, DURING & POST EVENTS

2923 2943 3117 3121 3124 3126 3127 3128 31290

200

400

600

800

1000

1200

1400

1600

1800

346.8

0

440

1286

204.8

749.130434782608652.8 693.6

1391.2

11461056

1652 1666

1533

1089

1288

1678

1531

336 357

528

1114

377

1155

819

484

0

Pre Event DaysEvent DayPost Event Days

Pre Event Days Event Day Post Event Days0

200400600800

1000120014001600

640

1404

574

All Stores

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QUESTIONS & ANSWERS

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2010 BUDGET DETAILProgram Element Estimated CostCommunications (Telephone / Cell Phones) $578 IT Services $675 Field / Crew Travel (Mileage for Temps if needed) $1,250 Corporate Travel (Placeholder if needed) $2,330 Field & Offi ce Supplies ($50 Gift Cards for staff) $1,200 Risk Management $900 Printed Materials / POS – Printing Only $499 Sweeps & Fulfillment $1,133 Fulfillment Services $3,239 Warehouse Shipping $1,285 Warehouse Storage & Handling $158 Administrative – Corporate (conference calls) $75 Temp Labor $17,008 Strategic Planning & Research Services $12,750 Program Management $47,176 2010 TOTAL $90,256 2010 TOTAL per STORE $3,471.38 per store