4. A. INTRO/EXECUTIVE SUMMARY
1. Business Summary
Electrify is a brand engagement agency, for the new era of „experience brands‟. For brands
that know that how they behave, is even more important than what they say.
By leveraging offline 'live brand experiences' and events online, through social media
content and engagement - we generate real world „social currency‟, personal
recommendations, and maximum reach.
We are accountability and ROI driven, always measuring the tangible business impact of
what we do.
6. • Reputable, highly competent and widely recognised senior management team.
• CEO, ShazSmilansky is a world renowned author of book „Experiential Marketing a practical
guide to interactive brand experiences‟, who also co-developed a Master‟s degree at London
Metropolitan University: Digital Meets Experiential.
• Agency has proprietary IP processes (BETTER brainstorm, and SETMESSAGE planning
systems amongst others) relating to creative idea generation, strategic planning, campaign
execution and evaluation. These remove emphasis on talent (and therefore keeps operation low
risk and highly scalable), as clients „buy into‟ agency methodologies - rather than just individuals
within client service team. Thus negating key common downsides to a „people business‟.
• Branded engagement, experiences and content are incredibly high-growth and topical focuses
for brands within their marketing mix, and play increasingly key roles in the success of brands‟
social media and mobile programs.
• The agency pitch team regularly win business against rival „experiential agencies‟ who have
billings in excess of £10m p/a.
• Blue-chip client roster already exists, opportunities to grow those accounts substantially, is
enormous.
• Agency has implemented systems and processes, as well as agency wide compliance of a
A. INTRO/EXECUTIVE SUMMARY
3. Pros of the Investment/Reasons to Invest
7. A. INTRO/EXECUTIVE SUMMARY
• Long sales cycles required to sell to senior decision makers in blue-chip brands, often sales
cycles can span 2-6 months, impacting cashflow.
• Clients often leaving their roles (moving to other brands); heightens need to network broadly
within the company‟s marketing department.
4. Cons/Key Risks
8. A. INTRO/EXECUTIVE SUMMARY
Sales and net profit forecasts for
May till December 2013
(8months) are below:
4. Deal Goals – Use of Proceeds
Revenue
8
Months
Net Margin
Conservativ
e
£1,294,1
48
15%
Reasonable £1,493,6
48
18%
Positive
£1,929,6
47
23%
Sales and net profit forecasts for
January till December 2014 (12
months) are below:
Revenue
12
Months
Net Margin
Conservativ
e
£1,729,0
00
15%
Reasonable £2,128,0
00
20%
Positive
£3,000,0
00
28%
To provide a budget for business development focused marketing, and working capital to
allow for the „longer sales cycles‟.
10. B. MARKET OPPORTUNITY
The marketing and advertising industry is growing in the UK and globally - despite
recession reports. „Engagement‟ continues to be considered highest on priority lists for
brands and „content‟ is the biggest buzz word of the moment, and its popularity is going
nowhere - with it being pinned at the most topical area for future growth in coming years.
Live brand experiences and events are well known to be prime sources for both consumer
engagement and digital content. Logical, bearing in mind a real life experience is clearly
more engaging and authentic than a pre-engineered traditional advertisement.
Results International have 21 years of experience and over 200 deals completed, they are
the market leader in providing corporate finance and consulting advice to Marketing
Communications companies.
According to Results International:
“Experiential has found its way to the heart of the marketing mix. The agencies that will
succeed in this arena are those that can match their experiential expertise with digital
technology and social media creating brand engagement. Social media-ready brand
experiences that transcend live and digital domains are the future.”
1A. The Market
11. The Advertising Association and Warc's quarterly Expenditure Report (UK) forecasts growth of 2.7
per cent this year and 5 per cent in 2014, and sites that Adspend grew 2.3 per cent year on year to
reach £17.2 billion in 2012. Global ad spending grew by 3.2% last year, but some sectors fared
better than others, details Nielsen.
Econsultancy's first Content Marketing Survey Report, sponsored by Outbrain, is based on a survey
of more than 1,300 marketers working for brands, agencies, and publishers. It shows: Increased
engagement is the most commonly cited objective for content marketers, with 52% of in-house
marketers and 58% of agency marketers listing this as one of their top three business objectives.
Over 90% of respondents believe that content marketing will become more important over the next
12 months.
In the 2013 Market survey report, Ad Media Partners asked senior executives in leading content and
marketing services companies “For services firms, is your company considering expanding or
acquiring any of the following services businesses?” „Experiential Marketing was selected 32% of
the time, Social Marketing was selected 64% of the time, and Mobile Marketing was selected 67% of
the time‟.
1B. Key Stats Below:
B. MARKET OPPORTUNITY
12. The landscape for „experiential marketing agencies‟ is comprised of a variety of agencies who
offer a varying scope of services, ranging from tactical promotional staffing agencies, to event
agencies and more content and engagement driven agencies such as Electrify. However, there
are few who focus on and harness a strategic proposition or effectively offer auxiliary services
which strengthen and leverage the power of an event or live experience as branded content.
Agencies vary from independents to those owned by groups, though true global players with a
proposition aimed at C-Suite brand executives are limited. Future competition is likely to come
from strengthened offerings provided by larger agencies buying smaller ones.
2. Competition:
B. MARKET OPPORTUNITY
14. C. SERVICES
We design integrated marketing communications that are content driven, and built
around live brand experiences.
We offer brand strategy, creative thinking, and create long-term brand platforms that
drive brand advocacy and ultimately evangelism.
Prospects and clients are Marketing Directors, CMO‟s, VP‟s of Marketing, Brand
Managers, Marketing Managers, Heads of Brand Engagement, Heads of Social
Media
28. D. SALES/MARKETING STRATEGY
1. Our ideal customers which we are targeting with our business development and
marketing initiatives, are as previously mentioned; CMO‟s, Marketing Directors, Senior
Brand Managers, Brand Managers, Marketing Managers, Heads of Marketing, Heads
of Social Media at major blue-chip brands. We have a primary focus on the following
sectors: Electronics, FMCG, Alcohol, Finance, and Online brands. We can reach our
audience via a number of channels such as creating thought leadership and social
events, and meeting them at networking events and speaking opportunities. We also
have a secondary strategy to gain introductions (not white-label) which is to complete
projects through media, digital and creative agencies.
1. The cost to acquire a client varies greatly depending on a number of factors, we have
designed a diagram demonstrating an overview to our sales and marketing strategy
below.
30. The sales process tends to take around 3 months on average, to take a prospect through the
pipeline, though the range is broad; varying between 1 month and 1 year. It then takes an average of
6 weeks to implement a project following its sign off, and around 4 weeks following on from project
completion in order to extract another brief from the client.
3B.
31. D. SALES/MARKETING STRATEGY
4. Major customers are aforementioned, with the addition of some other media agency partners.
Case studies of past projects can be found as an appendix.
Historic spend and forecasted spend (aligned with „Reasonable‟ middle tier forecasts) are broken
down in the following table.
32. D. SALES/MARKETING STRATEGY
Client BS 2011 BS 2012 BS 2013 Electrify 2013 Electrify 2014
Spend Spend Spend Spend Forecast* Forecast**
LOVEFiLM £50,000.00 £429,000.00£50,000.00 £0.00 £60,000.00 £100,000.00
Amazon £0.00 £0.00 £0.00 £0.00 £120,000.00 £350,000.00
General Mills £150,000.0
0
£0.00 £10,000.00£266,859.0
0
£332,000.00 £350,000.00
Casio £0.00 £83,000.00 £58,000.00 £0.00 £110,000.00 £110,000.00
Symantec £0.00 £60,000.00 £104,000.0
0
£0.00 £0.00 £125,000.00
Nationwide £0.00 £0.00 £27,000.00£24,274.00£200,000.00 £250,000.00
Zurich £0.00 £0.00 £49,000.00 £0.00 £75,000.00 £250,000.00
BrownForman*** £0.00 £250,000.00 £0.00 £0.00 £100,000.00 £300,000.00
L’Oreal £0.00 £30,000.00 £0.00 £0.00 £85,000.00 £250,000.00
MSM £0.00 £0.00 £25,000.00 £0.00 £75,000.00 £200,000.00
Fitness First £0.00 £0.00 £70,000.00 £0.00 £15,000.00 £70,000.00
Paddy Power £0.00 £0.00 £5,000.00 £0.00 £20,000.00 £75,000.00
Total £200,000.00 £852,000.00 £398,000.00 £291,133.00 £1,192,000.00 £2,430,000.00
Media Agency Spend Spend Spend Spend Forecast* Forecast
Rapport
(Yoplait+)
£0.00 £0.00 £123,000.0
0
£210,207.0
0
£229,000.00 £370,000.00
Talon £0.00 £0.00 £0.00 £0.00 £50,000.00 £100,000.00
Kinetic £657,396.0
0
£344,449.00£11,200.00£48,307.00£109,000.00 £100,000.00
Total £0.00 £344,449.00 £134,200.00 £258,514.00 £388,000.00 £570,000.00
Combined Total £857,396.00 £1,196,449.00 £532,200.00 £549,647.00 £1,580,000.00 £3,000,000.00
Reasonable Target n/a n/a n/a
£1,929,647.
00 % of Target
Existing Client Target n/a n/a n/a
£1,580,000.
00 82
New Biz n/a n/a n/a £349,647.00 18
Historically, LOVEFiLM have been able to determine their own marketing
spend and behaviour,
however, now that Amazon have started to play a much more assertive
role in the business,
marketing spends are subject to another level of sign off. Amazon are
very traditional in their way of thinking, as such spend with LOVEFiLM is
subject to a decrease from last year. We are aiming to infiltrate and
prove that our channel can produce quantifiable results for Amazon, with
the aim of building a strong long term relationship.
Brown Forman: in 2012 we were tasked with creating and project
managing the renowned JD Barrel Tree, this represented a high spend
through our channel. The decision was taken this year was to not repeat
this activity, however there are indications that it may reappear in 2014.
The aim is to infiltrate via our know contacts and generate new opps and
briefs aside from the Barrel Tree.
*This is the combined total of current spend and forecasted spend for
2013
**Please note that all 2014 forecasts are just that
*** We are classing BF as a direct client, as this is now the case
33. D. SALES/MARKETING STRATEGY
5. High Level P&L Under Different Scenarios for 2013 (8 months) and 2014
OVERHEADS (not inc. direct)
Category 8 Months
Personell £341,003
Marketing £30,660
Admin £31,383
Office Facilities (inc rates) £55,890
Finance £23,336
£482,272
2013 (MAY-DEC 8months)
Revenue 8 Months Direct Costs
Overheads
(inc. direct) Net Profit
Conservative £1,294,148 £592,913 £1,075,185 £218,963
Reasonable £1,493,648 £672,713 £1,154,985 £338,663
Positive £1,929,647 £847,112 £1,329,384 £600,263
BONUS SCHEME
Revenue 8 Months % of Salaries Profit Bonus Pool Net Profit After Bonus Net Margin
Conservative £1,294,148 10% £218,963.00 £29,982.00 £188,981.00 15%
Reasonable £1,493,648 25% £338,663.00 £74,956.00 £263,707.00 18%
Positive £1,929,647 50% £600,263.00 £149,912.00 £450,351.00 23%
34. D. SALES/MARKETING STRATEGY
2014 Annual 12 Months
OVERHEADS (not inc. direct)
Category Annual
Personell £512,047
Marketing £48,000
Admin £46,560
Office Facilities (inc rates) £96,020
Finance £35,000
£737,627
Revenue Annual
Direct Costs
(40%)
Overheads
(inc. direct) Net Profit
Conservative £1,729,000 £691,600 £1,429,227 £299,773
Reasonable £2,128,000 £851,200 £1,588,827 £539,173
Positive £3,000,000 £1,200,000 £1,937,627 £1,062,373
BONUS SCHEME
Revenue % of Salaries Profit Bonus Pool Net Profit After Bonus Net Margin
Conservative £1,729,000 10% £299,773.00 £45,044.00 £254,729 15%
Reasonable £2,128,000 25% £539,173.00 £112,609.00 £426,564 20%
Positive £3,000,000 50% £1,062,373.00 £225,218.00 £837,155 28%
35. D. SALES/MARKETING STRATEGY
6. A breakdown of spend
associated with our
proposed business
development /
marketing tactics is
below.
These activities have
been tried and tested
as effective in the past
and will be important in
Electrify‟s customer
acquisition plans
CHANNEL ACTIVITIES Q2 Q3 Q4
MAY JUNE JULY AUGUST SEPT OCT NOV DEC
OPPORTUNITY SOURCING
Individual, tailored emails (insight driven)
Telemarketing follow up calls (after
emails) £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00
Intermediaries (AAR etc)
Partnerships / JV's (Agency relationships)
WEB /BRAND PRESENCE
SEO £150.00 £150.00 £150.00 £150.00 £150.00 £150.00 £150.00 £150.00
Website (Programming updates) £200.00 £25.00 £25.00 £25.00
Website & Branding (Design / branding) £1,250.00
Tumblr Blog
Twitter
Linked In Group
Instagram
Other Social Media
Office Signage £750.00
SCHMOOZING CRM LIST
Drinks events - inviting prospects and
dormant clients £500.00 £1,250.00
Lunches - inviting prospects and dormant
clients £550.00 £550.00 £550.00 £550.00 £550.00 £550.00 £350.00 £500.00
Gifts - birthdays, new jobs, xmas, other
holidays £100.00 £100.00 £100.00 £100.00 £100.00 £250.00
Launch party £500.00
EXPERT EVENTS
Speaking opportunities - contacting all
event organisers
Seminars - hosting them £1,000.00 £1,000.00
Roundtable dinners - hosting them £800.00 £800.00
36. D. SALES/MARKETING STRATEGY
Channel Activities
MAY JUNE JULY AUG SEPT OCT NOV DEC
CONTENT PARTNERSHIPS
Research
Whitepaper
Slideshare
Infographics
Videos £100.00
Articles
Research Launch Event £875.00
Capture page £50.00
CREDIBILITY
Awards - entering
PR (online + offline) £525.00 £525.00 £525.00 £525.00 £525.00 £525.00 £525.00 £525.00
League tables
NETWORKING
Networking Events
Marketing Society £430.00 £100.00 £100.00 £380.00 £200.00 £200.00 £200.00
Industry Launches
SEGMENTED E-SHOTS
Newsletter (HTML) £70.00 £70.00 £70.00 £70.00 £70.00 £70.00 £70.00 £70.00
Personal emails (text)
Data £500.00 £500.00 £500.00
DM
Post items (showreel, books +)
Direct response postal letters £340.00 £600.00 £600.00
£4,420.00 £4,965.00 £4,195.00 £2,520.00 £5,175.00 £3,620.00 £2,295.00 £3,470.00
6. Continued Q2 Q3 Q4
38. CEO & Exec. Creative Director, and Partner
A marketer, writer, strategist, creative, visiting professor and
entrepreneur – Smilansky is a recognised star in the marketing
field.
Shaz is Visiting Professor at the London Metropolitan University,
has co-develop the first Masters degree on Experiential Marketing
in the UK „Digital Meets Experiential‟. She sits on the board of the
World Brand Congress 2013, has been a regular guest speaker
on BBC radio (Wake up to Money, and BBC Radio 5 Live).
Shaz is also the only UK author to have released a book on
Experiential Marketing, her book titled „Experiential Marketing, a
practical guide to interactive brand experiences‟ is sold in
international markets. The book is published by Kogan Page,
Europe‟s leading independent business publisher.
Shaz regularly flies around the globe to speak at industry events,
and teach reputable agencies and high profile brands the
Experiential Marketing methodology that she speaks about in her
book. Shaz often hosts workshops which focus on the relationship
between live brand experiences and social media, as well as how
ShazSmilansky
E. SENIOR MANAGEMENT TEAM
39. Financial & Commercial Director, and Partner
David is a multi-discipline Financial Accountant with over ten
years‟ experience within the within the marketing and PR industry;
a dedicated and enthusiastic professional with extensive financial
and general business management experience.
David develops and implements the production of financial and
management information, leads on creating a culture of
commercial awareness within the agency, and oversees
negotiations and volume deal arrangements to achieve cost
efficiencies with suppliers.
Prior to joining the team, David was at Hills Balfour Ltd – The UK‟s
leading Marketing and PR company in the travel & tourism
industry, there he was responsible for the Finance, IT, HR and
Office management departments, and grew the company turnover
to over £5m and over 50 staff with 3 subsidiary companies.
David Shobanjo
E. SENIOR MANAGEMENT TEAM
40. Strategy & Business Development Director, and Partner
After graduating with a Master‟s degree with Merit in Events
Marketing and Management, Iain has risen within the world of
Marketing at an accelerated pace as Strategy & Business
Development Director, and partner to lead Electrify‟s new
business and marketing machine whilst maintaining overall
responsibility for the agency‟s strategic output.
By leading on outstanding sales processes, pitches and proposals
Iain has successfully acquired clients for the agency such as
Haagen-Dazs, LOVEFiLM, Casio and Jack Daniel‟s on home turf,
as well as brands such as Symantec and ING for globe-spanning
projects across multiple markets worldwide.
Iain is regularly invited to speak on the topic of brand engagement
and lead workshops and brainstorming sessions for agencies,
brands and educational institutions.
Iain Swan
E. SENIOR MANAGEMENT TEAM
41. Client Services Director, and Partner
An experienced, experiential marketing industry senior marketer,
Dave is process driven, a strong communicator and leader of
diverse teams with demonstrable track record of successful
campaign development and account growth.
Dave rose to Client Services Director and partner position at
Electrify after driving successful and quantifiable growth across a
wide range of Blue Chip brands brands including LOVEFiLM, Jack
Daniels, Haagen-Dazs, Casio, Nationwide and Symantec.
David Williams
E. SENIOR MANAGEMENT TEAM
43. Exit is likely to happen around 2017 after 3 full operating years, to a major group such as Havas,
Omnicom, WPP, Aegis, Chime etc
A strategic sale is likely. As marketing spend is shifting, there is a prediction of an increased focus on
creating engaging social media content, long term „branded experience platforms‟, driven by
authentic „real world‟ experiences.
There is a growing appetite from C-Suite at bluechip brands to work with strategically focused
experiential marketing agencies on „brand activation‟ planning, especially those with an ethos that
fuses mobile, social and experiential. As an agency we specialise in effectively designing strategies
that combine live brand experiences with social media, and providing insight driven, structured
planning methodologies for integrated experiential marketing services.
The following research from the recent 2013 Market survey, demonstrates „multiple‟ predictions in
these areas.
F. EXIT ANALYSIS
7. Exit Analysis
45. F. EXIT ANALYSIS
FIG. 38 – Multiple of EBITDA
Reasonable
In Valuing Firms in
SHOPPER
MARKETING
1%
7%
20%
27%
17%
27%
9x or Greater
8x
7x
6x
5x
Less than 5x
46. F. EXIT ANALYSIS
FIG. 28 – Multiple of EBITDA
Reasonable
In Valuing Firms in
SOCIAL
MARKETING
15%
18%
20%
20%
11%
15%
9x or Greater
8x
7x
6x
5x
Less than 5x
50. G. LOCATION
Our offices are located on Rivington Street in the thick of Shoreditch, right next to Cargo and the
Iniva Gallery, in an art deco building,
originally built in the 1930‟s. The offices boast professional meeting rooms and a roof terrace, perfect
for client meetings and industry
networking.
52. APPENDIX
Medium Adspend
(£ million)
% change on
2011
Internet 5,416 13.2
Internet – pure-play
digital only
4,793 12.9
TV & video on
demand
4,480 0.4
National news brands 1,535 -6.0
Magazine brands 1,101 -9.4
Out-of-home 970 9.5
Radio 553 3.8
Cinema 213 25.6
Total UKadspend 17,172 2.3
UK Adspend 2012
Source: Advertising
Association/Warc
53. The 2012 experiential league tables for companies ranked by their 2011 turnover from experiential
activities is as follows. (Numbers in brackets shows last years position in the league tables, 2011
turnover from experiential marketing activities and % growth since 2012).
1. Jack Morton Worldwide (-, £42.1m,
n/a)
2. TRO (1, £28.2m, +15.6%)
3. RPM (2, £24.0m, +50.9%)
4. iD Experiential (11, £12.7m,
+101.6%)
5. Iris Experience (3, £11.8m, +3.5%)
6. Ignite (6, £11.3m, +36.1%)
7. Closer (5, £10.6m, +1.0%)
8. Exposure Promotions (7, £8.6m,
+3.6%)
9. Blackjack Promotions (9, £7.9m,
+16.1%)
10.Carbon Marketing (4, £7.8m, -
29.1%)
11.Innovision (-, £7.5m, +10.3%)
12.N2O (16, £7.2m, +53.2%)
13.Fizz Experience (8, £6.9m, -4.2%)
14.Sledge (17, £6.9m, +50.0%)
15.Event Marketing Solutions (15,
£6.4m, +28.0%)
16.Sense Marketing Services (13,
£6.1m, +7.0%)
17.Merchandising Sales Force (19,
£3.0m, +8.3%)
18.Initials Marketing (-, £2.9m, +45.0%)
19.Haygarth (18, £2.4m, -47.8%)
20.Ear to the Ground (-, £2.3m, +4.5%)
21.The Field (-, £2.3m, +27.8%)
22.The Lounge Group (21, £2.0m,
+17.6%)
23.Disrupt (-, £1.9m, -)
24.Link Communication (22, £1.3m,
+16.7%)
APPENDIX
54. APPENDIX22%
27%
32%
32%
32%
40%
42%
47%
49%
51%
59%
64%
66%
67%
33%
31%
37%
50%
41%
45%
49%
65%
70%
80%
74%
75%
Shopper Marketing
Corporate Communications
Experiential Marketing
Search Marketing
Market Research
Integrated Ad Agencies
CRM/Database Marketing
Marketing Technology
Marketing/Strategic Consulting
User Experiences/Design
Interactive Agencies/Web
Development
Social Marketing
Analytics
Mobile Marketing
2012
2013
Q. For services firms, is your company
considering expanding or acquiring any of the
following services businesses?
Fig. 5 – 2013 vs.2012 Areas of Expansion Interest
- Services
• The top three areas of interest for expansion
or acquisition remained consistent with last
year: mobile (67%), analytics (66%) and social
(64%)
• Overall, the percentage of respondents
interested in the various sectors has declined
since last year.
• The sectors with the largest declines in interest
declines in interest were search marketing (by
18 percentage points), social marketing and
marketing /strategic consulting (both by 16
percentage points).
55. APPENDIX
Areas of Expansion Interest - Content
Q. For content firms, is your company considering
expanding or acquiring any of the following
content businesses?
• The highest levels of interest for expansion or
acquisition were digital media (69%), custom
content (60%), app development (56%) and
user-generated content (56%)
• As with services sectors, overall interest in
these various content sectors has declined
since last year.
• Through big data received a great deal of
media coverage in 2012, only 21% of
respondents are considering expanding or
acquiring in that sector.
2%
20%
21%
24%
36%
40%
49%
49%
56%
56%
60%
69%
39%
66%
59%
79%
79%
90%
79%
79%
Place-Based Media
Ad networks
Big Data
Traditional Media
Information/Database Publishing
Lead Generation
Marketing Services
Online Video
User-Generated Content
App Development
Custom Content
Digital Media
2012
2013
56. This document is distributed by Electrify Worldwide Ltd (“Electrify”). This document is not intended to be a formal offering document. All information
contained herein is strictly Private and Confidential. Interested parties should form their own independent views. No responsibility or liability is, or will be
accepted, by Electrify, in relation to the accuracy or completeness of this document and any such liability is expressly disclaimed. This document is
intended for distribution inside the UK. Recipients of this document in jurisdictions outside of the UK should observe applicable legal requirements and
take the appropriate advice. Electrify is registered in England with company no. 8496601 at 81 Rivington Street, London EC2A 3AY.
