Co-Op Breakout SessionTuesday, Feb 28, 2017

Welcome & Introductions

Objective

An INTERACTIVE discussion about HOW TO leverage Co-Op to drive revenue & margin GROWTH,

and win new customers.

Agenda

• A Few Contextual slides

• LSA Co-Op Process Guide

• Discussion & Q&A

The Opportunity?

$40-$50B Budget

est. Co-Op Budget from Brands

70% Digital

% of Brands Now Reimbursing For Digital

Ad Products

40% Unusedest. Unclaimed Ad

Budgets

60% NOT Digital

% Co-Op Still Allocated to Traditional Media

Brands Need Help!SMBs Need Help!

Understanding Local MarketingShifting Budgets To Digital

Co-Op- The Untapped Opportunity

What Do We All Want?

• Revenue (& margin) Growth strategies• Especially Digital• Preferably blended with traditional media

• Competitive advantage & differentiation

• Sticky products & services

• Expanded capabilities

• Contained/managed costs

The Challenge?

4 Critical Barriers To Success

• Complexity• Processes, programs, lack of standards

• Competency & Capabilities

• Capacity

• Cost

Co-Op Challenge- Complexity, Competency, Time/Effort, Cost to Scale

Digital Media Company/Digital Reseller Processes

Brand/Manufacturer Local Marketing Processes

Marketing

Fulfillment/Operations Billing/Accounting

ServiceSalesSales Ops

AccountingCompliance & ApprovalCo-Op Mgmt.Marketing

3rd Party Service Providers

Seller-side complexity- up to 6 functional organization and 10-20 Brand touch points

Brand complexity- unique program, 10-20 dealer touch points, 3rd Party Providers

The Solution

LSA Co-Op Business Process Outsourcing (BPO)- People, Process Data & Platform

Digital Media Company/Digital Reseller Processes

Brand/Manufacturer Local Marketing Processes

Revenue & Customer Strategy & Planning

Sales & Marketing Support

Claims, Admin & Accounting

Support

Ad Ops & Fulfillment Support

Marketing

Fulfillment/Operations Billing/Accounting

ServiceSalesSales Ops

AccountingCompliance & ApprovalCo-Op Mgmt.Marketing

3rd Party Service Providers

Service Bureau People, Processes & Platform

LSA Recas Platform & Database(2200 Brand Programs)

LSA Co-Op BPO Playbook-4 Strategic Processes

Marketing

Fulfillment/Operations Billing/Accounting

ServiceSalesSales Ops

Digital Media Company/Digital Reseller Process

Revenue & Customer Strategy & Planning

Sales & Marketing SupportClaims, Admin &

Accounting SupportAd Ops & Fulfillment

Support

1 2 3 4

Joint Strategy, Goals & Plans for Co-Op Success

Enable Sales & Account Teams

Ensure Approvals & Compliance

Support Claim s& Prove Value-add

• Market and Account level Co-Op research & analysis

• Ad Products mapped to Brand Programs

• Offers/Campaigns• Pre-Approval• Leads & Lead Supplement• Sales enablement

• Fulfillment process mapping

• Compliance criteria• Compliance controls

• Claims package production• Direct claiming option• Program Accounting &

support

Service Bureau Account Management Structure

Account Mgmt. Team

Additional Support & Fulfillment Services

Fulfillment Center Delivery Teams

LSA/Recas Manufacturer & BrandProgram Database

LSA/Recas Application

Service Bureau Delivery Processes

Revenue & Customer Strategy & Planning

Sales & Marketing SupportClaims, Admin & Accounting

SupportAd Ops & Fulfillment Support

1 2 3 4

Lead Gen & Sales

Approvals & Compliance

Claims Processing

Client Support &

Admin

Brand Management

Tech & Systems

Account Management(Client facing)

Delivery Management(Internal)

Tech & Integration

Education & TrainingConsulting ServicesCreative Services

People

Platforms

Processes

Client Dedicated Team

Shared Services Teams-“Fulfillment Centers”

Ad Hoc, As Needed Services

Systems & DB To Drive Scale & Efficiency

LSA Co-Op BPO Value Proposition

• We bring the people, processes, data & infrastructure to support Co-Op

• Behind the scenes, supporting you

• We align our incentives & compensationwith your success

LSA Co-Op & BPO Qualifications

• 20+ years operational & platform outsourcing experience

• 20+ years Co-Op sales & processing experience

• Success within all Co-Op media types

• Relationships across the entire Co-Op value chain• Manufacturers, wholesalers/distributors, Agency & Media

• Trusted & independent intermediary

• Leading Co-Op DB & platform- +8,000 brands, +2,200

manufacturers

Your Co-Op Business Partner & Outsourced Service Provider

(The benefits of Co-Op without the investment)