SUMMER INTERNSHIP PROJECTPresented By: Shannon Greenbaum5 July 2016

Identify a digital marketing strategy for owned channels (email, social, text, mobile app) for the Licensed business that will keep us competitive, increase engagement and drive traffic and sales in the hopes of reaching our $100M goal this year.

PROJECT OVERVIEW

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CURRENT STRATEGY

Licensed Web Only

Q1 This YearVisits % to TTL Orders Gross Sales % to TTL *Conversion CVR Index

Sales Var to Total Site [bps]

CSE 168,219 7.5% 5,946 $256,921 5.2% 3.53% 0.78 257 Direct 645,444 28.8% 26,076 $1,274,837 25.9% 4.04% 0.89 (213) Email 166,214 7.4% 12,742 $592,996 12.0% 7.67% 1.69 (582) Natural Search 704,062 31.4% 32,384 $1,582,914 32.1% 4.60% 1.01 650 Other Channels 308,164 13.7% 10,764 $517,425 10.5% 3.49% 0.77 121 Paid Search 249,539 11.1% 13,917 $698,832 14.2% 5.58% 1.23 (234)

TOTAL 2,241,642 100% 101,829 $4,923,926 100% 4.54% 1.00 -

• Email: 1 weekly licensed emails, frequently targeted, hot market focus, provides the biggest opportunity for growth within the Licensed business

• Mobile App/SMS: 1.4M app users with push notifications turned on, still working with wrapped site and no mobile texting; team working through timeline of updates, no current licensed benefits

• Social: Relevant posts typically within hot market, improving customer loyalty, licensed one of best campaigns (#squadcolors)

*Reference Appendix A for more information on current licensed trend

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LICENSED SALES BY LEAGUE

Other:SPECIAL EVENTS MENS LICENSED KIDS LICENSEDWOMENS WORLD CUPHARDGOODS/OTHER LICENSEDMLSHIGH SCHOOLLICENSED COMMODITIESCLUB SOCCERINT. SOCCEROLYMPICS

*Reference Appendix A for more licensed statistics

NFL; 30%

NCAA; 31%

MLB; 18%

NHL; 11%

NBA; 6%

Other; 4%

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COMPETITOR ANALYSIS

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COMPETITOR ANALYSISData collected by:• Daily visits to competitor websites to record sales/promotions/advertising

techniques• Signing up for competitor emails and recording frequency of messages

received • Highlight and screenshot useful information

• Researching social media techniques as well as investigating app platforms

Zeta Analysis

• Analysis done on read rate, peak sending and themes• Personalization

Frequency Audience Promotion

*Reference Appendix B for a complete list of competitors

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FANATICS

Email• Partnerships with major leagues: NFL, MLB, NBA,

UFC, MLS, PGA, NASCAR• Frequent and relevant emails sent out DAILY• Customer outreach (Celebrate Fan sales)

App• Fast and easy to use app

• Push notifications• Native experience

Social media presence• Big three: Twitter, Facebook, Instagram

• 1:4 tweet/follower ratio• Double Instagram Handle

• Fan inspired• Product/event inspired

• Snapchat, Pinterest, Google Plus

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FANATICS

Personalized based on past engagement: “picks just for

you”

Personalized based on your “my favs” settings

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MAJOR LEAGUESNHL, NBA, MLB, NFL, MLS

Emails• Range from frequently changing

promotions to no promotions• Attempt to specifically focus on

women in emails• Nike promotion on apparel during

MAP break • NFL was most effective with

customer outreach as well as emailsApps• All have effective apps but majority

are more focused on news and score updates

Social Media• Mainly covers players, scores and

news instead of publicizing promotions

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MAJOR LEAGUESNFL

Use of personalized settings to send out

relevant sport merchandise updates

*Reference Appendix C,D and E for a more in-depth competitive analysis

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CUSTOMER INSIGHT

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Understanding the Licensed

Consumer

Survey Market Basket Analysis

Penetration Analysis

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CUSTOMER SURVEY

First survey run related to licensed customer due to lack of information about a typical licensed consumer

• Audience: 200k DSG Scorecard members (100k licensed purchases, 100k non-purchasers)

• 14 Questions • Multiple select/open ended

• Sent out: June 14, 2016• Data Received: June 21, 2016• Total Respondents: 1,329

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CONSUMER SURVEYKey Findings

General• 75% of consumers surveyed had purchased license material in the last 12 months• 53% prefer to shop exclusively in-storeGender• Both men and women preferred licensed apparel to the alternative non-licensed option• Both men and women preferred to receive emails as their primary from of communication

with DICK’s• Women were more likely to buy merchandise for others rather than themselves• Overall, women were 25% less likely to purchase licensed apparel Age• People from the ages of 18-54 were more likely to purchase licensed material• 18-24 year olds are far more likely to buy merchandise for themselves• 24-34 are more likely to buy merchandise for another adult

*Reference Appendix F and G for more information

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SURVEY RESULTS:COMPETITOR INFORMATION

Department stores and Big Box stores were a surprising 44% and 43%

Who Have You Purchased Licensed Products from in the Last 12 Months?

22.%

9%

21%

4%

3%

6%

15%

44%

43%21%

89%

18%

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MARKET BASKET ANALYSIS

• Table depicts ONLY top 3 categories that fell into the top percentages of lift AND attachment rates

• Typical licensed customer is 2.16 times more likely to purchase boys athletic apparel

Blended Department - Top 40% Attached Customers & Top 30% lift

Dept Name Average of Attach Customer Cnt

Average of Attach Basket Cnt

Sum of Attach Sls $ Lift ↓ Sum of attached $

per custSum of attached $

per trnx

BOYS ATHLETIC APPAREL 505,853 1,108,761 $52,959,338 2.16 $104.69 $47.76

MENS GOLF APPAREL 292,466 437,805 $26,254,410 2.01 $89.77 $59.97

WOMENS OUTERWEAR 254,586 349,573 $18,805,288 1.99 $73.87 $53.80

*Reference Appendix H for more information

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• With a lift of 1.90, basketball is the team sport that most correlates with the purchase of licensed products

• Opportunity for future promotions/licensed/basketball marketing campaigns

MARKET BASKET ANALYSIS

Blended Class - Top 5% Attached customers & Top 20% lift

Dept - SubDept - Class Average of Attach Customer Cnt

Average of Attach Basket Cnt

Sum of Attach Sls $ Lift ↓ Sum of $ Attached

Per CustSum of Attached $

Per Trnx

BOYS ATHLETIC APPAREL- UNDER ARMOUR- BASKETBALL 50,224 60,725 $1,922,664 3.03 $38.28 $31.66

YOUTH GOLF APPAREL- UNDER ARMOUR- UNDER ARMOUR BOYS 49,892 65,185 $3,083,993 2.96 $61.81 $47.31

BOYS ATHLETIC APPAREL- NIKE- FLEECE 52,822 62,360 $2,453,485 2.88 $46.45 $39.34

BOYS ATHLETIC APPAREL- UNDER ARMOUR- COLD COMPRESSION 41,441 47,445 $2,132,508 2.83 $51.46 $44.95

BOYS ATHLETIC APPAREL- NIKE- BASKETBALL 148,283 241,139 $10,158,882 2.81 $68.51 $42.13

*Reference Appendix I and J for more information

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SCORECARD PENETRATION ANALYSIS

Total Online Scorecard Penetration Rate: 48%Total Online Scorecard Penetration Rate for Licensed: 42%

Total Chain Brick and Mortar Penetration Rate: 81%Total Licensed Brick and Mortar Penetration Rate: 71%

• What does this mean?• Opportunity to increase penetration through

specific scorecard/licensed deals

*Reference Appendix K for more information

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LICENSED DIGITAL CHANNELS: SWOT ANALYSIS

SWOT ANALYSIS: EMAIL

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Strengths:-Shift from bi-weekly to weekly email-Smaller league visibility (i.e. COPA)-Hot market updates

Weaknesses:- Eye catching, rich content current unavailable- Inability to react to sports updates- Lack of licensed promotions

Opportunities:- Partnership with company for

creative/interactive email designs- Partnership with ESPN- Personally relate to consumers (particularly females) with more frequent, targeted emails

Threats:- Insufficient resources to keep up with competitors who

have adapted to react to sports updates- Competitor partnerships with key leagues

SWOT ANALYSIS: SOCIAL

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Strengths:- Fast updates- Fan interaction/one of more engaging campaigns

Weaknesses:- Lack of creative for independent licensed channel - Legal limitations with players and teams - Lack of budget for partnerships with key players and teams

Opportunities:- Leveraging ESPN partnership to get content- Use of snapchat at sporting events- Dedicated creative resources - Increase engagement through separate handle

Threats:- Fanatics partnerships with teams/athletes

SWOT ANALYSIS: MOBILE

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Opportunities:- Process for deep linking in My Offer- Licensed specific scorecard points- Developing a Native Shop Experience- New text provider - Ability to search specific store for product- Push notifications in-store

Threats:- Not able to compare with competitive apps

(Target, Fanatics, Walmart)- Resources (i.e. time) - No current iPad app

Strengths: Weaknesses:- Shopping experience currently wrapped

(not native)- Not able to search specific store for product

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LICENSED DIGITAL STRATEGY RECOMMENDATIONS

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RECOMMENDATIONSEMAIL

1. Increased frequency of licensed emails (need based)2. Develop more personalized emails

• Versioning out • Targeting

3. Increased effort to target the licensed female customer• Gender specific research• Increase use of females in licensed advertising

campaigns4. Leverage ESPN partnership

• Develop ranking system for top 5 events

5. Focus on licensed promotions pairing low selling item with high selling market basket items

6. Licensed acquisition campaign• Increase promotions encouraging more licensed

customers to sign up for scorecard

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RECOMMENDATIONSSOCIAL MEDIA

1. Dedicate resources• Jerseys on models• Leveraging existing partnerships

• ESPN• Steelers, Pirates

3. Separate licensed “fan" channel• Creative coming from fan base• Similar to Fanatics double handle

4. Use of snapchat• Snapchatting fans/in-store reactions

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RECOMMENDATIONSMOBILE/SMS

1. Imperative to switch to native experience in order to keep up with competitors

2. Opportunity for licensed promotions related to Scorecard points

3. New SMS provider will be key to improvement and development of text 4. Develop timeline for all app updates that can be shared with all involved parties5. Continue to improve sections within App to create a more enjoyable user interface experience

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SPECIAL THANKS TO…

Kari DeGori Erin Mcintyre Greg Smith Matt Utz Matt Langton

And everyone else who helped me along the way…

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QUESTIONS?

APPENDIX A

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YTD total Rtl Sales $ YTD total eComm Dmnd Rtl Sales $

Licensed has accounted for $2.8M of the business thus far this year. Last year, at this point, it was only $2.6M.

TY YTD: $ 61,320,791

LY YTD: $50,297,594

TY YTD: $10,287,370

LY YTD: $8,269,852

APPENDIX B

Main licensed competitor due to frequency/relevancy of emails as well as major partnerships

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APPENDIX C

ACADEMY

Email• Weekly overarching emails similar to DICK’s tab support• Infrequent attention to hot market/current eventsWeb• Unchanging deals App• No App (only coupon apps)Social Media• Limited licensed posts

• Instagram: large and small licensed events• Twitter: Staying up to date on current events/fan

events• NO snapchat

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APPENDIX D FANSEDGE

Email• Constant and varied site/email

promotions with huge amount of attention on major leagues

• Infrequent emailsApp• No AppSocial Media• Instagram: promoting new

products/trends• Twitter: Sporadic posting about

new trends/seasonal• No Snapchat

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APPENDIX E

TARGET/MACY’S

Email• No specific email marketing strategy for

license material• Reliant on site wide discounts and low prices

to attract customer base• Danger coming from in-store cheap

licensed/unlicensed apparel salesApps• Well developed, popular apps with

embedded discounts and native experiences

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APPENDIX F

74%

26%

Have you bought a licensed product within the last 12 months from any

retailer?

Yes No

54%

13%

34%

Did You Buy Merchandise at a DICK's Sporting Goods Store or

Online

In Store Online Both

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APPENDIX G

32%

37%

31%

Purchasing Power: Females

SelfAdultYouth

NFL NCAA MLB NHL NBA0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2015 Men2015 Women

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APPENDIX HBlended Department - Top 40% Attached Customers & Top 30% lift

Dept Name Average of Attach Customer Cnt

Average of Attach Basket Cnt Sum of Attach Sls $ Lift ↓ Sum of attached $

per custSum of attached $

per trnx

BOYS ATHLETIC APPAREL 505,853 1,108,761 $52,959,338 2.16 $104.69 $47.76

MENS GOLF APPAREL 292,466 437,805 $26,254,410 2.01 $89.77 $59.97

WOMENS OUTERWEAR 254,586 349,573 $18,805,288 1.99 $73.87 $53.80

KIDS ATHLETIC FOOTWEAR 277,140 491,650 $17,696,048 1.99 $63.85 $35.99

ELECTRONICS 295,386 470,472 $33,086,555 1.99 $112.01 $70.33

MENS OUTERWEAR 168,636 206,189 $20,855,560 1.91 $123.67 $101.15

BASKETBALL 295,578 367,141 $17,847,701 1.90 $60.38 $48.61

FOOTBALL 224,546 290,049 $29,452,244 1.88 $131.16 $101.54

BAGS 464,943 655,843 $14,785,114 1.88 $31.80 $22.54

GIRLS ATHLETIC APPAREL 186,588 241,589 $25,566,802 1.86 $137.02 $105.83

OUTERWEAR ACCESSORIES 305,898 398,566 $16,856,435 1.85 $55.10 $42.29

SPORT GAMES 276,215 456,458 $18,723,216 1.85 $67.78 $41.02

Grand Total 295,653 456,175 $292,888,712 1.94 $82.55 $53.50

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APPENDIX IBlended SubDept - Top 20% Attached Customers & Top 30% lift

Dept - Sub Dept Average of Attach Customer Cnt

Average of Attach Basket Cnt

Sum of Attach Sls $ Lift ↓ Sum of attached $

per custSum of attached $

per trnx

BOYS ATHLETIC APPAREL- NIKE 253,854 456,322 $19,640,317 2.58 $77.37 $43.04BOYS ATHLETIC APPAREL- UNDER ARMOUR 319,851 603,139 $27,357,854 2.42 $85.53 $45.36FOOTBALL- FOOTBALLS 108,214 123,149 $3,311,507 2.27 $30.60 $26.89MENS GOLF APPAREL- NIKE 100,794 130,218 $8,860,869 2.23 $87.91 $68.05MENS GOLF APPAREL- UNDER ARMOUR 107,691 146,624 $11,063,383 2.23 $102.73 $75.45GIRLS ATHLETIC APPAREL- UNDER ARMOUR 144,407 217,827 $7,497,510 2.20 $51.92 $34.42GIRLS ATHLETIC APPAREL- NIKE 139,158 204,037 $6,396,823 2.19 $45.97 $31.35MENS OUTDOOR APPAREL- MENS TOPS 123,483 157,482 $7,041,857 2.17 $57.03 $44.72BOYS ATHLETIC APPAREL- DSG 160,630 207,946 $3,898,869 2.17 $24.27 $18.75BASKETBALL- BASKETBALLS 181,754 220,851 $6,686,688 2.12 $36.79 $30.28SPORT GAMES- INDOOR GAMES 154,292 185,861 $5,925,626 2.11 $38.41 $31.88GIRLS ATHLETIC APPAREL- DSG 118,690 160,165 $3,532,878 2.07 $29.77 $22.06SOCKS- SEASONAL 251,897 331,198 $5,124,640 2.06 $20.34 $15.47CLEATS- SLIDES/SANDALS 269,525 337,123 $11,890,853 2.05 $44.12 $35.27BASEBALL- BATTING GLOVES 204,626 259,568 $7,088,500 2.04 $34.64 $27.31OUTERWEAR ACCESSORIES- WOMENS OUTERWEAR ACCESS 121,165 141,465 $5,670,341 2.03 $46.80 $40.08KIDS ATHLETIC FOOTWEAR- KIDS ATHLETIC FOOTWEAR 292,466 437,804 $26,254,395 2.01 $89.77 $59.97TOTAL 179,559 254,163 $167,242,912 2.17 $54.79 $38.71

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APPENDIX JBlended Class - Top 5% Attached customers & Top 20% lift

Dept - SubDept - Class Average of Attach Customer Cnt

Average of Attach Basket Cnt

Sum of Attach Sls $ Lift ↓ Sum of $

Attached Per CustSum of Attached

$ Per Trnx

BOYS ATHLETIC APPAREL- UNDER ARMOUR- BASKETBALL 50,224 60,725 $1,922,664 3.03 $38.28 $31.66YOUTH GOLF APPAREL- UNDER ARMOUR- UNDER ARMOUR BOYS 49,892 65,185 $3,083,993 2.96 $61.81 $47.31BOYS ATHLETIC APPAREL- NIKE- FLEECE 52,822 62,360 $2,453,485 2.88 $46.45 $39.34BOYS ATHLETIC APPAREL- UNDER ARMOUR- COLD COMPRESSION 41,441 47,445 $2,132,508 2.83 $51.46 $44.95BOYS ATHLETIC APPAREL- NIKE- BASKETBALL 148,283 241,139 $10,158,882 2.81 $68.51 $42.13BOYS ATHLETIC APPAREL- NIKE- TRAINING 124,167 169,555 $4,341,804 2.78 $34.97 $25.61BOYS ATHLETIC APPAREL- NIKE- CORE COMPRESSION 48,096 58,809 $1,738,472 2.75 $36.15 $29.56BOYS ATHLETIC APPAREL- UNDER ARMOUR- FLEECE 93,351 118,697 $5,846,794 2.74 $62.63 $49.26HOCKEY- STREET HOCKEY- STREET HOCKEY ACCESSORIES 37,786 46,951 $766,460 2.72 $20.28 $16.32BOYS ATHLETIC APPAREL- UNDER ARMOUR- TRAINING 209,155 345,092 $12,548,467 2.62 $60.00 $36.36GENERAL ACCESSORIES- SUNGLASSES- BASEBALL SUNGLASSES 33,368 36,908 $1,062,992 2.58 $31.86 $28.80BOYS ATHLETIC APPAREL- UNDER ARMOUR- CORE COMPRESSION 88,566 111,385 $3,256,320 2.57 $36.77 $29.23BOYS ATHLETIC APPAREL- UNDER ARMOUR- ACCESSORIES 36,239 40,297 $860,060 2.52 $23.73 $21.34SPORT GAMES- INDOOR GAMES- MINI GAMES 98,155 110,319 $1,913,020 2.51 $19.49 $17.34BAGS- ACCESSORIES- LUNCH BAGS 57,990 62,664 $1,183,756 2.51 $20.41 $18.89CLEATS- SLIDES/SANDALS- KIDS 56,182 62,164 $1,490,030 2.48 $26.52 $23.97TOTAL 76,607 102,481 $54,759,705 2.71 $44.68 $33.40

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APPENDIX KSales Score Card Penetration - Licensed Online

Ecomm Analysis - Loyalty Sls when Customer Matches Name and Address with an Existing Scorecard Account

YearEcomm

Licensed Loyalty Sales

Ecomm Licensed

Total Sales

Ecomm Licensed Loyalty

Penetration

Ecomm Total

Loyalty Penetration

2013 10,752,541 25,478,400 42% 48%

2014 16,091,208 42,240,068 38% 44%

2015 22,076,016 52,466,037 42% 48%

2016 1,570,216 4,077,814 39% 47%