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Hunter Thomas  Gabbi Baker  Alex Caffrey
     February 3, 2013  New York, NY
agenda

  –    meet the team
  –    mission & business concept
  –    a change in play
  –    our niche
  –    conceptual store design
  –    advertising & marketing
  –    financials
  –    growth landscape
meet the team




    alex        gabbi   hunter
mission

       fundamentalplay is committed to
             child development.

           We believe that great play
             creates great minds.

  By creating interactive and educational play
   experiences, we can grow young minds to
  reach new heights of imagination, creativity
         and intellectual development. 	
  
business concept


     specialized, unique focus
        exceptional service
       high quality products
       engaging experience
a change in play




  competitive
  playground
a change in play




  competitive      new
  playground    consumers
a change in play




  competitive      new      evolution
  playground    consumers    of play
world toy industry


                    $23.3
                                    $23.1
    $23.9


                       $3.1

            $7.3
                                            $2.6




             $84 billion
      2.14% growth rate (‘07-‘11)
US toy industry


                        $22
                   billion US



        $284                  69%
          avg. yearly        of sales for
         expenditure       children under 8
           per child
a change in play




  competitive      new
  playground    consumers
mom: then




   traditional      rise of   family activity
  homemaker      soccer mom      director
mom: now




   work-life   increasing      mom’s
   balance     selectivity   community
a change in play




  competitive      new      evolution
  playground    consumers    of play
evolution of play




    kids getting       play has         social
  “older younger”   become digital   explorations
a change in play




  competitive      new      evolution
  playground    consumers    of play
toy stores: slow to change




      1950s
toy stores: slow to change




      1950s             2010s
toy stores: the reality
toy stores: the gap

•  shift towards international growth
•  focus only on kid’s experience
•  lack of attention to post-toddler years
•  rising cost and market limitations
   prevent potentially great, new toys	
  
our niche


   consumers       location      employees




            products        retail
            & brands     perspective
consumer

   purchasing power of women

  $7T 85% 1.3M 2/3
      is           of all       women      of consumer
 contributed     consumer      earn more   wealth in the
 by women in    purchases in      than        U.S. will
  the U.S. in   the U.S. are   $100,000      belong to
  consumer        made by      in annual   women in the
   spending       women          salary    next decade
consumer

                  looking for meaningful
    moms        products and expert advice


                 shopping for the child’s
    aunts
                   smile at any price


                  buying classic toys that
 grandparents
                ground their grandchildren
consumer: moms




                                        mom




      1 in 5             50%                $2.1T
  households contain   preschool toys    spending power of
  a mother, father &   purchased for    U.S. moms annually
    child under 18       education
consumer: aunts




                                          aunt




      23               68%                       76%
    million U.S.   are role models for       spend $500+
    Professional    kids in their lives    annually per child
   Aunts No Kids
feedback


        “This [concept]
 is fantastic…the PANK has
     long been ignored by
 marketers, and when she is
        appreciated and
 acknowledged, undeniably       Melanie Notkin,
                              Founder, SavvyAuntie
      she becomes loyal.”
consumer: grandparents




                                      grandparents




       70              $52                  2/3
   million American   billion spent       “spoil” their
    grandparents      on grandkids         grandkids
location

•  near affluent suburban and urban
   neighborhoods
•  co-located in grocery-anchored centers
   that include yoga studios, children’s
   clothing boutiques and lifestyle stores
•  high traffic areas with surface parking
employees


        specialized training
            friendly service
    college & graduate students
     child development focus
products




         Ubooly          Radio Flyer Wagon     Green Toys Block Set




   Plan Toys Dollhouse   LEGO Life of George   Hape Toys Peg Puzzle
brands
   craftsman                          traditional
 & independent   digital & building   & licensed
retail perspective

           We Are                     We Are Not




   •  Neighborhood Store         •  Teacher Supply Store
   •  Unique, High Quality       •  “Play Zone” or Day Care
   •  Educated, Friendly Staff   •  Mindless Toys
feedback



    “This is a great idea!
    It’s the right time for
 fundamentalplay to enter
       an underserved              Caren Shalek,
                                   Board Member,
        niche market.”
                              Toy Industry Foundation
store design

               1




               2
store design




               3




                   4
store design

               5




                   6
store design




                7



               7
                8
advertising & marketing




    social   community     events &
    media    engagement   promotions
advertising & marketing




    social   community     events &
    media    engagement   promotions
social media
social media
advertising & marketing




    social   community
    media    engagement
community engagement


              •  partnerships with
                 neighboring
                 retailers
              •  involvement in local
                 schools
              •  charity toy drives
advertising & marketing




    social   community     events &
    media    engagement   promotions
events & promotions

                   toy registry
                    program




                                   events for
       seasonal
                                   secondary
      workshops
                                   caregivers




                             storytelling
          new product
                             and expert
           launches
                               lectures
feedback


 “We hear a lot in our forum
   that…events tailored to
  working parents would be
     more valuable. Your        Maria Sokurashvili
                                 and Jeff Steele
  demographic is definitely         Founders,
 looking for what you offer.”    DC Urban Mom
spotlight: Bethesda, MD

            Population: 60,858

$130K         19.2%        $400        40%
median HH      under 14    per year    of the
 income        years old   per child   market



   Annual Revenue: $1.6 million
spotlight: Bethesda, MD
financials

     SPACE            REVENUE           GROWTH
  store: 1,800 SF   sales: $600/SF     first year: 5%
   rent: $60/SF      markup: 45%          after: 2%


                      EXPENSES
              team: manager + 8 employees
               marketing & other expenses
operating income




         FYE1   FYE2   FYE3   FYE4   FYE5
growth landscape



                            Brookline, MA

                        Greenwich, CT
                      White Plains, NY


                   Bethesda, MD
                   Alexandria, VA
growth strategy


           10-15 locations
       seasonal pop-up shops
       omnichannel expansion
    private label & exclusive lines
in review

            inspiring experience
              meaningful toys
              targeted market
       community engagement
     above all, child development	
  
future of play
Hunter Thomas  Gabbi Baker  Alex Caffrey

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EDENS smART Retail Challenge 2013

  • 1. Hunter Thomas  Gabbi Baker  Alex Caffrey February 3, 2013  New York, NY
  • 2. agenda –  meet the team –  mission & business concept –  a change in play –  our niche –  conceptual store design –  advertising & marketing –  financials –  growth landscape
  • 3. meet the team alex gabbi hunter
  • 4. mission fundamentalplay is committed to child development. We believe that great play creates great minds. By creating interactive and educational play experiences, we can grow young minds to reach new heights of imagination, creativity and intellectual development.  
  • 5. business concept specialized, unique focus exceptional service high quality products engaging experience
  • 6. a change in play competitive playground
  • 7. a change in play competitive new playground consumers
  • 8. a change in play competitive new evolution playground consumers of play
  • 9. world toy industry $23.3 $23.1 $23.9 $3.1 $7.3 $2.6 $84 billion 2.14% growth rate (‘07-‘11)
  • 10. US toy industry $22 billion US $284 69% avg. yearly of sales for expenditure children under 8 per child
  • 11. a change in play competitive new playground consumers
  • 12. mom: then traditional rise of family activity homemaker soccer mom director
  • 13. mom: now work-life increasing mom’s balance selectivity community
  • 14. a change in play competitive new evolution playground consumers of play
  • 15. evolution of play kids getting play has social “older younger” become digital explorations
  • 16. a change in play competitive new evolution playground consumers of play
  • 17. toy stores: slow to change 1950s
  • 18. toy stores: slow to change 1950s 2010s
  • 19. toy stores: the reality
  • 20. toy stores: the gap •  shift towards international growth •  focus only on kid’s experience •  lack of attention to post-toddler years •  rising cost and market limitations prevent potentially great, new toys  
  • 21. our niche consumers location employees products retail & brands perspective
  • 22. consumer purchasing power of women $7T 85% 1.3M 2/3 is of all women of consumer contributed consumer earn more wealth in the by women in purchases in than U.S. will the U.S. in the U.S. are $100,000 belong to consumer made by in annual women in the spending women salary next decade
  • 23. consumer looking for meaningful moms products and expert advice shopping for the child’s aunts smile at any price buying classic toys that grandparents ground their grandchildren
  • 24. consumer: moms mom 1 in 5 50% $2.1T households contain preschool toys spending power of a mother, father & purchased for U.S. moms annually child under 18 education
  • 25. consumer: aunts aunt 23 68% 76% million U.S. are role models for spend $500+ Professional kids in their lives annually per child Aunts No Kids
  • 26. feedback “This [concept] is fantastic…the PANK has long been ignored by marketers, and when she is appreciated and acknowledged, undeniably Melanie Notkin, Founder, SavvyAuntie she becomes loyal.”
  • 27. consumer: grandparents grandparents 70 $52 2/3 million American billion spent “spoil” their grandparents on grandkids grandkids
  • 28. location •  near affluent suburban and urban neighborhoods •  co-located in grocery-anchored centers that include yoga studios, children’s clothing boutiques and lifestyle stores •  high traffic areas with surface parking
  • 29. employees specialized training friendly service college & graduate students child development focus
  • 30. products Ubooly Radio Flyer Wagon Green Toys Block Set Plan Toys Dollhouse LEGO Life of George Hape Toys Peg Puzzle
  • 31. brands craftsman traditional & independent digital & building & licensed
  • 32. retail perspective We Are We Are Not •  Neighborhood Store •  Teacher Supply Store •  Unique, High Quality •  “Play Zone” or Day Care •  Educated, Friendly Staff •  Mindless Toys
  • 33. feedback “This is a great idea! It’s the right time for fundamentalplay to enter an underserved Caren Shalek, Board Member, niche market.” Toy Industry Foundation
  • 37. store design 7 7 8
  • 38. advertising & marketing social community events & media engagement promotions
  • 39. advertising & marketing social community events & media engagement promotions
  • 42. advertising & marketing social community media engagement
  • 43. community engagement •  partnerships with neighboring retailers •  involvement in local schools •  charity toy drives
  • 44. advertising & marketing social community events & media engagement promotions
  • 45. events & promotions toy registry program events for seasonal secondary workshops caregivers storytelling new product and expert launches lectures
  • 46. feedback “We hear a lot in our forum that…events tailored to working parents would be more valuable. Your Maria Sokurashvili and Jeff Steele demographic is definitely Founders, looking for what you offer.” DC Urban Mom
  • 47. spotlight: Bethesda, MD Population: 60,858 $130K 19.2% $400 40% median HH under 14 per year of the income years old per child market Annual Revenue: $1.6 million
  • 49. financials SPACE REVENUE GROWTH store: 1,800 SF sales: $600/SF first year: 5% rent: $60/SF markup: 45% after: 2% EXPENSES team: manager + 8 employees marketing & other expenses
  • 50. operating income FYE1 FYE2 FYE3 FYE4 FYE5
  • 51. growth landscape Brookline, MA Greenwich, CT White Plains, NY Bethesda, MD Alexandria, VA
  • 52. growth strategy 10-15 locations seasonal pop-up shops omnichannel expansion private label & exclusive lines
  • 53. in review inspiring experience meaningful toys targeted market community engagement above all, child development  
  • 55. Hunter Thomas  Gabbi Baker  Alex Caffrey