Franchise Integrated Point-of-Purchase

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1 Prospectus Franchise Integrated Point-of-Purchase Focused Focused Market Sizing Opportunities, Challenges, & Requirements Awareness, Preferences, & Price Sensitivity Headquarters 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts Europe Sceptre House, 7-9 Castle Street Luton, Bedfordshire, United Kingdom LU1 3AJ Asia Hiroo Office Building Hiroo Shibuya-ku Tokyo Japan

2 Introduction Point-of-Purchase (or POP) advertising is becoming an increasingly important part of the advertising mix because it impacts purchase decision-making at the most immediate point. POP has become one of the primary applications for wide format digital printing because companies have found regionally customized signage to be more effective than mass-produced, one-message-fits-all signage. POP advertising has grown in size to $30+ billion on global revenues and approximately $17 billion in the United States Many companies now use print service providers to produce Point-of-Purchase Advertising Institute wide format POP graphics. Companies with many locations can spend hundreds of thousands of dollars on producing and distributing point-of-purchase materials. Some companies have attempted to install expensive digital displays, only to recognize the challenge of producing compelling content with local impact. There is a better way. As wide format printing systems become less expensive and easier to use with new software and media feeding options, they enable companies to employ a more cost-effective POP production process called Franchise Integrated Point-of-Purchase (FIPOP). Figure 1 - Traditional POP Printing vs. FIPoP Print & Distribute FIPoP/ Distribute-and-Print Centrally created & printed Centrally created Shipped to Regional distributors Regionally tailored Locally printed Delivered to locations What merely looks like distributed printing is actually much more than that because this about more than the number of graphics produced it is also about tailoring advertising messages and imagery for higher impact at that critical purchase point. Despite the fact that the technology has been developed and market requirement is clear, the implementation of FIPOP systems based on wide format printers is relatively rare. InfoTrends/CAP Ventures is launching this study to determine the barriers and market requirements for new FIPOP digital printing systems.

3 The Structure of the POP Market Today There are three major production methods that are undergoing change dynamics within the wide format POP market: there is the centrally- printed model versus the locally-printed model, there is the analog print model versus digital print model, and there is the in-house production model versus the outsourced production model. All of these production methods are being modified as advertisers and brand managers attempt to increase the impact of point-of-purchase graphics. Figure 2 - POP Market Dynamics Digital Analog Distributed & Printed More Timely More Regionally appropriate Reduce costs and waste Centrally Produced Outsourced In-house

4 Critical Questions Answered as Part of this Study What is the potential size of the POP signage market by key segments? What portion is eligible for FIPOP? Who are the decision-makers and potential buyers of FIPOP systems? Where does POP content and printing come from? Where are the pain points in today s POP production and distribution processes? Are local stores and regional centers ready to produce POP? What are the cost thresholds for FIPOP adoption? What are the typical size requirements? Is there any tie-in with inventory systems? What are the different business and production models? Which industries and companies are more/less likely to adopt FIPOP? What are the needs for versioning & proofing? What are the typical turnaround time requirements for POP jobs? Can OEMs go directly with a FIPOP model? What are the barriers to FIPOP adoption? What role can the wide format digital print channel play in FIPOP implementation and management? What is the possible role of brand managers? Store managers? Ad agencies? Print service providers? Who Should Subscribe? Wide format printer manufacturers Wide format supplies manufacturers Finishing and display vendors Wide format system and supplies distributors Major print service providers

5 Market Research This study will use a combination of secondary and primary research to determine the barriers and market requirements for new FIPoP digital printing systems. Secondary Research InfoTrends/CAP Ventures has conducted extensive research in the wide format digital printing, print-for-pay, and point-ofpurchase graphics production markets. Relevant research reports and forecasts will be leveraged as part of this study. We will also thoroughly examine existing market information from a variety of sources including: Government and industry association data and published reports Competitive Web sites, collaterals, and press releases Primary Research In-depth Interviews with franchise companies (15) InfoTrends/CAP Ventures will interview franchise companies to understand market opportunities, challenges, and requirements for POP graphics. These structured interviews will cover a set of vertical markets from fast food restaurants to mass merchandisers. Through these interviews, we will have the ability to suggest the most attractive target markets for FIPoP based on POP graphics production volume, workflows, cost elements, and thresholds for new process acceptance. In-depth interviews with brand managers and consumer packaged good vendors (15) InfoTrends/CAP Ventures will conduct a series of 15 in-depth interviews with brand managers and consumer packaged goods vendors. The goal of this aspect of the work is to determine the sensitivity and requirement for adherence to common production methods for POP graphics related to brand messaging. Interviews with major print service providers and franchises (8) The role of print service providers could be an important one in the future adoption of franchise integrated POP graphics for those establishments that can t accommodate the production of POP materials in-house. These interviews will help to establish an understanding about the existing POP production and workflow process from order to delivery. These interviews will also help us identify the primary purchase decision-makers for POP graphics. Interviews with advertising agencies (5) Ad agencies are another important piece of the existing POP production and purchasing process. By interviewing ad agencies, we hope to determine the role they could play in FIPOP by determining their likelihood to adopt different production processes and their need for control over different elements of design and production. Structured surveys with potential adopters (150) Following the in-depth interviews, InfoTrends/CAP Ventures will conduct a structured survey with approximately 150 potential adopters of FIPoP. This research will be essential in determining awareness, preferences, price sensitivity, product requirements, and other factors influencing the decision-making process. As part of the research process, InfoTrends/CAP Ventures will gather and purchase lists, develop and edit the questionnaire, conduct the programming, review and tabulate the data, and chart the results. We expect that clients and subscribers to this study will work closely with us to finalize the survey guides and questionnaires. We also plan on providing the respondents with an incentive for their participation to improve response rates.

6 Analysis and Project Deliverables There will be extensive analysis of the desk research, personal interviews, and structured survey to develop a comprehensive understanding of the opportunities and issues associated with FIPoP. Clients will receive a combination of reports, presentation materials, and research data for senior management, product managers and planners, and sales and marketing executives. The material will include: An executive summary that addresses key issues, findings, and overall recommendations A detailed written report with text, charts, and graphs addressing the objectives of the study A set of presentation-style overheads for internal communication of the research results A detailed cost model/spreadsheet for existing and new processes (to use as a sales tool) Specific recommendations on items such as required investment, system configurations, and sales strategies A 2-hour teleconference presentation on the general findings and recommendations Project Schedule InfoTrends/CAP Ventures intends to start this project in January Based on the following schedule, the project will be completed with materials distributed by the second quarter of Throughout the project, InfoTrends/CAP Ventures will issue regular updates on the status of the project. Milestone Desk research Personnel interviews Structured surveys Data analysis and report development Report Delivery Completion January January February March April Project Fees & Terms For clients that sign up before December 30th, the participation fee is $12,995. Clients that sign up early can also provide input and review the interview guides. After December 30th, the price of the study is $14,995. A personnel presentation is available for an additional $2,000 plus travel expenses. Half the cost of the report will be invoiced upon subscription, and the other half will be invoiced upon project delivery.

7 Terms and Conditions Liability for Advice Although reasonable efforts will be made by InfoTrends/CAP Ventures to ensure the completeness and accuracy of the information contained in written and oral reports in connection with the proposed study, no liability can be accepted by InfoTrends/CAP Ventures for the results of any actions taken by the Client in connection with such information, opinions, or advice. Copyrights InfoTrends/CAP Ventures retains all Copyrights. Reproduction of any material can be made only with the written consent of InfoTrends/CAP Ventures. Confidentiality InfoTrends/CAP Ventures will use its best efforts to ensure that any confidential information obtained about the Client and its business during the course of the proposed study is not, unless agreed otherwise in advance, disclosed to any third-party without the prior written permission of the Client. InfoTrends/CAP Ventures retains the right to reuse any nonproprietary information as part of its ongoing analysis of the document and content solution market. Timely Delivery InfoTrends/CAP Ventures will take all reasonable steps to ensure that the time scales called for by the proposed study are met in accordance with the agreed-upon schedule, but no liability can be accepted for the consequences of delays, howsoever caused. Terms Half the cost of the report will be invoiced upon subscription, and the other half will be invoiced upon project delivery.

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