What It Is. How It Works. Why It Matters.

1. Presented to: ______ By: Attack! Marketing What It Is. How It Works. Why It Matters.

2. What’s Presence Marketing?

3. It’s not just another invented subdomain of marketing jargonese. Many marketers are already executing aspects of Presence, just not in a holistic and integrated manner.

4. We mean to demonstrate how one-to-one, consumer-focused engagements can be integrated into a smarter, more platformed and strategic approach that we call Presence Marketing. In doing that, we’re able to… Define that approach Define the attributes that make it succeed Use those attributes to create a template for success Drive results via Presence Marketing

5. So…is thisPresence Marketing?

6. Are these?

7. What about these guys?

8. This?

9. Or… this?

10. The fact is, all of these can be elements of a Presence campaign. But none in and of itself isPresence Marketing. Let’s set a definition…and create filters that help define Presence.

11. Presence is about exactly what the name says: Staying present in consumer’s lives and awareness, but in ways that promote dialogue, interaction and trust. A good way to define it? Use its overall objective…

12. Creating consumer relevance through consistent and engaging personal brand encounters.

13. To achieve that goal, a Presence program needs to possess FOUR ESSENTIAL ATTRIBUTES. Remove any of them and it’s no longer effective as Presence.

14. ATTRIBUTE: HYPERLOCAL IMMERSION A true Presence program needs to have an in-depth, lived-in knowledge of the communities and consumers where it operates. • Drives authenticity and credibility with its audience • Enables better targeting and engagement through localized business intelligence • Results in greater proactivity, adaptability to local circumstances

15. ATTRIBUTE: CONSTANCY & CONSISTENCY The brand needs to be a regular Presence in market, and consistent in its actions. • Constant in timing and deployment • Consistent in behavior and engagement • This turns initial consumer surprise into expectation • Drives familiarity and acceptance

16. ATTRIBUTE: ADAPTABILITY A Presence program is inherently “on the ground” and needs to be able to quickly adapt to changing circumstances. • Allows workarounds for weather, acts of God, other unexpected developments • Lets a marketer capitalize on – or even create – opportunities • Allows adjustment to constantly-shifting local trends, demographics and consumer interests, thanks to knowledge of the local market

17. ATTRIBUTE: PEOPLE 97% • of consumers say staff’s ability to answer specific product questions is crucial*. • *Source: http://www.marketing.ie/jan05/article4.htm The most important attribute: putting the right people in place allows a Presence program to enact the other attributes. True “walking brand” personnel who represent the brand and its consumers Highly trained but honestly evangelical and authentic Enabling the invaluable one-to-one encounter Ideally local, of the community itself

18. PRESENCE IN PRACTICE • US Army: Strength in Action Tour • To support the US Army’s Strength in Action program, staffing up • with the right PEOPLE and properly training them were the first • of many crucial concerns. Its Presence attributes? • HYPERLOCAL IMMERSION: The Tour leveraged locally-based field teams as well as local Army recruiters and other partners. • CONSISTENCY: Strength in Action is a regular annual visitor to locations all across the country. • ADAPTABILITY: Logistically complex but designed to adapt to rain-or-shine weather conditions and locational parameters. • EARNED MEDIA MECHANISMS: Photo opps, signups for added-value offers and more drive chatter, follows and media awareness. • PEOPLE: All brand ambassadors in the program went through rigorous training to ensure complete Army program knowledge, safety precaution and role responsibility understanding. • 45,000+ STAFF HOURS WORKED • 300+ DAYS OF EXECUTION • 250+ MARKETS VISITED • 5000+ SHIFTS COVERED

19. PRESENCE IN PRACTICE • Nestle: Nesquik • A yearlongcampaign in California not only generated brand awareness but grew to be a viral favorite. • HYPERLOCAL IMMERSION: Local-based field personnel knew the high-impact locations in each market. • CONSISTENCY: Street teams were ubiquitous throughout the market, hitting city landmarks, nightlife destinations, sporting events and festivals to deliver samples and premiums. • ADAPTABILITY:Our teams were agile and street-smart about their markets, able to take advantage of opportunities when they arose • EARNED MEDIA MECHANISMS: Creative stunts drove buzz; the Nesquik Bunny alone drove countless photos and social forwards. • PEOPLE:Besides appearances by the Nesquik Bunny, teams were young, enthusiastic and well-versed in the product…but also local, part of their communities. • OVER 600 EVENTS VISITED • OVER 10,000 COLLATERAL DISTRIBUTED • 500,000 SAMPLES DISTRIBUTED • EXPANSION INTO 2 ADDITIONAL MAJOR MARKETS IN 2012 • 20% INCREASE IN MARKET SHARE

20. PRESENCE IN PRACTICE Triscuit Home Farming Movement To promote the ‘simple’ nature of Triscuit, Kraft partnered with FFA and local “urban farming” advocates, garden clubs and community groups in a national “Home Farming” initiative. • HYPERLOCAL IMMERSION: Partnering with local advocates ensured effective community outreach and positive engagement. • CONSISTENCY: “Home Farming” was promoted at events, at local retailers, through a persiste online/social media campaign, even via 4 MM specialty packages. • ADAPTABILITY:Teams contended with local logistics, weather, even what crops were preferred in each market. • EARNED MEDIA MECHANISMS: An online community site and social tactics allow members of the “movement” to dialogue and promote their advocacy. • PEOPLE:Teams were training in the brand’s “simple goodness” platform and in how to dialogue with local advocates and consumers back-to-basics urban farming. • OVER 50 BRANDED GARDENS ACROSS 20 MAJOR MARKETS • 4 MILLION SPECIALTY PACKAGES AT RETAIL WITH IN-PACK “SEED KITS” • MEDIA TIE-INS A& COVERAGE BY ELLEN DEGENERES, HGTV AND MORE • CREATED AN ONGOING USER COMMUNITY AND ONGOING IN-MARKET PRESENCE • DROVE SALES & AWARENESS INCREASES OVER FLAT/DECLINING PRIOR PERIODS

21. 4x The Four Attributes result in integrated campaigns greater than the sum of their parts…

22. 4x …by multiplying the reach and influence of each consumer encounter.

23. It’s how we score in the Red Zone!

24. Consumers trust authentic, live, one-to-one brand encounters more than other touchpoints: 75%of consumers say that participating in a live marketing experience would make them more receptive to the product/brand’s advertising 75% of consumers said they would be extremely or very likely to tell others after participating in a live marketing event, extending impact through word-of-mouth 8 out of 10 consumers who had actually participated in experiential marketing in the past said that they had told others about their experience Source: Jack Morton Worldwide survey

25. In-person interactions create loyal customers better than other media: • Fully Engaged customers are more likely to have had face-to-face interactions with a brand. • 52% of Actively Disengaged customers had phone contact with a company compared with just 18% of Fully Engaged Customers. • 76% of fully engaged customers had • in-person interactions, versus 48% of • Actively Disengaged customers. 48% 40% 59% 60% 50% 40% 30% 17% 18% 14% 20% 10% 0% In-Person Interactions Traditional Advertising (print, radio, TV, etc.) Source: Constant Contact Spring 2012 Small Business Pulse Survey; Of the items you find to be effective, which do you rank as the #1 most effective? Total B2C B2B Source: Constant Contact Spring 2012 Small Business Pulse Survey

26. It holds at retail, too. • Why in-store and POP activation? Because “unseen is unsold”: • 74% of purchase decisions are made in the store (POPAI 1997). • Yet consumers look only at fractionsof brands available. • The key is to be able to manipulate attention (Dreze, Hoch, and Purk) • Sources: Woodside and Waddle 1975; Bemmaor and Mouchoux 1991;Wilkinson et al. 1982. Sales (coffee) 600 500 400 200 166 100 200 0 Regular Price -20% Without POP display With POP display Woodside and Waddle JAR 1975

27. Presence can drive earned media… • EARNED • This media consists of: • Social media channel content • Blogs, videos, comments, pictures, • Stories, conversations, wiki’s, • feedback, tweets, applications, • Emotion cons, and ratings. • ATTRACTS: • BOUGHT • This media consists of: • Print advertising • Television • Web banners, paid search • Media deals ATTRACTS: strangers • OWNED • This media consists of: • Corporate website • Portals • Microsites • ATTRACTS: fans customers

28. …the most valuable tool for brand awareness. Effect on Brand Awareness: 40% 30% 20% 10% 0% Source: 2011 study: emarketer.com, Synaptic Digital & Kantar Video

29. Major marketers will soon drink the Kool-Aid. • They’ve already embraced elements of Presence • Eventually they’ll integrate them under the Four Attributes

30. Major marketers will soon drink the Kool-Aid. Which marketing activities do you find to be effective for your organization? 83% 84% 81% 90% 71% 72% 70% 80% 68% 64% 75% 70% 60% 49% 56% 38% 41% 43% 38% 50% 33% 23% 49% 40% 22% 22% 22% 30% 21% 22% 19% 17% 18% 15% 17% 22% 10% 20% 10% 0% Email Marketing Website In-Person Interactions Social Media Marketing Events Phone Calls (for lead Generation, etc) Public Relations Direct Mail Traditional Advertising (print, radio, TV, etc.) Online Advertising (paid Search, etc.) Total B2C B2B Source: Constant Contact Spring 2012 Small Business Pulse Survey

31. What Differentiates Presence? How is Presence different from… • Experiential Marketing? • Event Marketing? • Guerilla Marketing? • PR/Stunt Marketing? • OOH/Alternative Media?

32. It comes back to 4x Any strategy or tactic becomes Presenceonly if they possess the Four Attributes

33. Let’s pick an example: an Experiential Marketing tour visiting retail, malls or festivals • Not Hyperlocal • Only in-market for a (relatively) brief period • Highly scheduled and locked into logistics • Some staff may be highly trained, evangelical and local

34. Guerilla marketing can come close… Can be hyperlocal, adaptable, andhave solid human assets on the ground

35. Presence is central… • Presence enhances the power of every medium and touchpoint • Cross-functional and complementary • Lends authenticity to other media by being…well, present in people’s lives

36. PresenceFails Why does a Presence-type program not succeed? “When an inadequate marketing planis used without integrating it with other marketing communication initiatives40 or when ambient communication is trivialized and used without any specific objective (e.g., it is used to imitate competitors or because it is a “trendy” communication tool).” Source: 2010 California Management Review, Vol. 52, #3

37. “When there is an inadequate creative concept and/or execution, either when the ambient initiative is not able to break through the clutter, grab consumers’ attention, and generate word-of-mouth, or when there is an exaggerated use of creativity that cannibalizes the brand and that is not congruent with the marketing objectives (e.g., when the…initiative is used “for its own sake” and does not add value to the brand).” Source: 2010 California Management Review, Vol. 52, #3

38. Source: 2010 California Management Review, Vol. 52, #3 “When there is a lack of environmental/contextual integration, which may occur either when there is an improper relationship with the local authorities or when ambient communication is improperly used to spread messages to sensitive audiences on delicate social topics where the initiative runs the risk of being misunderstood and obtaining a counterproductive impact on the audience.”

39. PresencePop Quiz Pick four disciplines from this list where Presenceworks particularly well. Why?

40. PresencePop Quiz Answers RELATIONSHIP MARKETING One-on-one encounters on a constant & consistent basis create dialogue & trust that drive relationships LOCAL IMMERSION MARKETING Understanding local preferences, trends, activities results in more focused and relevant actions COMMUNITY OUTREACH Being part of the community allows brands to be “good guys” and esteemed neighbors GRASSROOTS MARKETING Presence creates authenticity that helps drive “bottom up” strategies and loyalty at the local level

41. Measuring Presence What metrics & outcomes are important in assessing Presence? Why are those important? How do we measure them?

42. Your Consumer’s Day, Week, Month, Year… Presence provides a continuum of multiple touch points in a consumer’s life.

43. How do you measurePresence? By what outcomes matter most for you. Assessment can be based on results from multiple types of metric What types are specific to each program and goals Develop a “measurement matrix” before each program, with associated targets One goal or many?

44. Does Presence work? Following is an example of Presence Marketing sales trends compared to national and like-market trends, and observed ROI, drawn from a national CPG marketing program.

45. Growth vs other markets: PM Market A vs. others Year 1 AVERAGES (% Chg Vs YAG) PM MARKET A NATIONAL LIKE MARKETS CONVENIENCE $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs PM MARKET A NATIONAL LIKE MARKETS GROCERY $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs

46. Growth vs other markets: PM Market A vs. others Affects on grocery velocity (Q4 2011 – Present) Velocity: Q4 2011 - Present Distribution: Q4 2011 - Present PM Market: +12.1% Like Markets: +6.1% PM Market: +11.3% National: (7.4%) Like Markets: (7.0%) $ volume PM Market A: +28% (National +4%, Like Markets -1%)

47. Growth vs other markets: PM Market Bvs. others Year 1 AVERAGES (% Chg Vs YAG) PM MARKET A NATIONAL LIKE MARKETS CONVENIENCE $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs PM MARKET A NATIONAL LIKE MARKETS GROCERY $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs

48. PRESENCE MARKETING R.O.I. PM Expansion/Profit & Loss Analysis – 3 years (2013-2015) Based on current assumptions Cumulative NPS: $24.578MM Cumulative Margin: $8.318MM Total Investment: $13.300MM Net Investment: ($4.982MM) Opportunities not included Incremental Trade: $2.941MM Amplified effect (.5%): $1.562MM Synergies $1.064MM NET Investment (incl. opp):$.585MM Opportunity to create margin positive investment over time!

49. Are You Using Presence Already? What marketing programs do you have underway now that are Presence? Or…what programs could be modified to becomePresence programs?

50. What Makes Presence Work? Incorporating the FOUR ATTRIBUTES Logistical and executional investment Synergy with brand, with advertising, with online Tactical enhancements that extend Presence – social/mobile overlays, sales promotions, shopper marketing, to name a few Looking at consumer influence from the ground up, as an eye-to-eye encounter first and foremost