embrace the evolution

WHO IS CHRIS KAPPES?

Frustrated musician

Marketing and Sales guy

Account coordinator to president

Kitzing: Form follows function

George P. Johnson: High design

Contempo: European design sensibility

Sparks: Multi-dimensional environments

Matrex: Blending art and science

WHAT HAVE I LEARNED?

Clients don’t want exhibits or events...

they want outcomes that exhibit/events create...

...for less

THE WORLD TODAY

INDICATOR VALUEInflation -2.8 (1/2010)

GDP Growth -0.7%

Unemployment 9.5%

Gold $1101/oz

Oil $79/bbl

Prime 3.25%

THE WORLD OF BUSINESS

“While uncertainty remains about the expected pace of recovery, CEOs are more optimistic that conditions will improve.”

- Vistage CEO Confidence Index

THE WORLD OF BUSINESS

THE BUSINESS OF MARKETING

“The reality is that clients want more for less”- Publicis CEO Maurice Levy

“The chief procurement officer has become more important than the chief marketing officer inside some companies”

- Joanne Davis, New York business consultant

“New business has been tough to come by, and dollars are thin, so agencies are saying ‘How do I find a way to stand out?’”

- Aaron Magness, Business Development Manager, Zappos

“Marketers have slashed the fees they pay by 5 to 30%”

Real growth will come in 2011

THE BUSINESS OF MARKETING

OLD MARKETING

Monologue

NEW MARKETING

Dialogue

“Push” “Pull”

1:Mass 1:1 / 1:Community

THE BUSINESS OF MARKETING

OUR INDUSTRY : PAST

Big sea, many fish

OUR INDUSTRY : PRESENT

Big sea, shrinking fish population, several big fish

MARKET SHARE

THE TRADESHOW INDUSTRY

Blended profit of the 56 surveyed exhibit companies between 2002 - 2007: 3%*

* According to the EDPA Economic Survey

THE TRADESHOW INDUSTRY

Our industry is broken and demands reinvention

THE TRADESHOW INDUSTRY

TRADESHOW INDUSTRYVALUE PROPOSITION

THE BILBAO EFFECT - FORBES.com

82% of tourists visited the city solely to see and experience the museum

Over $107 million spent around the city of Bilbao on accommodations, shopping, etc.

Overall economic impact: $147 billion, which is equivalent to 4,415 jobs

CHALLENGES FORCE NEW WAYSOF THINKING AND INNOVATION

OUR INDUSTRY : FUTURE

Big sea, many fish must become codependent and innovate to survive.

FINDING THE BLUE OCEAN

Unlock enterprise sales and value

Founded in 1987 by Jill Hebert with a $20,000 bank loan

Largest WBE (Women’s Business Enterprise) Exhibit Agency in the nation; Top 500 in US

Full service: Creative Concepting, Production, Management

50 associates

Entrepreneur of the Year Finalist (2005, 2006)

WHO MATREX WAS

Commoditization of supply base

Acute pricing and margin pressure

Design is subjective

Upfront creative investment continues to escalate

Buyer sophistication

WHY WE ARE EVOLVING

HOW MATREX IS EVOLVING

FROM TOArchitecture Creating OutcomesTHINKING

FROM TOCreative SolutionsIntegrated offerings that arequantified & guaranteedACTIONS

FROM TOTraditional thinkers Sales based / innovativeSTAFF

FROM TOTraditional designbuilds

Diverse marketing and sales driven products & servicesPRODUCTS

Non-commission

Agency mindset

Incubator for business innovations

Outsource low margin activities

Builder of alliances and codependency

WHO MATREX IS

LIVESCIENCE: Blending art and science

WHO MATREX IS

USP: Performance Guarantee

WHO MATREX IS

CORPORATE MARKETING

New website

CORPORATE MARKETING

New advertising & thought leadership

Event Marketer Magazine Series

Procurement White Paper Exhibit City News WCEO Leadership Issue

NEW BUSINESS LAUNCH

Tradeshow BoothEngagement Activity Post-show eBlast

Event Sponsorship

Booth Attire

Interactive CD

Web traffic: From 2,000 hits/month to 9,000 hits/month

217% increase in pipeline projects

32% increase in pipeline opportunities turned RFIs/design requests

PerformanceScience exhibit at Event Marketing Summit generated nearly 100 engagements - all documented through data capture technology

Invited to participate in 9 significant RFIs/RFPs so far this year, double any previous year in Matrex history

2009 RESULTS: OPPORTUNITIES

ABA’s 2009 “Stevie” Award CompetitionWinner for Best Overall Web Design

CEO Jill Hebert, Finalist for Women In Business

Finalist for Most Innovative Company of the Year 100 (for companies with up to 100 employees)

Named in Event Marketer’s IT List of Top 100 exhibit agencies

DiversityBusiness.com recognized our success and WBENC-certified status by naming us among the top 500 women-owned businesses in the U.S. in 2009

2009 RESULTS: RECOGNITION

WHAT IS THE END-GAME?

UNLOCKING YOUR ENTERPRISEVALUE THROUGH INNOVATION

EBITDA?

VALUATION?

Define the following:

How much risk do you want to take?

How much investment can you afford to make?

What is unique to your organization?

What is your USP?

What is your make or break?

Where can you find the blue ocean?

What are the risks in not changing/evolving?

What is holding you back?

What are the impediments to change?

GETTING THERE

Look underneath the hood

Find your reason for being

Build internal consensus

Mobilize enterprise alignment

Market the sauce

Innovate now

Build codependence

Know the end game

Stay focused

Get lucky

YOUR SECRET SAUCE RECIPE