applause media system audio/video release distributor roadshow john williams, product manager
TRANSCRIPT
Applause Media System Audio/Video Release
Distributor Roadshow
John Williams, Product Manager
Agenda
New audio/video release Identifying Applause customers What Applause can do Launch package / new sales
presentation Getting past “no thanks” Promos and pricing Wiring options and order form changes New install process
The Applause Media System is an easy-to-use digital media system that turns your dispensers into an interactive platform, displaying promotions and offering coupons to drive fueling customers inside your store.
What is Applause
New Functionality
The addition of audio and video capabilities has been the most requested feature from customers.
Audio and Video Will...91%
85%
71%
0%
20%
40%
60%
80%
100%
Make Applause morevaluable to me
Make my promotions moreeffective
Make me more likely toupgrade to color
NEW! Support for every major electronic video format.
NEW! Support for every major electronic audio format.
Applause Media with Audio/Video
TV Commercials
Sound effects
Audio prompting
Promotion Voiceovers
True Multimedia Delivery!
New Functionality
Available on YouTube – just search for “Applause Media”
New Video Library! 11 categories covered (20 videos)
Professionally Produced Retailers can include their own
text-based or coupon offers
New Audio Library! Over 200 clips English and Spanish Professional Voice Talent
Updated Graphics Library! Now 70,000+ images QSR and C-Store Focus
Forecourt marketing is becoming more and more critical for all c-store retailers, with increasing competition from other channels.
Traits of good Color/Applause candidates:• Larger c-store with wide in-store merchandise selection• Foodservice offering on site• Car-wash• High volume site• Other “focused” non-fuel profit centers (Coffee program, beer cave, etc.)
Good Applause users have a resource dedicated to marketing.• Time requirement for system is minimal, but it must be properly utilized to get the
desired results
Identifying Applause Customers
Case Study Profile Branded gasoline station in a smaller suburban location
• Branded deli sandwich franchise• Medium sized C-store with “beer cave”• Self-serve Carwash• Average monthly volume +/-110,000 gallons• 6 Encore 500s dispensers with 10.4” color screens
Customer previously made light use of Applause Audio/video deployed on June 29th.
What Applause Can Do….
19% INCREASE IN SALES OVER 3 MONTH AVERAGE
13.8% Instore
11.7% QSR
33.4% Carwash
Increases
$72,603.67
$8,662.50
$13,302.15
$82,336.70
$9,424.00
$12,774.68
$80,680.82
$11,299.00
$12,965.76
$91,088.31
$14,716.50
$14,651.31
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
April May June JULY
Instore Sales Carwash QSR
Three Month Average = $101,349 vs. $120,456
New launch package sent out in early August Launch package contents:
Digital Brochure IT FAQs
Sales Presentation (Power Point) Network Diagram
Customer FAQs Updated Catalog Sheet
Achieving Success with Applause Updated Encore Sales Tool Sheet
Launch Package Overview
Launch Package Overview
The color screens are too expensive• In-store lift of a modest 4% results in a two-year payback (on a dispenser that has a
12-year + life)• Color upgrade price is for both sides (2 fueling positions)• Unlike some less expensive alternatives, Color/Applause is:
Located at the forecourt and able to reach fuel-only customer Built for a very specific industrial use (the screens have to be built to a very high spec to
function for a long period of time in an industrial fueling environment)• Built and tested to an operating temperature range of -30 to 120 degrees• Acrylic coating to protect screen from scratches and weather-related damages
Getting Past “No Thanks”
Attention is focused elsewhere• Majority of fueling customers don’t come inside the store Need a way to convert
them to higher-margin in-store customers• Your in-store customers now can buy the same goods from Walgreens, Dollar
General, CVS, Kroger, Wal Mart, Quizno’s., etc. C-store retailers have the advantage – the customer is already on-site getting fuel – just need a hook to get them inside the store
We’re a small company that doesn’t have the time/resources to manage the system
• Very easy to use system that only requires a few hours attention every 2 to 4 weeks for effective use
• Many resources included with the system that make it easy for any retailer to use effectively (User Portal with pre-made promotions, graphic, audio and video libraries)
Getting Past “No Thanks”
Don’t the pump-top companies give away screens?• Only for sites in top advertising market areas (NYC, Los Angeles, Chicago, etc.)• Only very large volume sites are selected. • No content control – effectively just a billboard that someone else sells advertising on• Not as effective at driving in-store traffic
Content is not specific to the site Ad content for non c-store items (cars, insurance, etc.) Not interactive (no couponing or interaction to engage customer and bring them
inside the store)
Getting Past “No Thanks”
Limited Time Promotions
New Dispenser Purchase w/ 10.4” Screen Upgrade
Free Applause Server(A $3500 Savings)
-Or-
Save $600 Per Dispenser
Offer Ends 10/31/09(SP-3324 for Details)
E500 Mono Upgrades to 10.4” Color Screen
Save $1,875 Per Dispenser(with purchase of EPP retrofit Kit)
Offer Ends 12/1/09(SP-3321 for Details)
10.4” Color Dispensers (Existing non-A/V)
Save $400 Per Dispenser(Full Upgrade to A/V)
Offer Ends 10/31/09($399 list price to 10/31, $799 after
10/31. Order on Color RF Order
Form)
Pricing: Factory Installed Color and Applause
Factory-installed color dispensers (Encore S):• $5,929 (no change to list) – will be shipped audio/video capable• No longer need to separately order a connectivity card ($419 savings
per dispenser)
Applause Media System changes:• List price decreases from $4,394 to $3,500• Long Range Ethernet (LRE) switch no longer included in base package
– will be a required separate purchase for sites using DSL/twisted pair wiring
$399 limited time list pricing per dispenser ($799 after 10/31) Includes:
• New accelerator card (one per dispenser)• New software• Audio/video content libraries• Online training on audio/video functionality, and video frame theme design
Software Re-load and Card Installation (not included) estimated to be approximately 45 minutes to an hour per dispenser
Hi-speed internet required
Pricing: Upgrades for Color Dispensers
Retrofit Promotion
Limited Time Offer• Order an EPP retrofit for an Encore 500 or S series dispenser and add an
audio/video capable color screen retrofit for only $4,995 (list price.) • Standard list price = $6,870 Promotion pricing is less than the cost for a
factory-installed color upgrade!• Unless already installed at the site, Applause must also be purchased to drive
content on the color screens.
Details of Offer:• Refer to promotional flyer SP-3323 for details and ordering instructions.
Save $1,875 per Dispenser! (if ordered by 12/1/09)
- Long Runs (280ft of better)- AC Conduit Installations (usually retrofit)- Requires Separate LRE Switch ($2015)
Category 5 Cable (Cat 5e) - For runs less than 280ft- Must run through non-power conduit (intercom OK)
- No LRE Switch Required (less expensive router/switch can be used)
Separate connectivity card purchase no longer required for either color wiring option ($419 savings per dispenser)
Wiring Options for 10.4” Color
Wiring & Order Form Changes
New Order Form Question: DSL/Twisted Pair or CAT5e Ethernet• Drives correct connectivity board for factory installed dispensers, A/V upgrade
kits, and monochrome to color retrofit kits• Drives required LRE purchase if wiring is DSL/Twisted Pair.
Connectivity card purchase still required for monochrome Applause installations
• Wiring options (DSL/twisted pair vs. CAT5e Ethernet) also available for monochrome installations.
Order Form Addition
A/V upgrade for existing color dispensers added to Color Screen Retrofit order form (EN10.4AVUPGRADE)
New Install Process
Data sheet is no longer needed in advance of install
• Installing technician simply calls 888-800-7498 to obtain the pass code, location ID, and host name (and, for dial-up sites, the access numbers).
• This step is required to register the site and complete the installation (very
important for service going forward)
Please ensure that the installing technician is Applause certified
• Online course available for Applause certification
• To enroll, email [email protected]. Provide technician number and request the Applause technician certification course.
Questions?
Back-Up Detail
Cat 5e Install will also require a router (not included)
For DSL Install, order 1 LRE per 8 dispensers
Wiring thru A/C Conduit requires DSL install and add one Isolation box. (List price $455)
Example Kit Cost:
5 Dispensers with 10.4” Color OptionCat 5e Install DSL Install
Color Option (1 per dispenser) 5,329.00$ 26,645.00$ Color Option (1 per dispenser) 5,329.00$ 26,645.00$ Applause Media System 3,500.00$ 3,500.00$ Applause Media System 3,500.00$ 3,500.00$ Launch Package 2,963.00$ 2,963.00$ Launch Package 2,963.00$ 2,963.00$ Uninterruptible Power Supply 134.00$ 134.00$ LRE Switch 2,015.00$ 2,015.00$
33,242.00$ Uninterruptible Power Supply 134.00$ 134.00$ 35,257.00$
Added Gross Margin 7,978.08$ Added Gross Margin 8,461.68$
Cat 5e Install will also require a router (not included)
For DSL Install, order 1 LRE per 8 dispensers
Wiring thru A/C Conduit requires DSL install and add one Isolation box. (List price $455)
Example Kit Cost:
5 Dispensers with 5.7” MonoCat 5e Install DSL Install
3,500.00$ 3,500.00$ Applause Media System 419.00$ 2,095.00$ Applause Media System 3,500.00$ 3,500.00$ Connectivity Cards 1,346.00$ 1,346.00$ Connectivity Cards 419.00$ 2,095.00$ Set-Up Kit 134.00$ 134.00$ Set-Up Kit 1,346.00$ 1,346.00$ Uninterruptible Power Supply 6,941.00$ LRE Switch 2,015.00$ 2,015.00$
Uninterruptible Power Supply 134.00$ 134.00$ 8,956.00$
Added Gross Margin 1,665.84$ Added Gross Margin 2,149.44$