FINAL Presentation leave behind

IGNITER PROGRAM / RETAIL TRAFFIC TEAM

Presented by TAYLOR ROBINSON, KELLY PHILLIPS, RAJAH ANDERSON

Assignment

Our Approach

Key Findings & Opportunities

Recommended Program Strategy

Proof of Concept

Roll-out Recommendation

Conclusion

AGENDA

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IGNITER PROGRAM RETAIL TRAFFIC TEAM

Develop & analyze key traffic driving solutions for Eddie Bauer full-price stores

SHORT TERM GOAL Develop and implement a testable, sustainable, measureable concept

to increase foot traffic for the University Village store

LONG TERM GOAL Develop a sustainable, scalable,

and measurable traffic driving concept to increase foot traffic on

a chain wide level

ASSIGNMENT / GOALS

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OUR APPROACH / PROCESS

Industry & Eddie Bauer

Visit stores & conduct interviews

Market research survey

Metrics, traffic data, marketing programs

Idea exploration

Developed & tested

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KEY FINDINGS / TRAFFIC OPPORTUNITY

-40

-30

-20

-10

0

10

20

30

40

12/28/2013 1/28/2014 2/28/2014 3/31/2014 4/30/2014 5/31/2014 6/30/2014 7/31/2014% T

raffi

c C

hang

e

Industry vs. Eddie Bauer Full Price COMP

YOY Industry TrafficChangeEddie Bauer Full PriceCOMP

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• Increase relevance with a broader customer base

• Leverage local market opportunities

• Help store guides connect their stores with local communities

KEY FINDINGS / OTHER OPPORTUNITIES

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KEY FINDINGS / LEVERAGING THE OPPORTUNITIES

KEY OPPORTUNITIES

• Increase foot traffic

• Increase relevance to broader customer base

• Leverage local market opportunities

• Help store guides connect with local communities

HOW THEY INFORM OUR PROGRAM

Engage new customers

Show how Eddie Bauer fits into the lives of outdoor, active enthusiasts

Universal application to allow for market nuances

Provide simple, easy-to-use, tool for engagement

GUIDING PRINCIPLE It’s all about a genuine connection. If Eddie Bauer connects with the right people in the right situation and furthermore rewards them, then Eddie Bauer has now become relevant to their lives. This direct and strategically placed engagement with the brand will subsequently drive them into our stores.

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RECOMMENDED PROGRAM / ADVENTURE CARD

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TEST #1 TRIAL RUN

University of Washington Green Lake Park

9 Day Redemption Period 7/19- 7/28

RECOMMENDED PROGRAM / TESTS

TEST #2 LOCATION TYPE, MORE STORES

Tiger Mountain SPU Campus

Ballard Botanical Garden Queen Anne Farmers Market

Gas Works Park 5 Day Redemption Period

8/1-8/6

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TEST #1 TEST #2

• 950 distributed

• 11.6% visited store

• 8.5% purchased

• ADS: $28.90

• 117 distributed

• 17.82% visited store

• 15.36% purchased

• ADS: $36.94

RECOMMENDED PROGRAM / TEST RESULTS

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RECOMMENDED PROGRAM / TEST RESULTS

Foot traffic converted to a sale

Purchasers who were new customers

Visitors who signed up for Eddie Bauer Friends *50%

*80%

82%

*estimates based on store feedback

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10 DAYS BEFORE TEST 1

(7/9 - 7/18)

+20.7% TF

10 DAYS DURING TEST 1

(7/19 - 7/28)

+27.5% TF

10 DAYS AFTER TEST 1

(7/29 - 8/7)

+20.0% TF

RECOMMENDED PROGRAM / TEST 1 TRAFFIC RESULTS

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This is so fun and easy. I think all store managers can do it!

TEST #3

PRACTICAL APPLICATION BY STORE TEAMS

Store Team Participation Test and Learn

Fine-tune to Optimize Return

PROOF OF CONCEPT / TEST RESULTS

- Chris Kauffman, Co-Manager University Village

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GO WHERE THE OUTDOOR ACTION IS …

• Hiking trail heads • Active parks • College campuses

• Tailgates • Active community events • Ski resorts

ROLLOUT RECOMMENDATION / ADVENTURE REWARD

• Yoga studios • Marathons

Good morning! We’re here with Eddie Bauer rewarding people like yourselves for being active and outdoors! We have a reward card for you. Take it in to your local Eddie Bauer store and ask a store guide to reveal your reward!

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USE FOR GENERAL OUTREACH

• Student travel • Study abroad participants/events • Club meetings • Adventure travel agents • New store openings

THE LIVE YOUR ADVENTURE CARD HAS A UNIVERSAL APPEAL

ROLLOUT RECOMMENDATION / ENGAGEMENT TOOL

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ROLL-OUT RECOMMENDATION / PROJECTED RESULTS

Distribution of Rewards: 100,000

Foot Traffic Counts at 15%: 15,000

Transactions at 80%: 12,000

New Customers at 80%: 9,600

Friends Sign- Ups at 50%: 4,800

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ROLLOUT RECOMMENDATION / ROI

DISTRIBUTION REDEMPTION TRANSACTIONS ROI ANALYSIS ADS NEW

CUSTOMERS

Projected Results 100,000 12.00% 12,000 $456,000 $38.00

Less Discounts: $120,000

Net Sales: $336,000 $28.00

50% margin: $168,000

Less Expenses $130,000

Return on investment 12.00% $38,000 7,680

Return on investment 15.00% $80,000 9,600

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Creates brand relevancy Reinforces Eddie Bauer’s ownership of outdoor, active outfitting Tool to help Eddie Bauer stores make a connection with the community Fun, compelling, sustainable, scalable, and measureable Delivers an exciting customer experience—a great start to converting each and every visitor into loyal, high-value, lifetime customers Drives traffic!

CONCLUSION / HOW IT DRIVES TRAFFIC

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APPENDIX

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APPENDIX / TRAFFIC TRENDS

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013

Visits (Billions)

Source: Fidelity Investments

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APPENDIX / MARKET SURVEY RESULTS

• Of the participants, 75% either are in or went to a University and 29% either studied abroad or are planning to.

• 83% of survey participants are female, 8% male. • 67% of participants are between the ages of 18-25 • 4% between the ages of 26-40 • 8% between the ages of 40-55 • 17% 55+

• When asked what words come to mind when they think of Eddie Bauer, some responses were:

“outdoor clothes, good quality, outdoorsy, jackets, traditional, quality, active, green, old, mom, outerwear, classic, expensive, adventure, mature, reliable” • 50% of people go into a store with a specific purpose, while 29% go

into browse and have no specific reason. 20% are comparison shoppers, meaning they go from store to store to find the best deals.

• When looking for outerwear people ranked the most important

qualities they look for. Comfort Fit Style/look Durability Functionality Color brand

• When asked if they currently shop at Eddie Bauer, 17% said yes, 58% said no, and 25% said they occasionally will shop their or they will to buy something for someone else.

Some reasons people said they didn’t shop there were: “ I don’t know what that is” “ I’m younger and they don’t seem to have my style” “I feel Eddie Bauer is not as well known as North Face and other outerwear brands” “ seems like a place only my mom goes, I’d rather go to a more age appropriate store” “it seems to old for me” “I see it for an older client, but I have bought several pieces for my dad” “I have other places I shop, it never crossed my mind” • When asked what their top favorite outdoor activities

were, many people said: fishing, camping, walking, kayaking, running, boating, snowboarding, biking, swimming, hiking, hunting, rock climbing.

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Test 1 Results LIST Total REDEMPTION TRANSACTIONS ROI ADS

Distribution 950 8.52% 81 $3,151 $38.90

Gross Sales: $3,151

Less Discounts: $810

Net Sales: $2,341 $28.90

50% margin: $1,171

Less Expenses-Prototype 1830

Return on investment -659

Test 2 Results LIST Total REDEMPTION TRANSACTIONS ROI ADS

Distribution 117 15.38% 18 $845 $46.94

Gross Sales: $845

Less Discounts: $180

Net Sales: $665 $36.94

50% margin: $332

Less Expenses 150

Return on investment 182

APPENDIX / TEST 1 & 2 PROGRAM ROI

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APPENDIX / TRAVEL CHECKLIST FOR HER

ATTACH ONTO BAG TAG FOR COLLEGE

OUTREACH

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APPENDIX / TRAVEL CHECKLIST FOR HIM

ATTACH ONTO BAG TAG FOR COLLEGE

OUTREACH

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FINAL Presentation leave behind