the carlson group - capabilities

© 2012 The Carlson Group, Inc. All Rights Reserved.

Capabilities Presentation2012

As a strategic partner, The Carlson Group incubates, builds and sustains smart custom programs that deliver value across consumer retail experiences.

2 3

Scope Services

Retail EnvironmentsCustom Fixture SolutionsShop-in-ShopPOPGraphics & Signage

DISCOVERYAssessmentProgram Strategy

DEVELOPMENTRetail MessagingDesignEngineeringPrototyping

EXECUTIONProgram PlanningManufacturingInstallationFulfillment

EVALUATIONTestingEvolution Planning

Our team passionately supports some of the world’s top brands.

We listen and collaborate; we care for and strengthen the brand image.

Together, we make something fresh and unique; we bring the brand experience to the consumer.

4 5

› A Strategic Approach› It All Comes Down To You...› Success Stories› Appendix

6 7

It's complicated.

Think of us as choreographers, in the middle of it all, making it all work. Coordinating a world of moving parts - store planning, visual merchandising, procurement, store construction, marketing - we ensure that the outcome, the solution, is compelling and beautiful, in sync and profitable.

88

› A Strategic Approach

9

How we think, prepare, and anticipate…delivers lasting value.

We start our work at precisely the stage you happen to be and combine this thinking with our broad base of industry smarts to accomplish the task at hand: More revenue for your brand.

10


11

We take a comprehensive view.

It's a strategic approach rooted in Total Program Value. We think anew and map out the circle - trends, consumers, environment, planning, procurement, investment and return.

You need to innovate to succeed. To build on success, it's important to understand what it is that delivers results in the market.

12


13

We don't do everything.

We only do the things that matter most. Work and partner with the best of the best. Know what you need — consumer strategy, communications strategy, digital media and so forth. Whatever you need, we can tap into our extensive network of experts and deliver. You get exactly the expertise you need. Easy, seamless, integrated.

14


15

Total Program Value

If you take away only one thing, consider this: our strategic approach ensures that your investment delivers the greatest possible value to your brand. Here’s why:

› The Foundation ~ Programs built on knowledge — of consumers, markets and your brand.

› The Legacy Assets ~ We’ll look at everything you’ve invested in to date and we’ll make the most of what works and has value.

› The Long View ~ Being strategic means looking out over the horizon and making decisions that are right for your future.

› The Outside Perspective ~ We might ask you to step outside your comfort zone. It's our job to challenge assumptions and we will. We promise we'll be nice about it. It's also our job to be thought leaders in order to support your brand and bring you distinct competitive advantages.

16


17


18 19

What this means for you:

The tribal knowledge that you have of your brand and its trajectory, and your insider, in-house perspective—that's the keystone for everything we do.

All that good, juicy stuff you’ve come to know combined with our experience, retail market knowledge and know-how means you can expect returns and results uniquely suited to your brand.

Both market trends and brand initiatives have implications for your approach to retail.

Make sure you’re set up to succeed as you move in new directions, and that successful innovations can be deployed throughout all of your retail outlets.

2020202020202020202020202000002020020002020202020000020202020202020202020002002022002020200002002 2121212212121212121212121212121212121212121212121212121221222122212122122212122122112121212221222

› ››››› › › › ››››› ›› ›››› ItItItItItItItItItItItItItItItIttItItItItttItItIttItItItItItItItItItIttIIttttt A A AA A A A A A AAAAAA AAA AA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAlllllllllllllllllllllllllllllllllllllllllllllllllllll C C C C C CC C C C CC C CC CCCCC C C C CCCCCCCCCCCCCCCCCCCComomomomomomomomomomomomomomomomomomomomomomomomomomomommomomomomoommommmmmmmomommesesesesesesesesesesesesesesseseseseseseesesesesesesesesesseseeseesessssseseseeeesessesseseeseseeeessessess D DDD DDD DD D D D D DDDD D DDDDDD DDDDDDDDDDDDowowowowowowowowowowowowowowowwwowwowowowwwowowoowowowoowowowwowwwowwwowowwwowwwwwnnnn nnnn nnnnnnnnnnnnnnnnnnnnnnnnnnnnn nnnn ToToToToToToToToToToToToToToToToToToToToToToToToToToToToToToTooooToTTToToToToTooooo YY Y Y Y Y Y Y YYY Y Y Y Y YYYYY YYYYYYYYYYYYYYYYYY YYYYYYYYououououououououououououououuououuououoouuuuououoououoououuouuuooouoououoouuu......................... ...........

Now, more than ever, analog and digital retail are being integrated in the store environment.

MARKET TREND

ENGAGEMENT › Digital mediums can amplify consumer engagement and it’s essential to understand how digital can fit seamlessly into the brand experience.

TECHNOLOGY › Get to know your options for technology. How do they compare in all areas of cost, from purchase and maintenance through content updates?

RETROFIT › If your evaluation reveals that these mediums are effective, learn know how they can best be retrofitted into older programs.

IMAGE : Intel Digital Signage Prototype

22 2323232323232333

› It All Comes Down To You...

The pace of changecontinues to accelerate.Retail can’t sit still.

MARKET TREND

ANTICIPATE › Know where your brand is going. Your retail programs should be designed to anticipate change.

FLEXIBILITY › Consider designs that are built to accommodate frequent updates, from fresh messaging to new product initiatives, to the ability to add program elements seamlessly.

PROTOTYPES › Prototype evaluation – especially in real world environments – gives you unmatched visibility and insight into a program’s effectiveness. Use those insights to continue the cycle of evolution.

IMAGE : Ducati Singapore via Pro-Italia

24 25


An explosion of experiential retail is adding excitement to the industry.

ENTERTAINING › Shopping at its best is entertainment. Physical retail enriches the experience by offering personal contact, hands-on engagement with products and the excitement of a brand’s edited point of view about what’s important.

PERSONALIZED › Brands and retailers who are creative in using the wealth of data available to better understand their consumers can offer them exactly what they want, and need, from the store experience (sometimes before those consumers know it themselves). The most personal experiences where the individual consumer is understood, remembered, and anticipated is the ideal in any channel, from value to prestige.

OMNICHANNEL › The multichannel retailer has the opportunity, as well as the responsibility, of using technology in ways that add to the retail experience. Technology is both an integral part of today’s store and a complementary offering to physical retail. In store, consumers expect a seamless integration of technology that goes beyond cost-of-entry, providing a deeper, content-rich and more personalized experience.

IMAGE : Crown Fountain - Millennium Park, Chicago.

MARKET TREND

26 2222222222272727727272727722222222777222222227277722222222272777727272222227777277227277772222222722222222772777727222277772772227277727777222272222227777



28 29

Rethinking the shared service footwear deck for Dick'sSporting Goods involved a complete strategic evaluation of the current fixtures, floor plan, and signage package.

Key insights allowed the client to see beyond operational challenges and ultimately deliver a shopping experience which exceeded customer expectations.

DICK’S SPORTING GOODSFOOTWEAR DECK

Strategic Partner › HUENAs strategic partner, Huen’s scope of work for the project included the following: Consumer Research and Strategy, Retail Assessment and Strategy, Communication Strategy, Merchandising Direction and Creative Direction.

3030330303333030303030303030303030303030303003030303303303030000300030030300000330030000300033330003003003000333030303003303030300033303030033330303030303003330030003303303330303333003000030330 331333311333333133

›››››››› › SuSSuSSSSSSSSSSSSuSuSSSuSuSuSuSSSuSuSuSuSuuSuSuSuSuuuSuuSuccccccccccccccccccccccccccccccccccceesesseseseseseseesese sssss s s SSSSStStSStSStStSttStStSSStStSSSStSStStSSSSS orororororoororrorrrorriiiiiieieieeieieeeieieeeeeesssssss

CCCCLLIEENNNNNTTTTT RRREENNDDDDDDDEEERRRRRINNGG

DICK’S SPORTING GOODSFOOTWEAR DECK DISCOVERY

BRAND INTERVIEWRETAIL AUDIT

ASSESSMENTPROGRAM STRATEGY

DIRECTIVES

33232323233232332232232323232323232322222222222222 3333333333333333333333333333333333333333333333333333333333333333333333333333333333

› Success Stories

LLLLAAAACCCCKKKK OOOOF EXXXXXCCCCIITTEMMMEEENNNNTTTTTT &&&&&& TTTTHHHHEEEEEEEEAAAATTTTEEEEEEER

UUUNNCCCLLLLLLLLEEEEEEAAAAAARRRRRRRR NAAAVIGGGGAAAAATTTTTIIIIOOOOONNNNN &&&&&& IIIIIMMMMMMPPPPPPAAAAAAAIIIIIRRRRRREEEEDDD SSSSSIIIIGGGGHHHHHHTTTTTLLLLLIIIIINNNNNEEEEEEES

LLAAACCCKKK OOOFFF SSEEEAAATTIINNNGGG

DICK’S SPORTING GOODSFOOTWEAR DECK DISCOVERY

BRAND INTERVIEWRETAIL AUDIT

ASSESSMENTPROGRAM STRATEGY

DIRECTIVES

33333434343434333333334334443433434343443443434334344344343343434434433444433343434434444334343443443343443344334433333 333535553

› Success Stories

DICK’S SPORTING GOODSFOOTWEAR DECK DEVELOPMENT

RETAIL MESSAGINGCONCEPTUAL DESIGN

DESIGN INTENTENGINEERINGPROTOTYPING

3633333363633666666366636336666333333666666663663336666666663636636333 33333337377777777777773337333737337373773737373737377737337773777733333377777773337377333373333373777337

› Success Stories

DICK’S SPORTING GOODSFOOTWEAR DECK EXECUTION

PROGRAM PLANNINGMANUFACTURING

INSTALLATIONWAREHOUSING

FULFILLMENT

3838383888888888888383833383888388838838838888888838888 9399999999399999999939999999999999999999999939999999993999999939999999999993999999999999999999999

› Success Stories

DICK’S SPORTING GOODSFOOTWEAR DECK EVALUATION

TESTINGDATA ANALYSIS

INTERPRETATIONEVOLUTION PLANNING

40404040404040000004000004000004404404444444444444444444444440444444440444444040044440444440044 141444141441444411444441444414444414444444414444144441444444414144141444444444441444141444414441111144144144444441114141444144444414444444

› Success Stories

Developed a footwear end cap program meeting Academy’s in-store selling requirements while amplifying each brands DNA to create a unique selling space

ACADEMY SPORTS + OUTDOORS ENDCAP PROGRAM

424242424242424442424444224222444444 44443443344344444443444343433

›› ›››› › SSSSuSuSuSuSuSuSuSuSuSuSuSuSSSSSSSuS ccccccccccccccccccccccccccccccceseeseseseesesesessesesseseseesesssssssss sss sssssss ss StStStStStStSttStSSSS orororororororrrieeeeeeeieieieeeieei ssssssssssss

177 X 4.5mm CLEAR ACRYLIC ROUTER CUT AS SHOWN ----1900 A SEE BOM SEE BOM ----1903 B SEE BOM SEE BOM ----1911 B SEE BOM SEE BOM ----1914 B SEE BOM SEE BOM ----1917 A SEE BOM SEE BOM ----1918 A SEE BOM SEE BOM ----

A101-2911-0102 STEEL BLACK OXIDE HEX SOCKET BUA110-1808-0001 STEEL ZINC PHILLIPS PAN H

36.5

119

82.5

58.5

6

1

8

9

2

ACADEMY SPORTS + OUTDOORSENDCAP PROGRAM DEVELOPMENT



44 454444555

› Success Stories

Facilitated all project communications including design reviews and sell-in between Academy and the

participating brand partners.

Under Armour Adidas Nike Wolverine Skechers Asics/Puma Lifestyle Kids Reebok New Balance

ACADEMY SPORTS + OUTDOORSENDCAP PROGRAM EXECUTION



FULFILLMENT

46 47

› Success Stories

ACADEMY SPORTS + OUTDOORSENDCAP PROGRAM EXECUTION



FULFILLMENT

4444448888888444448884448888444888884444488884444488884488888444888884444448888884444444844888888888444888888844444444888888888448888888888444844488888844888888844444888888888844444888888884444448888888888 49494949949999994949949949494999949999949949999499999999999999499999

› Success Stories

Program designed and value engineered formaximum compact build, reducing packagingmaterials and shipping costs

COLUMBIA SPORTSWEAR FIXTURE PROGRAM

50 555151515111111115111111111111111115111111111111111111111111115155111

› Success Stories

COLUMBIA SPORTSWEARFIXTURE PROGRAM DEVELOPMENT



52525255252 535353535355

› Success Stories

COLUMBIA SPORTSWEARFIXTURE PROGRAM EXECUTION



FULFILLMENT

5444 55555555555555555555555555555555555

› Success Stories

Program designed and value engineered for using sustainable materials and maximized common components to leverage higher piece-part quantities throughout the system.

THE NORTH FACE FIXTURE PROGRAM

5565666666 57577575577

›› › SuSSuSuSuSuSuSuSSSSSSuuuuS ccccccccccccccccccc eseeeseeeeess s s s StSSSStSttSttoooorororieieieieiesss

THE NORTH FACE FIXTURE PROGRAM DEVELOPMENT



585858885885855888 5959999999

› Success Stories

THE NORTH FACE FIXTURE PROGRAM EXECUTION



FULFILLMENT

60 616116161

› Success Stories


62 63

Web Site

Locations

Leadership

Memberships

Inception

Incorporation

Structure

Tax ID

Dun & Bradstreet Number / Rating

www.carlsongroupinc.com

USA:HQ: Chicago350 E. 22nd StreetLombard, IL 60148

Contact: Mark Adams, [email protected]

Additional Offices:Portland, ORLos Angeles, CA

CHINA:Shanghai789 Zhaojiabang Road, 10th Floor Unit 3Shanghai Jun Yao International PlazaShanghai, China 200032

Greg Carlson, Principal John Carlson, Principal Mark Adams, Chief Operating OfficerScott Reczek, ControllerBrad Kurz, Creative Director Sabine Liu, Managing Director, ChinaCharles Tracy, Program Services DirectorLaura Dillon, Human Resources Director

Path to Purchase InstituteA.R.E.IDSA

1999

Oregon

S-privately held

93-12652222

17-117-3219 / 1R3

Company Overview

SS-CO

Adidas AmericaAcademy Sports + OutdoorsAshworthAsics AmericaColumbia SportswearDick’s Sporting GoodsDockersEverlastJanSportKeenMountain HardwearNew BalanceNikeNintendoOakleyOnitsuka TigerRedingtonReebokReefSephoraSkechersSonySorelSpeedoSports AuthorityTaylorMade-adidas GolfTevaThe North FaceTimberlandUnder ArmourUrban DecayVans

Clients

SS-CLISS CLI

Recognition

(Left to right)

Top Row:

Timberland Pro Core Fixture ProgramTimberland Kids ClubhouseTimberland Women’s Fixtures

Middle Row:

The North Face Boise, IDThe North Face DSG Wardroberadidas Outlet Program

Bottom Row:

Reef Denim and Tee StackerReef Girls Nesting Table Set

We are passionate about creating memorable retail experiences. Every so often, we are honored to be recognized for that passion. Our work has garnered 17 Design of the Times Awards, 7 POPAI Outstanding Marketing at Retail Awards and special recognition for sustainability and green awareness from ARE.

SS-REC

Recognition

(Left to right)

Top Row:

Asics Tech TowerAsics Kayano POP LaunchAsics Counter Display

Middle Row:

Nike One Counter DisplayTaylor-Made TP Red/Black Ball ToweradidasGolf Tour 360 Program

Bottom Row:

Nike Bauer Hockey Flexlite DisplayNike Pro Fixture H-Rack

SS-REC

Brand InterviewKickoff meeting with project stakeholders to understand brand positioning as well as all challenges and requirements of the project.

Retail AuditPhotographic documentation of current in-store programs to identify trends, best practices and opportunities.

AssessmentSummarize learnings and relate back to project objectives.

Program StrategyDetermine an approach to guide concept development and ensure solutions are in alignment with consumer behavior and the brand.

DirectivesInsights are translated into specific design principles which are adhered to throughout concept development.

It involves aggregating your needs and project parameters while aligning that information with the overall goals of the design. If needed, additional insights are gathered through market audits and competitive brand assessments. Through this process design and merchandising principles are established and reviewed with project stakeholders before concepting begins. These guidelines are the lens through which all concepts are viewed.

DISCOVERY

SSSS-SS-SS-SS-S DISDISDISDIS

Deliverables*

R1Loose sketches enable us to quickly visualize big picture concepts without getting bogged down in details.

› 2D black and white sketches exploring aesthetic direction and functionality

› 2D color elevations exploring color usage, graphic and logo treatments

R23D color renderings of individual fixtures explore materials and merchandising, with sufficient detail to communicate features and functionality.

› 3D color renderings with merchandise

› 3D color shop configurations

› Materials and finishes called-out, physical samples provided

R3Fully rendered 3D environments facilitate internal buy-in for final concepts before proceeding to engineering and pricing.

› Sufficient detail to direct engineering and pricing

› Final material board(s) provided

*scope/deliverables vary by project

Beginning with loose, hand sketched concepts, our design process aims to build consensus throughout development. By focusing on design principles defined in Phase I, concepts are weighed and evaluated according to project objectives. This allows the solution to evolve through a logical progression of ideas, and eliminates subjectivity when choosing a final design direction.

DEVELOPMENT

Conceptual Design

SS-DEV-CD

GlobalDomestic and offshore strategic partners

CapacityUSA : 3M+ square feet

CHINA : 13M+ square feet

Partner AttributesTrade specific…selection based on core competency and expertise

Flexible…ability to fabricate material and components

Performance…qualified and tested to TCG’s performance standards

BenefitsCapacity…allows for blended production and risk mitigation

Buying power…negotiation leverage through multiple supplier sources

Flexibility…not tied to fabrication methods or materials

Speed to market…enabled by a network of suppliers and blended options

Material / Component Disciplines › Wire and Metal

› Wood

› Acrylic

› Glass

› Vacuum Forming

› Injection Molding

› Graphics

› Digital/Interactive

› Textiles

› Recycled

› Found Object

› Sustainable, Green

China OperationsShanghaiLocated at Junyao International Plaza

Operations8 years

Staff Dedicated team focused on QC / Compliance / Logistics

PartnersStrategic relationships with 10 core suppliers

Volume75% of production mix generated in China

EXECUTION

Manufacturing

SS-EXE-MA

Production Viability & Best PracticeConsult extensively with supplier partners during engineering phase to establish best production methods for lowest cost and highest quality of components and assembled parts.

Sample ApprovalProvide material and finish samples for approval and use as control samples during production.

On-site MonitoringOn-site inspection and monitoring throughout production from work in progress fabrication through assembly and pack-out.

First Article ReviewPerform first article inspections on all component parts to assure compliance toengineering specification.

Fit & FunctionConduct tests to verify mating and functionality of parts.

Test Pack-outsConduct test pack-outs to evaluate carton performance and inner pack protection.

Finished Goods AuditConduct inspection after assembly/pack-out to confirm contents, fit/function and ease of assembly.

Program ImmersionComplete extensive review sessions with our program services team using a client facing program playbook to enhance field performance and customer service responsiveness.

TourProvide on-site facility tours for project stakeholders

EXECUTION

Quality Control

SS-EXE-QC

EXECUTION

Program ServicesGlobal program support for implementation of retail executions

Services

Warehousing & Fulfillment

Inventory Management

Site Surveys

Installations

Logistics

Recycling

BenefitsSimplified approach: Efficient consolidation of inventory and services—one stop shop for your direct to store services.

Dedicated staff: Single point of contact for all services.

Customer service: Direct response communication protocols for your programs.

Program immersion, field support: Extensive program review sessions with our team using a client facing program playbook to enhance direct field support and customer service responsiveness.

System Tools: MAS 500 ERP and OnTrack™ proprietary system for order fulfillment, real time inventory management and tracking.

SS-EXE-PS1

EXECUTION

Program Services

Warehousing & FulfillmentUS, Canada, Europe and Brazil locations1,000,000 sq ftISO and Lean certifiedComplete pick and pack servicesStore/shop rollouts

Inventory ManagementERP system managed, real time Customizable reports - usage, rolling, stock status, forecasting and

cycle counting

Site SurveysCustom, specific surveys to fit unique scope of work and multiple locations. CAD drawings available upon request.

InstallationsValue added installation manual Complete install services:

› Build outs

› Fixtures

› Graphics/Signage

› Retrofit Kits

› Electrical

Digital images and sign off sheets provided within 48 hours of install.

LogisticsNorth AmericaParcel – FedEx & UPS serviceLTL Air ride trailersPad wrapLift gate/rampInside deliveryWhite glove POD reporting

International

Global DistributionContainer/freight forwardingAir freight

RecyclingEnd of life fixtures and graphicsObsolete inventory Reporting:

› Recycled vs. landfill

› Weight/% of material diverted from landfills

› Info can be used for sustainability marketing purposes

SS-EXE-PS2

Features › Secure login

› User access levels

› Project snapshot, archives

› On-line document approval, change

Benefits › Centralized information

› Speeds review, approvals

› Streamlines project team communication

› Portability, accessibility

› Less stress

Our proprietary project management system which allows you to manage more projects more efficiently. It facilitates project flow and communications into an effective, efficient format that allows you to schedule, communicate, organize, review and share important project milestones.

SS-PL

Reports › Inventory (program and rep)

› Location order history (by location)

› POD Tracking

› Order status

› Activity (most or least ordered item)

› Backorder

› Distribution

› Transportation

› Allocation/order history (by users)

Features › Secure login

› User access levels

› Easy order entry

› Order history archive

› Reporting

› On-hand inventory

› Backorder

› Critical re-ordering levels (timing)

› Trending (activity orders by item and volume)

Benefits › 24/7 access

› Inventory levels by item/by rep

› Rep selling tools and aids

› Digital image of display with specific information, such as instruction sheets and plan-o-grams

› Real time inventory tracking

Our proprietary order fulfillment and inventory management tool that features order cart entry, shipment tracking, and inventory allocations by region or field rep. It allows field access to instruction sheets, plan-o-grams and other important documents.

SS-SS-SS-SS-SSS-OTOTOTOTOTOO

Prototype Review Book

Features › Check list of all design and visual

merchandising solution objectives

› Material samples and alternatives

› Renderings with merchandise to verify capacity, shop-ability

› Master CAD, engineering drawings to verify fit and function

› Documentation of all program elements

Benefits › Program consistency

› Simplifies project team decision making, approvals

› Eliminates misinterpretation, translation errors

› Detailed documentation of all changes, directives

This provides a unified focus on consumer/shopper objectives and solutions. It shines a pre-production spotlight on potential manufacturing problem areas while providing a place to aggregate all stakeholder perspectives, comments and directives.

SSSS-SS PRBRB

Program Playbook

Features › Color renderings with merchandise

› Main assembly drawings

› Floor plans, shop layouts

› Instruction sheets

› Customer service contact

Benefits › Saves time and money by eliminating

guesswork

› Streamlines communications

› Reduces managerial oversight, workload

› Program training tool for on-boarding new team members

This unifies consistency across formats and channels by providing a single source to reference program drawings, shop layouts, assembly instructions and shipping information.

SS-PP

Sell-in Guide

Features › Description of fixture element solutions,

visual merchandising suggestions

› Iterative floor plans/layouts help retailers visualize program

› SKU assortment per fixture

Benefits › Unified, consistent selling tool for achieving

retailer acceptance

› Helps to push program into more doors

› Helps to secure better retail floor position

This provides a consistent vehicle to sell-in programs to retail partners by putting a focus on retailer needs. It is a visual representation of how solutions work on retail floors and has the added benefit of fostering future program acceptance and expansion.

SS-SIG

Installation Manual

Features › Installation steps and procedures

› Item key and coded packaging descriptions

› Distribution and location plan summaries

› Elevations, floor plans, shop layouts

› Merchandising and set-up details, call outs

› Main assembly engineering

› Instruction sheets

Benefits › Cost efficiencies through standardization

› Minimizes surprises by addressing all potential issues upfront

› Streamlines communication

This establishes global guidelines for achieving consistency in presentation. This manual provides the framework for installtions to run on-time, on-budget and meet all of your expectations.

the carlson group - capabilities

Documents

strategic means

strategic partner

strategic approachhow

strategic approachwe

greatestpossible value

carlson group

knowledge of consumers

itall work