PPAI Association Update A Look Ahead The PPAI Expo January 13, 2016

Rick Brenner, MAS+ | PPAI Board Chair Tom Goos, MAS | PPAI Board Chair Elect

Paul Bellantone, CAE | PPAI President/CEO

We are no longer in a period of change. We are in an era of transformation.

Daniel Burrus

We are no longer in a period of change. We are in an era of transformation.

Daniel Burrus

It’s better to be nimble than to wish for clairvoyance.

Norm Hullinger

Today’s Agenda

• PPAI’s strategic direction • Industry drivers • Initiatives today and tomorrow

– Industry branding initiative – Public Affairs: legislative and regulatory leadership – Power of Two relationship – Industry research – Membership value – The business

• Town Hall discussion

2012 Strategic Plan

• Vision statement: To champion and advance the promotional products industry

• Mission statement: PPAI advocates the power and value of promotional products in the marketing and advertising professions to ensure the success of its members and the global industry

The Strategic Plan – 2012 Goals

1. Deliver great member value 2. Advocate for the industry 3. Engage the global marketplace 4. Manage an efficient, progressive and professional

organization

Strategic Plan Focus

• Visibility • Viability • Credibility • Community

• Commitment • Culture • Confidence

May 2015 PPAI Strategic Conversation

• Our central question: “What will PPAI need to look like to remain a vibrant, relevant and valuable association well into the future?”

• Our deliverable for the session: “Identify the key

trends and issues that PPAI must consider in its future strategic planning (to answer the question above).”

Background for Strategic Conversation

• Four Questions:

– What trends, issues and opportunities can you foresee that may affect your business in the future? (1-3 years/5-10 years)

– What trends, issues and opportunities can you foresee that may affect the industry in the future? (1-3 years/5-10 years)

– What trends, issues and opportunities can you foresee that may affect PPAI in the future? (1-3 years/5-10 years)

– What do you see as PPAI’s role in addressing the future trends, issues, and opportunities? (1-3 years/5-10 years)

Strategic Discussion

• Key Factors:

– Marketplace vs. Industry – Forrester research on loss of traditional B2B sales

jobs – Blending of B2B/B2C – H2H – Coke and Pepsi

Change Drivers

1. Technology 2. Demographic Shift 3. Globalization

Discussion Outcomes

• Acknowledgment that the industry and PPAI will change due to technology, changing demographics and globalization.

• Define our mission and meaning and invite those that share those values to follow us

• An opportunity to nurture a “big tent” mentality

• It’s better to be nimble than to wish for clairvoyance

Discussion Outcomes

• Best to addressing these challenges from a position of leadership. – It is difficult to drive change when situations are favorable, but

the results will be significantly better than if we were playing catch up

• There will be winners and losers, but those companies that have a strong sense of self, a nimbleness in response to challenges and a creative mindset are much more likely to succeed. – How can we best prepare our members for that reality?

Discussion Outcomes

• Best to addressing these challenges from a position of leadership. – It is difficult to drive change when situations are favorable, but

the results will be significantly better than if we were playing catch up

• There will be winners and losers, but those companies that have a strong sense of self, a nimbleness in response to challenges and a creative mindset are much more likely to succeed. – How can we best prepare our members for that reality?

2016 Strategic Planning Meeting

May 21-24, 2016 Watergate Hotel

2016 Strategic Planning Meeting

Legislative and Regulatory Leadership

Regulatory

• Product Safety Aware – Where we are – Renewal and initiatives for distributors – Promo Marketing collaboration

• Broadened scope to include responsibility and supply chain security

• Increased collaboration with CPSC

Legislative • LEAD successes • Expansion of LEAD Local

– Adding NY and MN to OH, PA, TX, CA

• Multi-channel approach – Industry specific issues – Coalition building and support

Industry Branding Initiative

Industry Branding Initiative

• Five-year, fully funded initiative to: – Influence the perception of promotional products – Increase spend on promotional products vs. other media

• PR firm, recognizable/respected spokesperson, media buys, member industry engagement and investment – SAXUM – at event to meet with members, leadership and

advisory group

• High level and grass roots • Work group • We need your case histories!

Power of Two Relationship

Power of Two

• New five-year agreement with SAGE • 1:1 membership

– 3,000 new members

• D00 – D02 billing transition to SAGE

Industry Research

Industry Research

• ITR Economics relationship to provide actionable, reliable data – Supplier and distributor reports – Comparison to related industries

• Member data acquisition through increased sample size

• We are not where we need to be to keep this program alive long term

• PPAI subsidized through 2016

Membership Value

Membership Value

• Tradeshow leadership: Expo and Expo East – Attendee acquisition – Customized experiences for suppliers and distributors

• Education – Certification – Millennial/Emerging Leaders – Suppliers

Membership Value

• Affinity programs – Hybrid Approach – Endorsement model

• Regional Relations – Regional Benchmarking Study – New, customized Regional Engagement Program – Delivery of PPAI and local products and services – Shared volunteer program with Regionals

Membership Value • Publications

– PPB Ranked #1 by readers for quality, integrity and usefulness

– Alliances with other publications – Increased readership from 12,400 to 15,400

• Transition from UPIC to Associate – Clean up database – Pro-active participation in exchange for continued benefits

• Development of Fellows program

Membership Value

• Development of Promotional Products Pioneers

• Deeper volunteer engagement & communication – Monthly newsletter, quarterly satisfaction surveys, VOM, VOY,

thank you cards and digital birthday cards

• International initiatives – Product safety education—Mexico, Hong Kong, Germany, UK – Relationships with other organizations – IFPPA, EPPA, PSI,

BPMA – Peer-to-peer strategy – International pavilions at US shows/PPAI booth at PSI Show

The Business

• Financial position continues to strengthen

• No debt • Unqualified Audits

• Reserves forecasted to be approximately 28% of revenue at the end of 2016

• Accurate revenue and expense forecasting – ~1% variance on revenue – ~3% variance on expenses

Town Hall Discussion