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InnovateRetail was created so that we could help business owners work on their business, not just in their business.

Marketing & AdvertisingConsultingCustomer FeedbackConsumer ResearchMy Name is Daryl Newton, owner of InnovateRetail right here in Phoenix. It started after 2 partners sold their Mattress Firm Franchise right here in Phoenix. We wanted to create a company that could help in working on your business, not in your business. We also wanted to learn more about our customers. Our main area of expertise is:Business ConsultingMarketing & Advertising (which brought me here to this meeting)Customer FeedbackConsumer Research.1

To maximize lifes dividends, the only true investment is people.Who is Daryl NewtonCollegeBusiness OwnerEarly CareerPersonalYou might be wondering why Daryl? What qualifies me to be here. To be honest, I think they had someone really cool but cancelled. So here I am.

My Background is as follows:

Finance & Accounting DegreeController for 5 years (figured out I hated the accounting world Too much attention to detail).Advertising for cable company in Houston, and started small agency.Then worked on Whole side of mattress business with Simmons Company. Opened up Mattress Firm (5/o Management) in 1999. [5/0 Name story].Sold that business back to the corporate company Opened IRG.Biggest client is still Mattress Firm (Franchise and Corporate on non Advertising things)

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OVER 1,000 STORES IN AMERICA150 FRANCHISE STORES OPERATINGSTARTED IN HOUSTON, TEXAS IN 1986 LARGEST MATTRESS RETAILER IN USI WORK WITH 90 STORES IN 7 STATES

A little about Mattress Firm. Most of the people here have probably seen a Mattress Firm (unless you are far North East, or on the West Coast).Over 1,000 stores (150 of them are franchises)Started in 1986 in Housto, TX. Largest Mattress Retailer in the US.I work with over 90 stores in 7 states and 12cities.3

-Dont think about Mattress-In & Out in 5 Days -Shop about 2 Stores

We Have to be in their HeadsMattress CustomersEnough about me, Now lets talk about our customers (From the Mattress Indusrry:

Unlike the auto or Furniture, we arent very sexy.People dont think about us until they have a problem.They are in and out of the market within 5 daysThey shops on average of 2 stores during this process.

SO, WE HAVE to HAVE TOP OF MIND AWARENESS AND/OR BE IN FRONT OF THEM DURING THE BEGINNING OF THIS PERIOD.4

THIS IS PRETTY MUCH WHAT ALL OF US ADVERTISERS ARE TRYING TO DO.

GET THE CUSTOMERS ATTENTIONPROVE WE ARE THE PEOPLE TO SHOPAND MAKE SURE THEY KNOW HOW TO GET TO US.

NO MUCH DIFFERENT THANO OTHER ADVERTISERS.5

WHICHPRODUCT MIXISTHEBEST?

AS ADVERTISERS, WE TALK ABOUT OUR PRODCUT MIX ALL OF THE TIME. DEPENDING ON WHERE WE ARE IN THE MARKET AND OUR MATERITY:

THERE ARE A LOT OF PLACE TO SPEND OUR MONEY, AND A LOT OF EXPERTS TELLING US WHERE.

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THE TALE OF 2 CUSTOMERSDIFFERENT FROM US, THE NEWSPAPER INDUSTRY TRULY HAS THE CHICKEN OR EGG THEORY IN EFFECT. OR AS I CALL IT THE TALE OF 2 CUSTOMERS.

YOU HAVE TO HAVE READERS TO DELIVER YOUR PRODUCTYOU HAVE TO HAVE ADVERTISERS TO MAKE MONEYIF YOU DONT HAVE MONEY, YOU CANT RUN THE PRESSES. IF YOU DONT HAVE READERS, NO ONE WILL GIVE YOU MONEY TO RUN THE PRESSES.

FROM OUR PRESPECTIVE:YOU SPEND A LOT OF TIME RESEARCHING STUFF FOR US THE ADVERTISERSDO YOU INVEST IN THE FUTURE OF YOUR OTHER CUSTOMERS, OR JUST WATCH IT DIE.7

READERSADVERTISERFOR THE MATTRESS INDUSTRY THE PAPER IS IMPORTANT:

BECAUSE WE ARE KIND OF A COMMODITY, WE GET TO DO PRICE AND ITEM TO SHOW VALUE TO OUR CUSTOMERS (AND DUKE IT OUT WITH OUR COMPETITORS

WE ACTUALLY WANT YOU THE PAPER TO GROW CIRCULATION (NO THAT UGLY WORD READERSHIP).

WE BELIEVE THAT IF YOU PUT AS MUCH TIME AND EFFORT INTO GROWING CIRCULATION AS YOU DO FOR DRIVING SALE, I BET YOU GUYS WOULD COME UP WITH SOMETHING COOL.

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NEED TO INVEST IN THE FUTURE OF YOUR READERS, NOT JUST CONVERT TO LATEST INTERNET FAD.NEWSPAPERS TODAYALL WE ARE ASKING IS TO BUILD VALUE TO OTHER CUSTOMERS SO WE CAN SPEND MORE.

REMEMBER WE DONT ALL HAVE THE SAME INTEREST IN THE WORLD WIDE WEB. SPEAKING FOR THE MATTRESS INDUSTRY, WE HAVENT COMPLETELY FIGURED OUT WHERE WE FIT IN TO THE INTERNET.

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INSERTSSUNDAY IS STILL THE MARKET PLACE.CUSTOMERS BRING THE INSERTS INTO STOREFIGURE OUT HOW TO OWN THE PRINT & DISTR.

CONSISTENCY IS THE TICKETWE LOVE INSERTS MORE MULTIPLE REASON:

IT ALLOWS US TO STAND OUT IN OUR WAY THRU SIZE, WEIGHT, ECT.SUNDAY IS STILL THE MARKET PLACE.A BIG ONE FOR US THEY BRING THESE INTO THE STORE. UNLIKE THE ROP.HAD A DISCUSSION JUST YESTERDAY I THINK IT WORKS, BUT OUR PEOPLE DONT SEE IT, SO THEY DONT THINK IT DOES.

ONE THING THAT HAS WORKED FOR US IS TO START HAVING THE PAPERS THINK NOT JUST ABOUT MARGIN %, BUT MARGIN DOLLARS. PRINT AND INSERT GIVE YOU ALL THE MONEY.

SPADEA PRICING. DO YOU WANT TO DO THESE????10

TMCSHOW DOES YOUR CUSTOMERS KNOW OF TMCMINIMIZING THE TMC CUSTOMER BASE.DESIGN AND CONTENT. WHO DECIDES?HOW DO WE CROSS THRESHOLD?

TMCS ARE A HUGE PART OF OUR BUSINESS:

IT HAS BEEN HUGE WHEN WE HAVE TO GROW BECAUSE MOST TMCS ARE BIGGER THAN THE PAPERS.QUESTIONS WE ALWAYS ASK, WHICH ARENT ALWAYS ANSWERED BY THE PAPERS VERY WELL:HOW DOES THE CUSTOMERS KNOW WHAT IS THROWN IN THEIR YARD OR IN THEIR MAILBOX?WHAT IS YOUR PLAN TO MINIMIZE THE TMC BASE. REMEMBER MY EARLIER CONVERSATION.TMCS ARE ALL OVER THE BOARD FROM LAYOUT, CONTENT, AND DISTRIBUTION.DO YOU KNOW IF YOUR GIVING THESE PEOPLE A PRODUCT THEY WANT? ARE YOU TRYING TO CONVERT THEM TO READERS? IF SO, BE COMMITTED TO IT.

HOW ARE WE GETTING ACROSS THE THRESHOLD? I DONT CARE WHERE IN THE YARD YOU PUT IT. I CARE THAT WE GET THRU THE DOOR.

INVEST IN YOUR CUSTOMER BASE HERE ALSO.11

developprogram present

THE TRUE WAY TO MAINTAIN A PROGRAM IS TO GET BUYIN FROM THE PEOPLE WITH BOOTS ON THE GROUND. MOST OF THE TIME, WE DONT EVEN LET THEM KNOW THE PLAN, OR CLAIM CREDIT FOR IT.

STORY ABOUT SELLING THE ADVERTISING TO INCREASE THE EXCITEMENT/CONFIDENECE.

MOST OF YOUR GUYS DO A GOOD JOB OF DEVELOPING A PROGRAM, BUT A TERRIBLE JOB GETTING IN FRONT OF THE PEOPLE THAT ARE GOING TO SEE THE RESULTS. 12

MUST CULTIVATEHEALTHYPARTNERSHIPS

ONE WAY WE GO THRU THE ADVERTISING PROCESS IS THE CULTIVATE A RELATIONSHIP. IT CANT BE A ONE WAY RELATIONSHIP THEY NEVER LAST.

IF WE HAVE A GOOD RELATIONSHIP, AND A LION SHARE OF THE BUDGET WITH YOU, THEN YOU WILL BE THE FIRST GUY THEY CALL TO JUICE THE WEEKEND.

THIS IS WHAT I CAN DO (BE GENUINE ABOUT IT), AND IF YOU CANT LETS BE FRIENDS. I HATE THE GUYS THAT GO THRU THE 5 STEPS OF NEGOTIATION. THERE ARE TOO MANY AVENUES.

MOST OWNERS YOU DEAL WITH LOVE ADVERTISING, BUT DONT HAVE THE TIME FOR IT. THEY WILL TREAT THE PEOPLE WILL TAKE CARE OF THEM A LOT BETTER.

THIS IS HOW WE TELL CONSUMERS WHO WE ARE.13

INNOVATERETAIL.COM

THANK YOUTHANKS FOR HAVING ME, AND PLEASE CLAP SO THAT YOU CAN WAKE UP THE GUY NEXT TO YOU.14