Strategy Presentation

© 2012 The Logical Step LLC

Presentation to:

LinkedIn Audience

CONFIDENTIAL 2

Agenda – “Results Generate Revenue – Revenue Breeds Productivity”

CONFIDENTIAL CONFIDENTIAL © 2011 The Logical Step, LLC

•  The Logical Step, LLC – Quadrant of Success •  TLS Process

•  “The Company we keep”…Clients/Strategic Partners •  TLS Generates Revenue •  Why DTC Marketing •  How to Measure Success •  Revenue Goals •  Financial Modeling/Statistical Analysis •  Thank you

CONFIDENTIAL 3

Quadrant of Success

CONFIDENTIAL “Unique combination of Direct Response, Intellectual

Property and Brand-Centric experience” CONFIDENTIAL

Marketing/Logistics and Channel/Component Partner Negotiation and Organization

Tactical Marketing and Competitive Landscape Detail and Development

Financial Modeling Strategy and Campaign Analysis

Offer Configuration(s) and CTA Design, Continuity and NBC’s (New Buying Customer(s) – “WHW”- Development and Implementation

CONFIDENTIAL 4

The Logical Step™ Process

•  Financial Modeling

•  Conceptual Development

•  Production Evaluation

•  Post Production Due Diligence

•  Merchant Processing

•  Inbound Tele-service Evaluation and Contract Review/Negotiation

•  Operations, Fulfillment and Distribution

•  Multi-Channel Distribution

•  Evaluation and On-going Review

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Develop Delivery

Administration Knowledge

Structure

“Process Through Experience ” CONFIDENTIAL

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The Logical Step - Client and Strategic Partners

•  Brand/Product/Service Marketers •  Comprehensive review of all goals and objectives •  Evaluate all facets of Direct to Customer

engagement from conceptual development to product and/or service distribution

•  Generate results based on complete understanding of market position, demographic audience, and product value proposition

•  Direct Response Experts •  DR professionals who require the ability to offset

or isolate specific product while capitalizing on current product performance

•  Provide expert ability to “select” component partners based on calculated experience and proven metrics

•  Consultation of value-based selling •  Ancillary product sales performance (i.e. catalog,

targeted Direct Marketing, lifestyle marketing, affiliate sell through, etc.

•  Performance Partners •  Collaborative partners that add value in every step

of the DR/DTC/DTR process

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BRIEF LISTING OF CLIENT AND STRATEGIC PARTNERS

“ We are judged by the company we keep”

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CONFIDENTIAL 6

“The Logical Step™ generates revenue and delivers results!”

CONFIDENTIAL

The TLS Management team exudes over 20 years of comprehensive client success: •  We are passionate about direct to consumer marketing!

WHY? We are expert at developing programs that entice and resonate with consumers – and detail aspects of revenue generating

programs that truly understand “what makes the target audience tick” •  We Are Salespeople and We Are All About The Bottom Line. •  We’ve proven the Direct to Consumer model - as it relates to “direct to

consumer” marketing - you can feel comfortable navigating all elements of a successful marketing campaign with TLS as a vital “division” of your firm.

•  Having worked with every successful – and appropriate - component partner

in the business you will be working with the most proficient - at significant savings!

•  The emphasis is to grow business, enhance revenue, and increase

profitability. Strong content, effective Call to Action, astute attention to results – this IS The Logical Step!

“The Logical Step provides ‘before, during, and after’ experts that deliver outstanding results within budget!” CONFIDENTIAL

CONFIDENTIAL 7 CONFIDENTIAL

“ ‘Best Practice Modeling’ working in conjunction with proven product marketing technique” CONFIDENTIAL

Why Direct To Consumer (DTC) Marketing

With targeted direct to consumer marketing that is personalized you will do more than build a brand you will build customers that are loyal to your solution: •  DTC marketing will not only increase market share, but it is self liquidating and self

sustaining.

•  DTC will educate the consumer on every aspect of your product and services in a targeted and controlled manner.

•  DTC will establish an initial interest to try your products by personalizing your message whenever possible to create that initial bond. The goal should to

create a “tipping” effect that elicits a “direct response” from the customer.

•  In all cases, an integrated program execution – with television (potentially) being core to the structure of the program – will not only drive revenue, but build on the loyalty and attention that your customers pay to your products. A referral program that rewards the customer can not only have a dramatic effect on your bottom line results, but increase customer satisfaction levels significantly.

CONFIDENTIAL 8 CONFIDENTIAL “ ‘MER + GRP/R/F + AOV + CPO + CPC + LVC = $$$” CONFIDENTIAL

How to Measure Your Success We utilize these and a series of detailed reports to illustrate growth, cross pollination of customer data, trending, as well as how each piece of media has performed based on the metrics we set in place during the strategy phase of each program segment. A multi-channel strategy will yield significant results. The process by which programs are “measured” dictates a specific process and performance calculation. These key metrics include:

• GRP/R/F – Gross Rating Point(s)/Reach/Frequency • MER – Media Efficiency Ratio • AOV- Average Order Value • CPO- Cost Per Order • CPC – Cost Per Call • LVC – Lifetime Value of Customer

CONFIDENTIAL 9 CONFIDENTIAL “ ‘Market Penetration combined with tactical disciplines” CONFIDENTIAL

Revenue Goals

The most effective method to review Revenue Goals at this juncture is a comprehensive process, while analyzing all media based on economics, target, market penetration, and sales/revenue lift. These are assumptions based on historical data – detailed financials will be Provided (presented during Phase I of any marketing initiative) •  In today's Direct to Consumer marketplace the target is to make “two dollars for

every dollar spent” on media – (i.e. 2:0 MER). •  The balance of revenue is derived from the “stick rate” (LVC) that will be essential in

gaining a minimum 10% growth per region on a national and/or international footprint.

•  Historical data dictates cash flow and breakeven metrics will not only drive revenue and expansion, but will enhance brand equity and market penetration. This will contribute to all test growth, campaign optimization, product price point and margin leverage, etc.

CONFIDENTIAL 10

Financial Modeling and Statistical Analysis

•  Brand-Centric Modeling •  Consistent awareness of all brand initiatives,

protection of brand equity, and growth of brand strategy

•  Attention to co-brand opportunities and cross selling tactics

•  Leverage brand awareness through innovative, cost effective business strategy

•  Best Practice Strategy •  Strict due diligence in relation to business

partners and component vendors •  Best of Breed selection process •  Formula driven review criteria •  Detailed analysis and fee negotiation for

maximum efficiencies and minimum cost

•  Program Performance Review •  Gantt and PERT Chart building and consistent

adjustment and evaluation

•  Measurement criteria dictated by performance metrics and historical data and experience

•  Detailed review with client partner to insure all SLA’s and objectives are achieved

CONFIDENTIAL

Proforma Development

Gantt Chart Progression

“ ‘From Proforma to Product Distribution’ – Calculated approach with a healthy dose of experience” CONFIDENTIAL

CONFIDENTIAL 11 CONFIDENTIAL

“ The Logical Step in Direct to Consumer Marketing = The Advantage!” CONFIDENTIAL

Thank You

To engage The Logical Step, LLC - please contact:

Steven J. Edelstein CEO (v): 203.314.6490 (e): sjedelstein@thelogicalstep.net (e): sjedelstein@gmail.com