Research Samples

HomeRunMEDIA

March 28.2012

Why is research important?

HomeRunMEDIA

While  tradi+onal  Direct  Response  relies  heavily  on  ‘trial  &  error,’  it  can  produce  a  lot  of  waste,  as  can  drive-­‐to-­‐retail  and  branding  campaigns-­‐-­‐  with  dollars  spent  in  media  that  speaks  to  a  disinterested  audience.  

By  compiling  consumer  data  based  on  qualifiers  that  best  describe  your  target,  we  can  see  how  large  your  poten+al  audience  is,  who  they  are,  what  media  they  prefer  and  when  they  prefer  it.  We  can  get  a  beEer  feel  for  not  only  the  lowest  lying  fruit-­‐  but  also  secondary  targets  that  we  hadn’t  previously  considered.    

We  consider  both  volume  of  your  target  against  media,  as  well  as  ‘interest’  or  proclivity  (index)  when  reviewing  which  media  they  turn  to  most.  We  overlay  popula+on  data  against  other  qualifiers  related  to  your  product-­‐  such  as  those  who  visit  pharmacies  4+x/week,  or  those  who  use  a  lot  of  beauty  products.

In  the  slides  that  follow  you  will  see  snippets  from  a  myriad  of  different  research  exercises.  Some  are  snapshots  of  full  pages  you  might  see;  others  are  pieces.  What  you  are  looking  at  will  be  described  with  a  grey  narra+ve  for  your  convenience.

Your Target Audience

HomeRunMEDIA

First we will describe how we determined qualifiers for your target & what we are ‘naming’ this group of people. We do this so we have a way to reference them throughout the campaign.

(Often, we will collaborate with you to help set the best qualifiers for determining this target)

We identified that the women who have a House Hold Income (HHI) under $75K are more likely to do at home nail care. So, we included HHI as part of our

qualifiers and combined it with women who frequently use nail enhancement products (base coat,

polish, top coat). This helps identify the potential growth market for FAKE NAIL PRODUCT. We have

identified these as Home Saloners.

Your Target Audience

HomeRunMEDIA

We list the approximate size of this audience in the US population and outline

who comprises it.

TOTAL  US  MARKET  SIZE  Parents  of  Children  2-­‐6  yrs.  of  age  &  Often    involved  in  Outdoor  

Activities  –  OUTDOOR  PARENTS~18.7  Million  

PRETEND  OUTDOORSY  KIDS  PRODUCTCore  target  ‘Outdoor  Parent’  is  :  

¥ 77%  Age  25-­‐44¥ 50%  Af*luent  home  HHI  $60-­‐150K¥ 68%  of  parents  have  2+  Children¥ Mostly  living  in  current  address  1-­‐4  yrs.¥ Predominantly  white  ¥ 68%  Attended  College  

Your Target Audience

Age  &  Income  of  the  Online  Bidders10%$

13%$

16%$17%$

17%$

28%$

0"

20"

40"

60"

80"

100"

120"

140"

160"

180"

0%"

5%"

10%"

15%"

20%"

25%"

30%"

Age"18.24" Age"25.34" Age"35.44" Age"45.54" Age"55.64" Age"65+"

%$Online$Bidders$ Index$

18%$

15%$

12%$

10%$

12%$

10%$9%$ 9%$

3%$2%$

0$

40$

80$

120$

160$

0%$

5%$

10%$

15%$

20%$

HHI$<$20k$ HHI$$20129k$ HHI$$30139k$ HHI$$40149k$ HHI$$50159k$ HHI$$60174k$ HHI$$75199k$ HHI$$1001149k$ HHI$$1501199k$ HHI$$200k+$

%"Online"Bidders" Index"

HHI - Online Bidders

Age - Online Bidders

• 62% Age 45-65+• Strong volume and penetration of among 65+ • As income grows, it affects an individual’s drive to

seek investing time on bidding for online deals • Additional user details will be necessary to further

pinpoint PRETEND COMPANY’s media target

We begin exploring the characteristics of the target

Such as Age & Household Income..

TELEVISION COVERS 30% MORE OF THE TARGET THAN INTERNETMedia Coverage & Index

Average Number Issues/Hours Spend by Media Vehicle

• Using a Direct Response Television strategy will allow FAKE JEWELER to reach an additional 2.4 Million (44% above) people that are planning to get engaged this year, that would otherwise would not be reached using Internet alone.

• Television’s branding capability allows a TV campaign to generate additional credibility to the FAKE JEWELER brand and lower cost-per metrics for other media platforms

• Television’s demonstrative properties allow a massive volume of consumers to get exposed to the top quality products that FAKE JEWLER produces• Though not as large as TV, Magazines(7-20% target coverage over internet) and Radio (22-28% target coverage over internet) also offer a significant coverage of consumers

that have or plan to get engaged. Radio may not be a natural fit since its not a visual product; Magazine placement would be most efficient when placed on endemic diamond or engagement content.

• Target spends more time using Television than any other Media

• Average # hours watching TV per month: 143/139hrs. (Cable TV 217/228 hrs)

14# 14#

74#

141#

50#

13#

217#

64#

14# 15#

80#

139#

49#

13#

228#

64#

MAGAZINE#ISSUES#

NEWSPAPER#ISSUES#

RADIO#HRS# TOTAL#TV#HRS#

PRIME#TV#HRS#

DAYTIME#TV#HRS#

CABLE#HRS# INTERNET#HRS#

Bought#Engagement#Ring/12#Mos# Planning#to#get#Engaged#Next#12PMonths#

68%$

51%$

88%$90%$

84%$

35%$

82%$

60%$

81%$

59%$

83%$

92%$

79%$

38%$

81%$

61%$

75$

85$

95$

105$

115$

125$

0%$

20%$

40%$

60%$

80%$

100%$

MAGAZINES$NEWSPAPER$ RADIO$ TOTAL$TV$ PRIMETIME$

TV$

DAYTIME$TV$ CABLE$TV$ INTERNET$

%$Bought$Engagement$Ring/12$Mos$ %$Planning$to$get$Engaged$Next$12OMonths$ Index$Bght$Ring$ Index$To$Be$Engaged$

Bar  Graph  –  %  of  target  Bought  Eng  Ring/12  mos  (3.7MM)  &  Planning  Engage  /12  mos  (16.5MM)Line  Graph  –  Index  Measure  of  target  preference  against  total  US  popula+onSource  –  MRI  DoubleBase  2011  

...and media usage

CONCENTRATE ON MARKETS WITH SATURATED WITH LIFE ORGANIZERS & IDEAL SEEKERS

• Target is dispersed throughout a large number of DMA’s in the country, indicating the need for a national media campaign to maximize coverage and efficiencies

• Future market selection will involve additional results mapping of Online Financial Tool responses that will be attributed by zip code to identify the most productive markets

HomeRunMEDIA

DMA  -­‐  MARKET Population  Life  Organizer  (000)

%  Coverage  Life  Organizer

IndexPopulation  Ideal  Seekers  (000)

%  Coverage  Ideal  Seekers

Index  

New  York,  NY  [1] 885 7% 111 281 8% 117Los  Angeles,  CA  [2] 755 6% 107 211 6% 104Chicago,  IL  [3] 514 4% 135 93 3% 85Dallas-­‐Ft.  Worth,  TX  [5] 341 3% 130 64 2% 86Philadelphia,  PA  [4] 328 3% 116 110 3% 124Houston,  TX  [10] 308 3% 136 68 2% 114Washington,  DC[9] 272 2% 111 128 4% 181Seattle-­‐Tacoma,  WA  [14] 264 2% 140 46 1% 85Atlanta,  GA  [8] 247 2% 99 91 3% 127Miami-­‐Ft.  Lauderdale,  FL  [16] 225 2% 111 82 2% 140Detroit,  MI  [11] 193 2% 97 70 2% 122Minneapolis-­‐St.  Paul,  MN  [15] 189 2% 111 28 1% 57Phoenix  (Prescott),  AZ  [12] 187 2% 107 33 1% 67San  Francisco-­‐Oakland,  CA  [6] 186 2% 67 101 3% 127Denver,  CO  [18] 185 2% 116 68 2% 148San  Diego,  CA  [28] 184 2% 126 57 2% 136Tampa-­‐St.Petersburg,  FL  [13] 179 2% 105 51 1% 104Boston  (Manch),  MA-­‐NH  [7] 179 2% 71 38 1% 53Sacramento,  CA  [20] 167 1% 97 40 1% 82Portland,  OR  [22] 148 1% 122 18 1% 53Cleveland-­‐Akron,  OH  [17] 131 1% 84 39 1% 87Baltimore,  MD  [26] 121 1% 109 46 1% 138St.  Louis,  MO  [21] 121 1% 96 24 1% 67Orlando-­‐Daytona,  FL  [19] 118 1% 83 40 1% 97Nashville,  TN  [29] 109 1% 119 20 1% 74Indianapolis,  IN  [25] 107 1% 99 28 1% 92Raleigh-­‐Durham,  NC  [27] 106 1% 100 25 1% 84San  Antonio,  TX  [37] 102 1% 107 22 1% 81Fresno-­‐Visalia,  CA  [55] 99 1% 140 19 1% 93Milwaukee,  WI  [35] 99 1% 104 24 1% 87

High Penetration [red] Markets – Life Organizers and Ideal Seekers Combined

High index/penetration Markets

Top 30 Penetration Markets

...as well as geographical trends for your target

TOP CABLE TV NETWORKS TO REACH THE ACME MAKE-

BELIEVE TARGET

• By focusing on networks that have strong as coverage and indexes for consumers looking to set lifestyle and financial goals

• Shared networks help identify most efficient networks

• As part of the planning process, HomeRun Media planners combine this data with each networ ks aud ience de l i ve r y performance and discuss with the buying team to set campaign’s network priority

HomeRunMEDIAShared Networks

NETWORKPopulation  Life  Organizer  (000)

%  Coverage  Life  Organizer

IndexPopulationIdeal  Seeker  (000)

%  Coverage  Ideal  Seekers

Index  

Weather 4,183 34% 98 1,263 35% 100Discovery 4,040 33% 97 1,179 33% 96CNN 3,937 32% 104 1,162 32% 104History 3,710 30% 90 1,223 34% 100Fox  News 3,646 30% 97 1,122 31% 101Food  Network 3,530 29% 107 900 25% 92HGTV 3,240 27% 132 763 21% 105Lifetime 3,229 27% 110 757 21% 87A&E 3,169 26% 104 829 23% 92Animal  Planet 3,116 26% 109 918 25% 108ABC  Family 3,032 25% 106 935 26% 110ESPN 2,994 25% 80 1,123 31% 102TLC 2,805 23% 108 744 21% 97MSNBC 2,502 21% 110 714 20% 106E! 2,141 18% 108 462 13% 78Syfy 2,078 17% 105 578 16% 98CNBC 2,018 17% 105 561 16% 99Nickelodeon 1,780 15% 107 561 16% 115ESPN2 1,775 15% 78 730 20% 108TV  Land 1,741 14% 115 500 14% 111Bravo 1,646 14% 107 360 10% 79LMN 1,512 12% 115 328 9% 84BET 1,411 12% 113 405 11% 110truTV 1,412 12% 99 371 10% 88OWN 1,395 11% 109 309 9% 82ESPNews 1,363 11% 92 449 12% 103Oxygen 1,358 11% 116 304 8% 88Travel 1,206 10% 101 306 9% 87HLN 1,175 10% 137 351 10% 138BBC  America 951 8% 119 281 8% 119DIY 945 8% 127 285 8% 129NFL  Network 919 8% 91 360 10% 120Speed 908 7% 89 347 10% 115TV  Guide 888 7% 102 157 4% 61Inv  Discovery 803 7% 126 204 6% 109Bio 795 7% 111 255 7% 121WE  tv 778 6% 122 127 4% 68History  Int 760 6% 100 213 6% 95SOAPNet 736 6% 130 152 4% 91The  Science  Channel 704 6% 101 229 6% 111Style 687 6% 134 135 4% 89ESPN  Classic 678 6% 101 235 7% 118CBS  College 676 6% 99 216 6% 107Cooking   650 5% 119 176 5% 109FSN 513 4% 73 235 7% 114TV  One 440 4% 129 158 4% 157INSP 82 1% 67 46 1% 127

Bar  Graph  –  %  of  target  Age  35-­‐54  Ideal  Seekers  (3.6MM)  &  Life  Organizer  (12.2MM)Line  Graph  –  Index  Measure  of  target  preference  against  total  US  popula+onSource  –  MRI  DoubleBase  2011  

...and hot media ‘titles’ within the strongest media channels that best reach your target

Why do we care about the competition?

HomeRunMEDIA

Keeping  an  eye  on  what  your  compe+tors  are  doing  tells  us  a  lot:  it  tells  us  how  many  others  we  are  up  against  in  gecng  your  target’s  aEen+on.  We  look  at  where  and  how  oden  they  are  communica+ng  with  the  audience,  how  are  they  posi+oning  their  product  &  communica+ng  their  offer,  and  the  trends  and  changes  in  their  spending  habits.

How  do  these  things  impact  us?  Who  is  new  to  the  marketplace  this  quarter,  and  how  can  we  keep  their  share  down  and  ours  up?  Can  certain  spend  trends  be  correlated  to  varia+ons  in  product  offering?  What  are  they  overlooking  that  we  can  capitalize  on?  Are  some  compe+tors  increasing  spend  month  ader  month  in  certain  media  channels?  What  is  the  tone  of  consumer  online  chaEer  pertaining  to  our  compe++on,  and  how  can  we  tailor  our  message  to  address  that  topic  for  our  product?    How  does  their  crea+ve  message  differ  from  ours?  

Finally,  how  will  we  take  what  we’ve  learned  and  apply  it  to  a  stronger  campaign  that  will  boost  revenues  and  reduce  compe++ve  share?

The  following  slides  show  just  a  few  samples  of  topline  compe++ve  analyses  we  do.  Consulta+on  with  you  would  determine  just  how  detailed  the  data  presented  will  be.

Dark & Lovely Motions Org Root Stim Optimum Mizani Ultra Sheen Liquid Keratin Luster Design Esse Cr Of Nature Dr Miracles Gentle Treat. Rts Of Nature African Pride

$75,203$89,346$95,900$112,753$191,800$191,800$229,225$238,531$280,586

$618,317$740,455

$1,563,797

$1,955,575

$2,751,889

HAIR RELAXER/GLOSSER MEDIA SPEND • Category spend from November 2010-October 2011 was $9.23 million.

• Dark & Lovely, Motions and Original Root Stimulator are the biggest players in the relaxer/glosser category

• Of these competitors Dark & Lovely and Original Root Stimulator (ORS) spend almost 2/3 of their budget on magazines and the rest mostly on Cable, while Motions spend most of their budget on Cable TV

• Most media spend on Magazines, Cable and Syndication is specifically targeted to African Americans women, however some spend was also focused on reaching English speaking Hispanic women

Source: Kantar Media Intelligence

Category Spend by Media Vehicle

Magazines61%

Cable TV26%

US Int-Display4%B-to-B

3%

Syndication2%

Local Radio2%Natl Spot Radio

1%Outdoor

1%

Spend by advertiser Nov 2010 - Oct 2011 Category Spend - $ 9.23 Million

(Category media mix, Competitive Spend)

ANTI-FUNGAL NAIL PRODUCT MEDIA SPEND SEASONALITY JAN’11 - NOV’11

• Category has strong spikes in spend during the warmer spring and summer months to capitalize on the increase of humidity and perspiration that happens during those periods

• Of all measured competitors in the category, FakeFoot was the only on that spent throughout all months of the year

• Pretend Cream started their media spend in February and increased spend as climate got warmer and was the only competitor to use a mix of :10,:15 and :30 second spots

• MadeUpocide used only :10ss spots, while FakeFoot only used :15ss, Faux Feets., a female targeted product, only used 2 minute spots

Source: Kantar Media Intelligence

$0

$300,000

$600,000

$900,000

$1,200,000

Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011 July 2011 Aug 2011 Sept 2011 Oct 2011 Nov 2011

:10 Secs61%

:15 Secs22%

:30 Secs17%

Spot Length Mix

HomeRunMEDIA

(Category spend seasonality)

TOP MEDIA PROPERTIES BY THE MEDIA TYPE

• Most media spend on Magazines, Cable and Syndication is specifically targeted to African Americans women

• Cable - BET (Award shows, reality show, talk shows, Top 10 shows), VH-1 (Basketball Wives), Bravo (Real Housewives of Atlanta).

• Its very likely that advertisers had activity on TV ONE and Centric - However both these networks are not measured by Kantar

• Magazines - Essence, JET and Ebony - Mizani and ORS spend more on Latina Magazine than on JET

• Internet: Both Dark & Lovely and Roots of Nature had activity on Walmart.com,

Source: Kantar Media Intelligence

JET5%

LATINA6%

EBONY23%

ESSENCE67%

BRAV2%

VH-18%

TBS8%

BET82%

LATINA.COM1%

BET.COM2%BLACKPLANET.COM

21%

ESSENCE ONLINE33%

WALMART.COM44%

PHILADELPHIA5% HOUSTON

11%

WASHINGTON,DC11%

CHICAGO16%

ATLANTA57%

Magazines - 5.6 Million Cable TV - 2.4 Million Internet - $374,368 Local Radio - $188,878

(Preferred properties within media channel)