Manufacturer and Alternative Funding

1. Manufacturer and Alternative Funding Co-op & NTR

2. Co-op The Co-op Triangle Manufacturer Radio Retailer

3. Co-op Co-operative Advertising The manufacturer or supplier reimburses the retailer for the advertising (all or a portion) based on the retailer’s previous purchases Local retailer runs advertising featuring a manufacturer’s or supplier’s product or service

4. Co-op Benefits Stretches a retailer’s ad budget Lucrative source of new revenue Local retailers can tie into national manufacturer's programs Rarely CPP or ratings driven

5. Co-op Two Opportunities 1 You work with a single retailer to use accruals from one or more vendors to advertise one or more products/services Retail-Driven:

6. Co-op Two Opportunities 2 You work with one manufacturer to combine the accruals from several retailers to advertise selected products/services Manufacturer-Driven:

9. Co-op Info from RAB.com K-SWISS INC: 31248 Oak Crest Dr., Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494. Company Info – Who to contact

10. Co-op Info from RAB.com K-SWISS INC: 31248 Oak Crest Dr., Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494. 100% Allowance- What % of advertising

11. Co-op Info from RAB.com K-SWISS INC: 31248 Oak Crest Dr., Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494. 100%up to 1% of current year’s net shipments. Accrual Rate- Source of funding

12. Co-op Info from RAB.com K-SWISS INC: 31248 Oak Crest Dr., Westlake Village, CA 91361. Geronimo Moran, (818) 706-5494. 100%up to 1% of current year’s net shipments. Expires 12/31 Expiration Date- When funding ends

13. The Difference Between • NTR Co-op • Previous Purchases • Structured • Ad Based • Corporate Contact • Future Purchases • Not Structured • Promo Based • Local Contact • NTR = Revenue not from a traditional advertising budget.

14. NTR Spending (Billions) $342 $288 $276 $249 $165 $70 1995 2000 2005 Advertising Promotional Sources: Universal McCann 2006, Promo Magazine 2006

15. NTR Kinds of NTR Sports Marketing Recruitment Job Fairs Expos Sampling / Couponing Consumer Sweepstakes • Cause-Related • Event-Related • Internet • In-Store • Mass Merchandiser • Convenience • Supermarket

16. NTR Show Me The Money! • NTR campaigns are NOT funded from an ADVERTISING budget! NO! AD Budget

17. Sales Branding Multi-cultural Promotional Public Relations HR or others • NTR Show Me The Money! • NTR campaigns DO come from these budgets: YE$

18. NTR Elements • NTR campaigns can revolve around elements other than Radio • Direct Mail • Newspaper • Even • the blimp! • Promotional Gizmos

19. NTR Retail Driven NTR • Create a consumer promotion by starting with a retailer • Ask the manufacturer to fund the promotion • The retailer agrees to buy more product from the participating manufacturer • In exchange, the manufacturer agrees to pay for the promotion

20. NTR Manufacturer Driven NTR • Create a consumer promotion by starting with the manufacturer • The participating retailers are asked to buy more product from the manufacturer • In exchange, the manufacturer agrees to pay for the promotion

23. Manufacturer and Alternative Funding Co-op & NTR