Executive Summary

Value PropositionFor shoppers, ShopByBrands makes it easier, simpler and faster for them to find, compare and socialize all brand name products by bringing that access and capability together in one place on the web. It accommodates a variety of shopping styles and eliminates hopping from site to site, page clutter and vague content hindering the information gathering that precedes a purchase decision.

For advertisers, ShopByBrands aggregates shoppers who favor brand names and delivers a non-intrusive way to target them on the web in a unique and simple approach. It gives each brand its own web page with full control of its brand identity eliminating clutter,; bid pricing, brand hijacking, click fraud and distracting competitive and compromising content.

The Problem and SolutionShopByBrands will appeal to consumers, 90% of whom start shopping on the web on a search engine and become overwhelmed by the thousands of returned pages and the seemingly limitless shopping sites at their disposal. While ecommerce and online shopping should make purchase decisions easier, faster and less costly for consumers, it can in fact now take more time and energy than it should to review all the pages related to a particular product, pages that have multiplied over the past decade. Also finding coupons and special promotions and reading product reviews and blogs can require the same amount of time as just locating the product. All this content is valuable because not everyone shops in the same way. Some consumers like to comparative shop and get input from product forums. Others like to go straight to their favorite etailer to find a competitive price and then to the product blogs. Still others are in it for the pure social aspects. ShopByBrands is a new way to shop online that sorts all this information for users.

ShopByBrands will appeal to brand advertisers who have less control of their brand impressions on search engines, social networks, blogs and other third party sites. Advertisers are more challenged to find a simple, direct way to reach customers interested in their products without having to out maneuver keyword bidding, put up with the clutter that comes with it and targeting consumers when they’re not ready for their advertising messages. There’s no other place on the internet where brand name companies are represented equilaterally because their inclusion is not based on a marketing effort.

ShopByBrands is poised to deliver a remarkable new approach to online shopping. Web sites shoppers typically visit while shopping and the desired content will be easier to locate and keep organized; making a purchase and getting the best price will not be as lonely or time consuming a task and comparative and critical product information will be more in the control of the user and the brand advertiser at the same time. It’s a new and non-intrusive way for brands to present a complete and transparent picture to customers who are already looking for them on the web.

Product Description Business ModelThink of ShopByBrands as an exclusive encyclopedia or web directory where all brand names and their product categories are listed. Then add social networking, discussion forums, product blogs, some coupon sites, personal pages and present it all within a simpler advertising platform. That’s ShopByBrands, a site that brings the shopping experience all together for consumers in one space by

giving them control over organizing and customizing their own shopping preferences and styles. It’s the starting point for shopping online, which is. That’s why we also call it One-Start Shopping.

Specifically, ShopByBrands is….[1)] a Web portal and Vertical search engine that brings together the links to all shopping and product

content – brand, third-party and user generated -- in one place. The listing of virtually all brand names are consolidated in one database, which is the search engine’s source and not the entire internet, like Google or Yahoo, and is not dependent on a pre-arranged marketing agreement or registration. A consumer can be confident knowing that when coming to ShopByBrands.com they will be able to locate any popular brand company easily because therey will only beget one page per brand name and not have to read through pages of listings and ads. Users can also search for brands within product categories and types if they aren’t able to come up with their own brand names.

BRAND SEARCH RETURNED BRAND PAGE

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With ShopByBrands you can:

Search brand name web sites faster, easier Can’t recall brand names; search by products Brand fan? Join a Brand Network or Forum Create your own personal brands page Learn about more features Coming Soon

hartman

Find your Brand Name web site:Search by Brand

Search by Product

Click here to browse all Product Categories

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(drop down menu)

HARTMANNEst. 1877

Official Website:www.hartmann.com

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Welcome Mary Lou

Products

Travel Blog

Product Forum

Account Sign-inShop Collections

Customer ServiceRegister Product

Online Store

Find where Hartmann luggage is sold near you:

Store Locator…..you won’t want to miss!

Coupons/Specials

Carry-onAlternatives

Mobile Apps

(email address)

Newsletter sign-up

1)[2)] Personal Pages and Profiles that online shoppers can create with saved links to their favorite and most patronized brands, product comparisons and personal notes, preferred discussion groups and popular blogs.

PERSONAL PAGE PERSONAL NOTES & FILES

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Search Brand or Product

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My Favorite BrandsForums

Coupons

Store Locator

Product Blogs

Product Intros

Surveys

Newsletters

ShopFriends

Messaging

My Folders:luggageFurnitureFall fashion

My Groups:Food FansShoe FetishHome RenovatorsFall Fashion FindsHybrid WheelsMade in USA

Categories (drop down menu)

Local WeatherMon. Tues. Wed.

OctoberS M T W T F S

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Luggage folderForums

Coupons

Store Locator

Product Blogs

Product Intros

Surveys

Newsletters

ShopFriends

Messaging

My Folders:luggageFurnitureFall fashion

My Groups:Food FansShoe FetishHome RenovatorsFall Fashion FindsHybrid WheelsMade in USA

Notes:

Tumi

Notes:

Notes:

(Voice or Text)

Email a friend

Print page

Share

[3)] a Brand Community Forum and Network that is exclusive to brand lovers, reviewers or anyone

who likes to talk about their brand favorites and experiences and generate their own content and blogs on the subject. Space iscan be allocated for discussion groups for each brand and product category and brand representatives and advocates can be acknowledged within these. This increases the value of the site to its users.

[4)] an Advertising-supported website and database that offers brands an online advertising alternative with more control over their image on their pages and with no competition or page clutter. Each brand gets its own page that they can populate with the more popular sub-domain links to content deeper – and frequently more tedious difficult to find -- on the official company website. In this way ShopByBrands acts as a targeting filter for the brands by bringing their content consumers typically look for (i.e. product intros and promotions, coupons, store locators, customer service, etc.) to the attention of an engaged and interested audience more readily. Links to third party sites that relate to a particular brand such as, etailers, product blogs, brand forums, social networks, promos and coupons, product comparisons and configurators, sites consumers commonly use to complete their online shopping can also be included on the brand page. TWhile this brand page is beinghas not been designed yet, it is likely that it will be created as a template at least initially.so that This way content links common to most brands, such as coupons and store locator, can be found in the same place on each page making it easier for users. Advertisers will be afforded a certain level of creativity and individuality on their pages as well.

Business Model The business model is simple….a dollar a click. ShopByBrands earns a dollar each time a user clicks on a brand link on the Returned Brand page, the Product List page, a Personal page and Product Category Coupon and Store Locator pages.

Click through rates can vary between .05 all the way up to $150 and more with the higher rates being for more competitive keywords and more targeted reach and web sites. A recently reported average rate on Google was $3.30 a click. Actual click rates can average between .5 to 1.5% and more targeted searches can be 2 to 3 times greater. A shopper willingly coming to a web site they know is built around brand names and looking for those brand names presents a highly targeted search experience and with minor risk of click fraud. In light of all this, ShopByBrands’ fixed rate of $1 is reasonable.

A healthy click through rate is anticipated relative to other media sites. It’s less accurate to use typical click through rates with ShopByBrands as it’s model is closer to that of the responses on a search engine itself. It’s safe to say that virtually everytime someone uses a search engine, they click on something on the returned search page. That being the case, conservatively speaking, users should click virtually every time they use ShopByBrands as well. A healthy click through rate is anticipated relative to search and media sites. Offering fewer and easier to peruse choices on each ShopByBrands brand page will pretty much guarantee this but to be conservative a 4 out of 5 clickthrough rate is being used for our estimating purposes. e user clicks at least 4 out of 5 times or roughly 4M clickthroughs.

Marketing & Sales Strategy

There are 1.8B people who shop online worldwide with 149M in the US alone. Advertisers in the US are expected to spend $29.7B on online advertising this year. ShopByBrands is looking to capture $500M of that market.

The business can be launched from the ShopByBrands Facebook page as well as Facebook ads clicking through to the actual web site. Facebook is an integral part of the marketing plan. Facebook ads with an imbedded ShopByBrands search box will that allow users to type in a brand name can be purchaseds targeting women 3018 and older, of which there are over 752M on Facebook. These ad bids currently range between .90 to 1.50one to two dollars.

There are a number of ad affiliate and ad network opportunities to be pursued. For example, group buying (ex. Groupon) and coupon web sites can be linked to from the ShopByBrands brand and special feature pages. Other reciprocal linking possibilities will be proposed. Also, product category key words that would take a user to a ShopbByBrands sub-domain page (for ex. www.shopbybrands.com/refrigerator that links to a page with a list of all refrigerator brand names) can also be purchased but these will be very expensive, so search marketing can only be used in moderation at the start. Other drive-to-web initiatives will be considered as a buzz is built around the web site. A healthy click through rate is anticipated relative to search and media sites. Offering fewer and easier to peruse choices on each brand page will pretty much guarantee the user clicks at least 4 out of 5 times or roughly 4M clickthroughs.It is estimated this approach can yield an audience of 1.75M with another 2M users added each remaining quarter of 2012. Using our 4 out of 5 click rate, by second quarter 2012, there would be roughly 4M clickthroughs.

Consumer Traffic Build Plan:Phase 1 (present) 2 (4Q11) (1Q12) 3 (2Q12)Facebook 0 1.0M 1.5M 2.0MAffiliate Mktng. 0 .25M

.5M1.0M

Search 0 .25M .5M

1.0M

Undefined 0 .25M .5M

1.0M

Total 0 1.75M 3.0M

5.0M

A parallel effort will also be followed for signing on the brand name companies. The full web site won’t be formally launched until 2Q12 when the sales program will be introduced to the brands. Some brands will be experiencing traffic from shopbybrands.com before then but the site’s value to the advertiser will still be maturing. It is expected that revenue will start to generate in 3Q12. The goal is to have all initial 3000 brands on board and signing the click rate agreement by the end of 2012 averaging 500 a month between July and December. Some of this registration can be automated and it will still need to be determined how much of a sales force effort will have to be hired.

Advertiser Registration Plan, 2012: Total

Phase July August SeptemberSept.

OctoberOct.

Nov.ember

Dec. December

Popular brands 500 500 1000Popular industries

0 0 500 500 1000

Remainder 0 0 500 500 1000 Total 500 500 500 500 500 500 3000

CompetitionThere are no other web sites perse that already offer what ShopByBrands is preparing to launch. Certainly there are sites that provide some of its functionality. Any search engine will return a search that has the brand somewhere on the first page and in most cases sub-domain links to a minimal number of popular lower tier pages.

There are also numerous coupon sites offering duplicative discount codes. Group buying sites are popular as well and becoming repetitive. ShopByBrands doesn’t plan to compete with these but rather curate the listing of the most valuable ones within each product category.

There are no obvious web sites that help shoppers organize their approach to shopping via a customized page or the like. There is one credit card company that is trialing a feature that allows you to collect possible purchases and a “wishlist” within a file on their site. A user can also make the purchase on this site from supposedly any vendor and track one’s order. They also offer a handful of sites with special promotions. This isappears to be built around a commerce engine that promotes the company’s credit card, which would make sense for a credit card company to promote.

Finally there are again copious discussion boards and product blogs on every item conceivable. It’s a lengthy process to feel that the right ones have been found that most relate to a current purchase in progress and to that shopper’s personal tastes. ShopByBrands would be in a position to build similar forums on its web site indexed by product and brand as well as that would be helpful dependent on the product category. Here again ShopByBrands will curate the links to the most valuable discussions and blogs on its own pages and those of each brand page. Similarily, ShopByBrands would work with social networks and create fan has started a Facebook pages to tie in with the shopping buzz there.

There’s no other advertising model on the internet that duplicates the one being forged here. That’s mainly because there’s no other place on the web where brand name companies are represented equilaterally, not dependent on an ad buy.

Project Status and LaunchPhase 1: Bootstrap - Current

Rudimentary Phase 1 website and database with 3000 brand name companies, their product categories and URL’s providing basic brand name URL search capability

Patent Pending Updated pitch and business plan Creating a parallel ShopByBrands presence on Facebook Developing specs to upgrade and then build Phase 2 website with

templated brand pages with sub-domain and third-party links via use of web crawler and with an updated brand directory

Seeking partner and/or angel funding to release business model to consumers and advertisers

Phase Two: Angel Funding – 4Q11 Soft launch Phase 2 website Initiate awareness campaigns via PR, advertising, search, buzz and social

marketing Prepare specs for and build Phase 3 website that incorporates a more

robust search capability, discussion groups and personal pages and profiles

Develop sales, marketing, legal and accounting processes Seek VC funding

Phase Three: 1st Round VC Funding – 2Q12 Formal launch Phase 3 website Develop 5 year site migration plan Hire staff and set up operations formally Boost advertising and marketing efforts to increase awareness and

customer acquisition Kick-off brand company client registration and billing process

Before www.shopbybrands.com can be officially launched, a template must be designed for the brand pages so they can be populated with the relevant links with the use of a web crawler or bot. Also, the brand directory must be updated and more misspellings accommodated. With this the site will have enough functionality to entice users to try ShopByBrands and return. This intermediary step is necessary to eliminate the conundrum of having to build an audience of shoppers while simultaneously registering brands. After a steady audience has been acquired, brands will be approached to take charge of their own brand pages and to accept the pay per click model confident that healthy traffic is building.

In addition, because connecting socially has become such a critical play on the internet, ShopByBrands must encompass a social network feature and become a community and forum for all brand lovers and advocates. Users will be able to join brand and product groups and leave product reviews as well as propose brand names and links that may have been missed. This can be introduced by transforming elements of users’ personal pages into their profile pages where friends and brands can be added as is currently done on other social networks. (In addition, a ShopByBrands page is being created on Facebook to run in parallel with the web site.) In a later release a way to conference in friends while shopping online, in order to get their input and opinion, will also be added. All these enhancements will make the site sticky so that shoppers will return to shopbybrands.com more frequentlyregularly and stay longer.

Funding & Financial PlanShopByBrands is a unique non-disruptive internet marketing platform…highly scalable yet not capital intensive. It would be ideal to build the full Phase 3 web site next with the social networking and personal pages as described above. Around $150K,000 has been estimated for thisto upgrade to the Phase 3 web site as described above. With another $150K for a A minimal drive-to-web campaign would cost another $150,000. (Building the Phase 2 interim web site could cut these estimated costs in half.) SHowever, salary and overhead costs to move to thise next phase will range around $750K,000 bringing a total start-up capital to $1.275M. VC working capitalfunding will then be required

to cover all business operations and salaries beyond the official soft launch and until enough revenue can be collected to make the business viable on its own. The founder has invested her own time and and seed money in this venture to date but to take advantage of the current social marketing boom on the internet, the next phase should be escalated. Angel funding and/or a partnership that can provide the technical and start-up expertise is needed to propel shopbybrands.com to a launch later this year.

Expense Sheet:

SBB Expenses (2011-2012)

Expenses Phase 1 (Present) Phase 2 (4Q11) Phase3 (2Q12)

Website Develop. 75,000 150,000 500,000

Web Maintenance 0 50,000 250,000

IT & Hosting 1500 10,000 100,000

Marketing& PR 75,000 150,000 500,000

Salaries/Benef its 100,000 750,000 800,000

Market Develop. 0 50,000 150,000

Sales Commissions 0 0 ?1,000,000

Mgt./Sales Travel 0 10,000 150,000

General Expenses 0 100,000 250,000

Off ice Space 0 5,000 75,000

Off ice Equipment 0 0 25,000

Total 251,500 1,275,000 3,800,000

Meeting these milestones puts the beginning of revenue generation in3Q12. Profit is estimated for year three:

Three Year Financial Plan: .SBB Income (2011-2013)

2011 2012 2013Total Revenue 000 20,565,000Expenses 110,000 110,000 5,789,720Net Income -

110,000 14,775,280

$20k - ½ for the site & ½ for mktng2m users .05Ford for ex. $10/click

Exit Strategy:

ShopByBrands could reach full maturation on its own or be purchased by a major search or commerce website or any other large media site or advertiser that provides marketing opportunities to brand name companies.

ShopByBrands is poised to deliver a remarkable new approach to online shopping. Shopping web sites and their desired content will be easier to locate and keep organized; making a purchase and getting the best price will not be as lonely or time consuming and available, comparative and critical product information will be more in the control of the user and the brand advertiser at the same time. It’s a new and non-intrusive way for brands to present a complete and transparent picture to customers who are already looking for them on the web.

Founder:Mary Lou Floyd – Brand Marketing and Advertising Professional 201 867-2069 marylfloyd@aol.com

As an interactive advertising professional with experience at three large brand name companies, the Founder has created shopbybrands.com, a patent pending website to answer the needs of both consumers and advertisers on the internet. To pursue this opportunity further, please contact: Mary Lou Floyd, marylfloyd19@gmail.com, 201 867-2069.

ShopByBrands is poised to deliver a remarkable new approach to online shopping. Shopping web sites and their desired content will be easier to locate and keep organized; making a purchase and getting the best price will not be as lonely or time consuming and available, comparative and critical product information will be more in the control of the user and the brand advertiser at the same time. It’s a new and non-intrusive way for brands to present a complete and transparent picture to customers who are already looking for them on the web.

will appeal to consumers, 90% of whom start shopping on the web on a search engine and become overwhelmed by the thousands of returned pages and the seemingly limitless shopping sites at their disposal. While ecommerce and online shopping should make purchase decisions easier, faster and less costly for consumers, it can in fact now take more time and energy than it should to be able to review all the pages related to a particular product, pages that have multiplied over the past decade. Also finding product reviews and blogs and coupons and special promotions can require the same amount of time as locating the product. All this content is valuable because not everyone shops in the same way. Some consumers like to comparative shop and get input from product forums. Others like to go straight to their favorite etailer to find a competitive price and then to the product blogs. Still others are in it for the pure social aspects. As a result ShopByBrands is being redefined and reintroduced as a new way to shop online that sorts all this information for users. It’s called One-Start Shopping and it has all the features to fit any consumers’ style, all right on the same page.

ShopByBrands will appeal to brand advertisers who have less control of their brand impressions on search engines, social networks, blogs and other third party sites. Advertisers are more challenged to find a simple, direct way to reach customers interested in their products without having to out maneuver keyword bidding, put up with the clutter that comes with it and targeting consumers when they’re not ready for their advertising messages. There’s no other place on the internet where brand name companies are represented equilaterally because their inclusion is not based on a marketing effort. ShopByBrands is a pay-per-click model and gets paid by the advertiser or owner of the link a user has opted to click.