CONCEPT OVERVIEW SOCIAL COMMERCE NETWORK

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1 Introduction We believe that for many organisations conventional social media platforms fail to deliver on the promise of enhanced customer engagement. The key beneficiaries of your social media marketing spending are Digital Agencies and the Social Media companies not you or your customers. For a more thorough explanation of the mechanisms at play and their effect please see In the meantime we believe that Games Workshop has a fantastic opportunity to deploy its own Niche Social Network and turn this into significant bottom line impact by integrating Social Activity, ecommerce and Store Infrastructure to create a highly compelling focus for the online Warhammer Community. We call this a Social Commerce Network All of the information and functions presented herein are conceptual and have been created for the express purpose of illustrating what is possible for in a Niche Social Network for Games Workshop.

2 CONCEPT OVERVIEW SOCIAL COMMERCE NETWORK

3 Objectives This presentation will provide a flavour of how the Warhammer Community might look, feel and operate to deliver the following benefits: An enhanced online environment for Warhammer enthusiast A shorter path between excitement and purchase A share in secondary market sales of Games Workshop products Customer data - deep insight into customer desires and sales potential New customer acquisition driven by member invitations to peers Cost effective mass communication tool A powerful toolkit for Store Managers to drive store revenue and footfall

4 Incremental Profit Incremental performance has been modelled based on Games Workshop published financial information and the following assumptions: Advertising revenue rates based on average Linkedin (non premium) and Facebook page impression advertising. Incremental sales performance due to enhanced capabilities: YEAR 2 YEAR 2 YEAR 3 Promotional Activity 1.0% 1.1% 1.2% Social Commerce 1.0% 1.2% 1.3% 2nd Market Share All revenues are factored to reflect that network membership will start low but grow to a stable growth level of approximately 150K members by the end of Year 1

5 Incremental Profit YEAR 1 YEAR 2 YEAR 3 Thousands Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ad & Sponsorship Advertising Sponsorship Total Ad & Spons Incremental Margin Enhanced Promotion Social Commerce Marketplace Commission Total Inc Margin Combined Total ,210

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7 Member Profiles Members create a profile which includes details of: othe Games Workshop Store that they are most associated with (this becomes their affiliated store very important) othe Races and Armies that they have and the elements that they possess opre-authorised payment methods such as credit card or PayPal details

8 Member Races & Armies Gap Members upload information about what Races and Armies they have. This facilitates a calculation based on what they don t yet have but might need to round out the tactical capabilities of their own Army in terms of e.g Attack, Defence, Magic, Mobility etc Store managers may provide comments & recommendations on how the member might improve their Army Closing the gap on opponents will drive purchases

9 Friends Members gather friends from both within the community and can also invite new members to join by or from other social networks such as Facebook and Twitter Profiles include badges of honour which are attained through activity such as numbers of posts, completion of armies, advice and support offered to other members incentivising active contributions

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11 The Social Feed Page The Social Feed Page is the main interface for members where they can post conversation threads and media content such as photos and video Real-time social interaction within the Games Workshop themed environment (as opposed to a Facebook Wall environment) Menus and drop-downs lead to other areas of the site

12 The Social Feed Page The Notification bar alerts members to: oevents that they might be interested in oposts in threads that they are active in oprivate messages from other members onews from Games Workshop Stores that the are associated with or announcements that are relevant to their Armies

13 The Social Feed Page Members may organise their own private events such as Battle Nights - inviting friends only or other members affiliated with their store. The event may be open for a restricted number of people and close when the number is reached. The invitation may provide details of how to get to the venue and use Smartphone as a navigation device.

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15 Advertising & Sponsorship Highly targeted advertising and sponsorship opportunities for Games Workshop partners and complimentary product and service providers. Based on 5 banner and video advertising slots we estimate that the value of advertising in Year 1 should be approximately 128K p.a. (based on Linkedin and Facebook average rates)

16 Driving Revenue - Marketplace ebay has current 98,049 listings for Warhammer with sets priced at up to The Marketplace facilitates Games Workshops participation in this revenue through listing fees or commission payments. Current ebay final value fees are 10% of the final selling value of the item. A Warhammer market place would be a much more logical and attractive place to be for buyers and sellers.

17 Strike While the Iron is Hot Contextual text sensing means that member recommendations can be checked against ecommerce and Marketplace databases. Where a member mentions an available item a link is created. Mousing over this link causes a pop up link offering the option to make a oneclick-buy from the online store or the Marketplace. Alternatively the item can be added to a Wishlist Christmas & Birthday gifts. One-Click-Buy technology is Patented in the US by Amazon but not the EU. One click purchasing has demonstrated increased purchasing responses of up to 20 times. We assume much less than this in our model.

18 New Customer Acquisition Incentivise members to invite their friends to join the Warhammer Community by offering redeemable rewards. Invites can be automatically distributed by and into other Social Media channels. This means that conventional social media is a source of new members rather than ambiguous likes and shares

19 For the Store Manager By affiliating members to a Store typically their local Store (in this case the Edinburgh Store) the manager now has a powerful data driven toolkit to engage customers and drive Store performance. The Store manager will know: ohow many customers are affiliated to the Store oa breakdown of what Races and Armies they have othe total value of what they do not have yet othe total value and drill down into members Wishlists

20 For the Store Manager Review the breakdown of Races and Armies by each of the Warhammer product lines. This will allow the Store Manager to make informed decisions on what local Events to run, what products to push and what the value of the potential sales opportunity is at any given time. Drill down into this data to facilitate individual member recommendations.

21 For the Store Manager Store managers can use the system as a method of communicating with the customer base on an individual, group or public basis. ocreate an Event applicable to a specific Race or Army omake recommendations to individuals or owners of specific Armies osend out notifications and follow ups otrack responses and take appropriate actions

22 Summary A Niche Social Network for the Warhammer Community that leverages ecommerce and Store infrastructure to generate bottom line impact.

23 Summary Drive direct revenue by linking Social conversation to ecommerce & Marketplace (secondary market) sales. Opportunity to oneclick-buy when the propensity to purchase is highest.

24 Summary Acquire new members by incentivised invites through conventional social media channels

25 Summary Powerful data based tools for Store Managers to drive footfall, events, customer engagement & sales

26 Summary Drive additional advertising and sponsorship revenue

27 Next Steps We would very much like to meet with the Games Workshop Team to present this idea in more detail and to collect your feedback. PLANYS CLOUD LIMITED Carnegie Conference Centre, Halbeath Road Dunfermline, Fife KY11 8DY Joe Henry Mobile: +44 (0)