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Business Presentation / Work proposal GPA

Presentation- Bropo- Business Associates- Work Team- Financial Support

Chile and South AmericaWhy JAKO?Why BROPO?JAKO Product lines interestMarket Research- Customer segmentation- Main Segments description

Initial Promotional Strategy

Meeting Agenda

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BropoBusiness AssociatesWork TeamFinancial Support

Presentation

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Bropo SpA, company by stocks, established on March 8th, 2013, with indefinite duration.

Its headquarter is in Santiago, with high options to open agencies, subsidiaries, offices in other cit-ies of the country, even in foreign countries.

The main goal of the company is the import, ex-port, distribution, purchase, wholesale and retail of all kind of real and personal properties of any nature; likewise, the representation of all kind of national or foreign brands and all other activities related to the above mentioned.

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Bropo Associates

Víctor Manuel Cueto Cardona

Colombian business man, living in Chile for more than 12 years.

Founding partner and General Manager of the prestigious Chil-ean company Mantenimiento Técnico Industrial Ltda., Mant-predict Ltda., Service Station in Chile of the renowned Austrian company Liebherr, for its Port Mobile Cranes and Ship Cranes Division, among other compa-nies formed, managed and con-trolled by Mr. Cueto in Chile and the rest of South America.

Claudio Marcelo Pozo Alarcón

Professional Photographer and creator of “Grosnia” Communica-tions Agency. He worked as Sen-ior Product Trainer at Canon Latin America for eight years.

At academic level, he was teacher of Photography and Digital Image and Digital Communication post-graduate Classes at the Universi-dad del Desarrollo. Currently, he gives classes of Photography Test at the Universidad Peruana de Ciencias Aplicadas (UPC) in Lima, Peru and at Universidad del Desar-rollo in Chile.

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Our HistoryBoth associated partners are Directors of Fernandez Vial Sport Club (Tercera División A) of Concepcion, Chile; now, they are evaluating to be shareholders of SAD (Segunda División) of Linares, Chile, at the end of the current year.

Club DeportivoFernandez Vial de Concepción

Club DeportivoSAD Linares

Víctor Manuel Cueto Cardona

Claudio Marcelo Pozo Alarcón

Currently, his companies control 80% of Chilean ports by means of technical maintenance and spare parts supply for Port Mobile Cranes.

The professionalism and re-sponsibility in the development of the activities have allowed Mantpredict´s services to cross Chilean borders, landing in Peru.

Former Photographer for the Chil-ean Football Team; he worked as STR Photographer for France Presse agency and constantly col-laborated with “El Gráfico Edición Chile” magazine.

Besides, he participated in the creation of “El Gráfico Image Bank”, linked to a prestigious Ar-gentinean sport publishing, apart from marketing campaigns for brands like Coke and Red Bull.

Claudio Pozo is the representa-tive of football players, with 47 players under his administration.

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Team of Work

Licensed Lawyer from the University of Con-cepcion. Post graduate studies in Maritime Law and Strategic Con-tract Management.

“Project manager and commercial advisor for the companies in the Holding owned by Víc-tor Cueto Cardona”

Commercial Engineer with financial and man-agement specialization. 20 years of experience in Commercialization, Communication, Brand Management, and Re-lational Marketing for numerous companies. Currently Executive Director for GPA Con-sulting.

“Commercial Manager”

English-Spanish Trans-lator from the Univer-sity of Concepcion.

“General Assistant to the Management for the companies in the Holding owned by Víc-tor Cueto Cardona”

Industrial Engineer with strategic man-agement mention from the University of Chile. Currently working as a project manager for Latam Airlines Group.

“External project advisor”

Cristian Medina Fernández

Paula Alvarado Lazzarini

Viviana Alburquenque Marianjel

Francisco Echeverría Vicencio

Financial Support

Incluir Facturación y contratos…Profitable previous and current business for investing asociates.Chilean and International Banking accounts and support.Currently expanding business through South America.

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An investment opportunity

Chile and South America

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Investing in ChilePopulation: 16.572.475

Country 2013 2014

India 9.5 9.2China and Hong Kong 8.9 8.6Indonesia 6.7 6.0

Brazil 5.0 4.5Mexico 5.0 5.0South Africa 5.0 4.5Chile 4.9 4.7Colombia 4.2 4.1Argentina 3.8 4.3Rusia 3.8 4.4Poland 3.0 4.2Czech Republic 1.5 2.6

Rapid-Growth Markets ForecastWinter 2013(Selected economies, real GDP GROWTH, 2013-2014)

Best positioned economy in LATAM

First south American country in the OCDE

Credit rating Standard & Poor’s: A+

A solid gateway to South America

Annual GDP growth 4,8%

FTA with the EU

Chile: Foreign Direct Investment 2003-2012

4.334

7.2417.097

7.426

12.572

15.518 12.887

15.373

17.299

28.152

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

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A gateway to the rest of South America

BrazilPeru

Argentina

Population: 387 MHost to upcoming major sports events:2014 FIFA World Cup, Brazil2014 Sudamericano de Atletismo, Chile2014 Juegos Sudamericanos ODESUR, Chile2015 Copa América, (TBD: Chile, Bolivia, Mexico)2015 Campeonato Sudamericano SUB 20, Uruguay2015 FIFA U-17 Worldcup, Chile2016 Olympic Games, Brazil

And home to: More than a hundred football teams affiliated to CONMEBOL Copa Sudamericana Copa Libertadores de America Rally Dakar Copa Davis

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Currently no presence in South AmericaGood references from associated soccer playersHigh appreciation for European Brands in the South American marketExtensive catalogue in terms of product lines and varietyGreat previous experience with European Partners

Why JAKO?

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Business Experience.Sport Industry Experience.Financial Support.Strong Local Networks.Nationwide presence.We are passionate about the sporting industry.

Why BROPO?

Chile: an attractive country for foreign investment.Great potential for further re-gional growth.Poor service level for many current local competitors.

Market Opportunities

Internal Strengths

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Vision, Mission & Road MapBusiness ModelMarket ResearchMarketing Plan

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“What we want is for Bropo to be JAKO in Chile”

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Our Commitment to JAKO in South America

“Our Vision is to become a leading supplier for sports teams and institutions in South America”

“Our Mission is to deliver Top Quality sporting equipment Timely and at a Competitive price”

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Our Expansion plan for JAKO in South America

2013 2014 2015 2016ChileFootball Teams and InstitutionsRunning Events

ChileOther disciplinesSporting Events

Argentina & PeruFootball Teams

ChileRetail Store

BrazilOther disciplinesRetail

Regional expansion plans

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Starting Point: Commercializing JAKO in Chile

Our Business Plan

PartnersMeds (sporting medical center)

Chilean Olympic Committee

Regional and National Sport Ambassador

International Carriers

Custom Agents

Customer SegmentationCorporate:

Sport Teams and Institutions for all of JAKO’s product lines

Retail: RunningFootballOutdoor

Our Value PropositionProducts: “JAKO sporting goods through all of its lines”

Bropo Service PromiseQualityPriceResponse Time

Key ActivitiesWeb Sales Platform

Sales and Purchase Logistic

Customer Relationships

Corporate: Long term contracts for sports teams

Massive Customers:Frequent client programs

Key ResourcesJAKO Products

Internal Transport Logistic Partner

Long-term con-tracts with sup-plier and partners

Direct Marketing Resources

Distribution channelsCorporate: Direct and dedicated Sales Force

Massive Customers:Web SalesDepartment Stores

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“What we are planning to distribute”

Product Lines

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Basically: every product line, with certain focus based on the most attractive markets

FOOTBALL

TEAM LINE

RUNNING HARDWARE WOMEN

BASICS

BASQUETBALL HANDBALL VOLLEYBALL

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Institutional: Sports Teams and InstitutionsRetail: Football, Running & Outdoor

Market Research

“Who and how are our potential customers in Chile and abroad”

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Main Client SegmentsF

oo

tbal

l PROFESIONAL EDUCATIONAL INSTITUTIONS PRIVATE FOOTBALL LEAGUES PUBLIC INSTITUTIONS FOOTBALL SCHOOLSAMATEUR FOOTBALL

First Division A Schools Enterprise Armed forcesRegional Associations

First Division B Universities Municipal and Private Municipality

Second Division

Bas

ketb

all

Oth

er M

arke

tsR

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PROFESIONAL EDUCATIONAL INSTITUTIONS

VOLLEYBALL

RUNNING

TENNIS

FOOTBALL

RALLY

OUTDOOR

DIMAYOR Schools

Local Associations Universities

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Football

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Professional Clubs in Chile

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14

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First Division A

First Division B

Second Division

44 Professional

Clubs

Disaggregated MarketStrong regional brands on small clubs: Training Professional, DalPonte and PenaltyAverage time with the cur-rent brand: 4 years

Training Professional

DalPonte

Diadora

Mitre

Joma

Lotto

Penalty

Umbro

Uhlsports

Otros

Competition overview 20%

16%

11%

11%

9%9%

7%

7%

7%

7%

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Clubs: 18

Series for each Club: 8 avg.

Competition:11 sports brands

Average time with the cur-rent brand: 3 years

Main purchase model: Exchange

Purchase decision maker: Board DirectiveDecision variablesQualityPriceDelivery Time

Product lines:FootballTeamlineHardware

Purchase Volume:2000 equipment/year

Segment Profile

First Division B

Second Division

First Division A

Professional Clubs in Chile

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Segment Competition

First Division B

Second Division

First Division A

Professional Clubs in Chile

TEAM BRAND SINCE

Audax Italiano Diadora 2006Cobreloa Lotto 2012Cobresal Lotto 2005

Colo-Colo Umbro 2006Deportes Antofagasta Training

Professional2010

Deportes Iquique Lotto 2012Everton O’ Concept 2012Huachipato Mitre 2009Ñublense Uhlsport 2013O'Higgins Diadora 2012Palestino Training

Professional2007

Rangers Lotto 2011San Marcos de Arica DalPonte 2012Santiago Wanderers Mitre 2009Unión Española Joma 2010Unión La Calera Training

Professional2007

Universidad Católica Puma 2008Universidad de Chile Adidas 1999

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Segment Profile

First Division B

Second Division

First Division A

Professional Clubs in Chile

Clubs: 14

Series for each Club: 6 avg.

Competition:9 sports brands

Average time with the cur-rent brand: 3 years

Main purchase model: Purchase

Purchase decision maker: Board Directive

Decision variables:PriceQuality

Product lines:FootballTeamlineHardware

Purchase Volume:300 equipment/year

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Segment Competition

First Division B

Second Division

First Division A

Professional Clubs in Chile

TEAM BRAND SINCE

Barnechea Mitre 2013Coquimbo Unido Uhlsport 2013Curicó Unido DalPonte 2012

Deportes Concepción Penalty 2013Deportes Copiapó Romma 2013Deportes la Serena Penalty 2013Lota Schwager Training

Professional2003

Magallanes DalPonte 2013Deportes Naval Erreá Sports 2013San Luis Training

Professional2009

Santiago Morning Training Professional

2007

Unión San Felipe Joma 2010Unión Temuco M11 Sport 2011Universidad de Concepción

Penalty 2012

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Segment Profile

First Division B

Second Division

First Division A

Professional Clubs in Chile

Clubs: 12Main purchase model: PurchaseDecision variables:PriceQualityProduct lines:FootballTeamlineHardwareCompetition:11 sports brands

TEAM BRAND

Deportes Linares RommaDeportes Melipilla Training

ProfessionalDeportes Puerto Montt

Evensport

Deportes Temuco PenaltyDeportes Valdivia UmbroIberia NorwestSan Antonio Unido DalPonteTrasandino LottoAudax Italiano B DiadoraColo Colo B UmbroÑublense B UhlsportUnion Española B Joma

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Some more FootballBasketballVolleyball

Other Customer Segments

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Other Client Segments

Amateur Football Universities and School Leagues

ANFA (Main association) 59 Universities

Football Schools

1.000 football schools along the country

Basketball

4 Mayor Leagues

Volleyball

5 Main Leagues

15 Regional Association 3.000 Schools in Santiago + Concepción

4.690 Clubs

659.254 Players

20 Professional Teams 14 Semi-Professional Teams

50 Semi-Professional

Football

Basketball Volleyball

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FootballRunning

Retail

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Football Retail marketM

arke

t

Simpatizante

Hincha

Fanático

Colo Colo

U. de Chile

U. Católica

90% of the Chilean population follows a football team

The main sales channel is department stores retail

81% are fans of the 3 main clubs: Colo-Colo, Universidad de Chile and Universidad Católica

Almost 50% declares to be a passionate fan

The main profile is defined by the following attributes:

This accounts for a potential of almost 12 M clients for those teams brands

13%

36% 51%

11%

37% 52%

VARIABLE PREDOMINANTE %

Género Masculino 95%Edad 18-35 58%NSE C2 34%

Sector Urbano 87%Regiones RM 39%

VIII 12,40%Motivo de la práctica Entretención 47%

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Running MarketsR

etai

l

Co

rpo

ratePotential Market: 2,5 M

Client: RunnersSales Channel: Department Stores

2nd most popular sport in Chile51% sales trough department

stores

Client: EnterpriseSales Channel: Direct Sales Force

More than 40 massive running events in 2012Some of the major events:Brooks Run 4.000 runnersWe Run Santiago (Nike 15/12/2012): 10.000 runnersIND Run 2012: Over 20.000 runners

VARIABLE PREDOMINANTE %

Género Masculino 62,2Edad 18-25 26,6NSE ABC1 53,1

Sector Urbano 93,4Regiones RM 59,6Motivo de la práctica Entretención 30,6

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“How are we going to market JAKO in Chile: a first approach”

Promotion Strategy

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Promotion Strategy

Brand Positioning

Brand Positioning

PPRR

Sales Promotion

Sales Force

Viral Marketing (word of mouth) Especial resources to improve long term customer relationshipsFidelization activities (Customer acquisition and retention)

WebSpeciaized media (Magazines, TV and Radio Shows)Brand sponsoring

Product launching events with media coverageIndividual social and sporting events invitationsCorporate gifts

* “Promotion is to communicate, inform and persuade the customer and other stake-holders on the enterprise and its products”

Direct Promotion: Discount, exchange and corporate gifts and Brand NewsletterIndirect Promotion: Chanelized thorud our partners network

Sale excecutives for major corporate segments.

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