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  1. 2. Pacific Channel Brands Confidentiality Notice The following pages contain proprietary information of Pacific Channel Brands, (PCB) and is to be used by the recipient solely for the purpose of evaluating a transaction or business relationship with PCB. This Proprietary Information should be kept confidential and is not to be distributed, disclosed or disseminated to third parties.
  2. 3. Table of Contents <ul><li>A Strategic Approach </li></ul><ul><li>Imagine </li></ul><ul><li>The Southern California Salt Company </li></ul><ul><li>Southern California Salt Festival – An Overview </li></ul><ul><li>The Players – Who’s Who </li></ul><ul><li>Event Exposure </li></ul><ul><li>Partnership Opportunity Levels </li></ul><ul><li>Partnership Benefits </li></ul><ul><li>Ancillary Opportunities </li></ul><ul><li>The IP International Finance Group Approach </li></ul><ul><li>Partner’s Consideration </li></ul><ul><li>Summary </li></ul><ul><li>Appendix </li></ul>
  3. 4. A Strategic Approach <ul><li>Strategy </li></ul><ul><ul><li>Create the ultimate in action sports, music and lifestyle event by teaming action sports with the hottest musical acts on the planet. While providing partners with an organic platform to reach the coveted 18 – 34 year old demographic. </li></ul></ul><ul><li>Tactical Execution </li></ul><ul><ul><li>Launch The Southern California Salt Festival </li></ul></ul><ul><ul><li>Creatively weave partners’ objectives into a cross-platform package of benefits ranging form on-site to college campus tours, from social networks to “old” and “new” media programming. </li></ul></ul>
  4. 5. A Strategic Approach <ul><li>A music celebration, an action sports competition, the “last blast” of the summer ‘08 </li></ul><ul><ul><li>Today’s hottest musical groups & artists </li></ul></ul><ul><ul><li>The top names in surf, skate, BMX, wakeboard, beach volleyball, water skiing, jet skiing, Super Cross </li></ul></ul><ul><ul><li>A pristine waterfront location on the beaches of Ensenada, Mexico </li></ul></ul><ul><ul><li>Saying goodbye to the summer before the winter-blahs kick …creating a new date on the calendar… “Fall Break” </li></ul></ul>
  5. 6. Imagine… <ul><li>The hard to engage 18 – 34 demographic camping, swimming, watching action sports, listening to music, shopping, sampling, and testing new products. </li></ul><ul><li>Capturing and holding the elusive “counter culture” audience’s attention. </li></ul><ul><li>A “captured” audience anticipated to exceed 200,000 in year one, enjoying a three day mega-event. </li></ul><ul><li>Creating relevant content for re-distribution into traditional and new media outlets for this audiences consumption. </li></ul>
  6. 7. Imagine… <ul><li>Your brand and products tactically and organically woven into the fabric of this event. </li></ul><ul><li>A revenue-neutral, principal secured opportunity to become a sponsor…a concept never before applied to the entertainment marketing community. </li></ul><ul><li>You have just met Southern California Salt Festival 2008! </li></ul>
  7. 8. The Southern California Salt Company <ul><li>The Southern California Salt Company (SALT) is an emerging action sports, surf, skate, snowboard, water sports equipment and apparel manufacturer whose strategy is to gain significant market share as a retail operator and event organizer. </li></ul><ul><li>SALT will manage high profile, brand-marketing events to build awareness and solidify SALT’s position as an industry icon. </li></ul><ul><li>SALT will launch its product line at the Southern California Salt Festival and begin multi-channel distribution: </li></ul><ul><ul><li>Partnered/Company Owned Retail Stores </li></ul></ul><ul><ul><li>Catalogues </li></ul></ul><ul><ul><li>E-Commerce </li></ul></ul><ul><ul><li>Direct Mail </li></ul></ul>
  8. 9. The Southern California Salt Festival <ul><li>The Southern California Salt Festival (Salt Fest) is the lead marketing event in the launch of SALT </li></ul><ul><li>Salt Fest is a three-day, beach concert and sports competition extravaganza showcasing the top names in the music industry and action sports industry. </li></ul><ul><li>Salt Fest is strategically scheduled to take place in Ensenada, Mexico during Q4 ’08, providing key event and broadcast programming during a traditionally soft event and broadcast content period. </li></ul><ul><li>Salt Fest anticipates luring 200,000 attendees in year one, and millions of viewers to its ancillary programming. </li></ul>
  9. 10. The Southern California Salt Festival Continued <ul><li>Salt Fest will generate widespread recognition for The Southern California Salt Company and its Subsidiaries </li></ul><ul><li>Salt Fest will create global media and broadcast opportunities that can be leveraged by our partners. </li></ul><ul><li>Salt Fest Attendees and viewers will enjoy three days of non-stop entertainment </li></ul><ul><ul><li>30 of today’s hottest bands playing on three mammoth stages from noon to midnight. </li></ul></ul>
  10. 11. The Southern California Salt Festival Continued <ul><li>Action Sports: Pro-am competition in the following action sports disciplines: </li></ul><ul><ul><li>Surfing </li></ul></ul><ul><ul><li>Beach Volleyball </li></ul></ul><ul><ul><li>Skateboarding </li></ul></ul><ul><ul><li>BMX </li></ul></ul><ul><ul><li>SuperCross </li></ul></ul><ul><ul><li>Jet Skiing </li></ul></ul><ul><ul><li>Wake Boarding </li></ul></ul>
  11. 12. The Players – Who’s Who <ul><li>Note: SALT is is currently in negotiation with artists and athletes for Salt Fest 2008. Artists and athletes will be returning from summer tours and tournaments and have indicated their availability. Given the size and scope of Salt Fest artists’ and athletes’ management teams have consistently expressed their excitement in securing their clients participation. Furthermore, the Salt Fest model incentives participation by offering top dollar to artists and top prize money for athletes. </li></ul><ul><li>Musical Artists </li></ul><ul><ul><li>Currently, Salt Fest is scheduling 30 of the world’s most popular artists to perform and discussions are currently underway with the following artists: </li></ul></ul>Smashing Pumpkins Damian Marley Ziggy Marley Kings of Leon Interpol Elvis Costello Snow Patrol Switchback Yellowcard The Killers Linkin Park Muse Dave Matthews Pearl Jam Nickelback Augustana Yellowcard Modest Mouse Iggy & the Stooges White Stripes
  12. 13. The Players – Who’s Who Continued <ul><li>Action Sports Athletes </li></ul><ul><ul><li>Top athletes in the key action sports disciplines have expressed uniformed willingness to participate in Salt Fest invitational competitions. Given the substantial prize money that will be awarded during Salt Fest events, no appearance fees are required. Discussions are currently underway with the following athletes’ management teams to secure their participation: </li></ul></ul>Fallon Heffernan Katie Ketchum Andy Irons Bruce Irons Sunny Garcia Makua Rothman Kyle Berard Andy Macdonald Garrett Reynolds Rob Darden Chad Kagy Kevin Robinson
  13. 14. Event Exposure <ul><li>Paid Media Plan Overview </li></ul><ul><ul><li>SALT will expend a robust media budget to promote the 2008 Salt Fest </li></ul></ul><ul><ul><li>A $10MM paid media plan is being formulated that will include: </li></ul></ul><ul><ul><ul><li>TV, Radio, Online and Out-Of-Home </li></ul></ul></ul><ul><ul><li>Actual Buy Schedules and Media Plans will be shared with Partners </li></ul></ul>
  14. 15. Event Exposure Continued… <ul><li>Broadcast Partnership/Programming Placement </li></ul><ul><ul><li>Salt Fest will Result in the creation of hours of packaged content that will be re-purposed and cleared globally through multiple outlets: </li></ul></ul><ul><ul><ul><li>TV, Radio, Online </li></ul></ul></ul><ul><ul><li>Initial Broadcast Partnership discussions have taken place. Salt Fest anticipates potential programming distribution with partners, such as: </li></ul></ul><ul><ul><ul><li>MTV, Spike TV, Fusion, Fuel, Fox Sports Cable Net, ESPN, Univision, Telemundo, etc. </li></ul></ul></ul><ul><ul><li>A Network TV Partnership for Salt Fest will offer partners incremental benefits and exposure. </li></ul></ul>
  15. 16. Event Exposure Continued… <ul><li>Live Programming </li></ul><ul><ul><li>Salt Fest will create highly desirable content for cross-platform distribution, including </li></ul></ul><ul><ul><ul><li>Streaming, PPV, VOD, Live Remotes, Pod Casting and Private Network Television </li></ul></ul></ul><ul><ul><li>On-Campus TV </li></ul></ul><ul><ul><ul><li>Closed circuit on-campus distribution to over 400 universities and colleges in the US alone </li></ul></ul></ul><ul><ul><li>Film, Video, DVD Long-term Distribution </li></ul></ul><ul><ul><ul><li>Salt will produce five (5) one-hour films per year documenting specific music and sporting events that took place at Salt Fest </li></ul></ul></ul><ul><ul><ul><li>A documentary film highlighting the genesis & growth of the first three years of Salt Fest is planned for TV distribution. </li></ul></ul></ul>
  16. 17. Event Exposure Continued… <ul><li>College Campus Activation Tour </li></ul><ul><ul><li>January 2008 Kick-off </li></ul></ul><ul><ul><li>Direct, on-site ticket and product sales opportunity </li></ul></ul><ul><ul><li>The Southern California Salt Company Affinity Card Marketing and Distribution Program </li></ul></ul><ul><ul><li>SALT Responsibility Video (Credit, Social, Alcohol Consumption, etc). </li></ul></ul><ul><ul><li>Test Drive, Sample, Product Introduction Promotions </li></ul></ul><ul><ul><ul><li>Partnership Tie-Ins </li></ul></ul></ul><ul><ul><li>Salt Fest “Battle of the Bands” and Salt Girl “Fresh Face” Search Contest </li></ul></ul><ul><ul><li>SALT Fashion Show </li></ul></ul><ul><ul><li>Student Internships, Design & Production Competition Program </li></ul></ul><ul><ul><ul><li>Film, Video, Design </li></ul></ul></ul>
  17. 18. Event Exposure Continued… <ul><li>Promotional Tie-Ins/Partners </li></ul><ul><ul><li>SALT will form strategic media partnerships to multiply event exposure </li></ul></ul><ul><ul><li>SALT sponsors will make a formal commitment to activate their partnership in the months leading to Salt Fest </li></ul></ul><ul><li>Ticket Sales Efforts </li></ul><ul><ul><li>Ticket sales will be promoted through a robust paid and promotional marketing mix </li></ul></ul>
  18. 19. Event Exposure Continued… <ul><li>SALT Digital </li></ul><ul><ul><li>Through its strategic partnership with InTouch Technologies, Salt Fest will support traditional media efforts with the latest tools in new media: </li></ul></ul><ul><ul><ul><li>Online SALT “Agents” that interact with consumers on their desktops </li></ul></ul></ul><ul><ul><ul><li>Streaming of SALT Radio </li></ul></ul></ul><ul><ul><ul><li>SALT Social Network </li></ul></ul></ul><ul><ul><ul><ul><li>Video Instant Messenging </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Video Chat </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Branded “FREE” Video Cams </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Parents “In Touch” Controls </li></ul></ul></ul></ul>
  19. 20. Partnership Opportunities/Levels <ul><li>Five (5) Exclusive Partnership Positions have been Created </li></ul><ul><ul><li>Founding Partners: </li></ul></ul><ul><ul><ul><li>Founding Partners will be integrated into all paid media </li></ul></ul></ul><ul><ul><ul><li>Founding Partners will “own” an Entitlement or Presenting Sponsorship of a specific venue or stage </li></ul></ul></ul><ul><ul><li>“ Official” Category Partners: </li></ul></ul><ul><ul><ul><li>“ Official” Partners will enjoy exclusive, business category defined supplier partnerships </li></ul></ul></ul><ul><ul><li>Food & Beverage/Retail Partners </li></ul></ul><ul><ul><ul><li>Food & Beverage/Retail Partners will enjoy onsite vending/revenue generating opportunities. </li></ul></ul></ul>
  20. 21. Partnership Opportunities/Levels Continued <ul><ul><li>“ Test Driving” </li></ul></ul><ul><ul><ul><li>Salt Fest Partners will have the chance to demonstrate their products and services in the Salt Fest Retail Village </li></ul></ul></ul><ul><ul><li>Cause-Related Tie-Ins </li></ul></ul><ul><ul><ul><li>Salt Fest will partner with demo appropriate cause related partners </li></ul></ul></ul><ul><ul><ul><li>Salt Fest will also donate a portion of its proceeds to The Worldwide Youth Initiatives Foundation </li></ul></ul></ul>
  21. 22. Partnership Benefits <ul><li>Each Salt Fest Partnership will be custom tailored to specifically meet the goals and objectives for each partner. </li></ul><ul><li>Benefits will include, but will not be limited to: </li></ul><ul><ul><li>Business Category Exclusivity </li></ul></ul><ul><ul><li>Paid Media Inclusion/Exposure </li></ul></ul><ul><ul><ul><li>On-Air, Online, Out-of-Home, etc </li></ul></ul></ul><ul><ul><li>Promotional Opportunities </li></ul></ul><ul><ul><ul><li>Pass Through to Third Party Key Accounts </li></ul></ul></ul><ul><ul><li>Exposure in Broadcasting </li></ul></ul><ul><ul><ul><li>Commercial Units </li></ul></ul></ul><ul><ul><ul><li>Drop-Ins/Features </li></ul></ul></ul><ul><ul><li>College Campus Tour Benefits </li></ul></ul><ul><ul><li>Ticket Sale Benefits </li></ul></ul><ul><ul><li>On-Site at Salt Fest </li></ul></ul><ul><ul><ul><li>Signage </li></ul></ul></ul><ul><ul><ul><li>Athletes </li></ul></ul></ul><ul><ul><ul><li>Retail </li></ul></ul></ul><ul><ul><li>Tickets and Hospitality </li></ul></ul>
  22. 23. Ancillary Opportunities <ul><li>The Salt Fest Program </li></ul><ul><li>The Southern California Salt Company Magazine </li></ul><ul><li>The Southern California Salt Company Coffee Table Book </li></ul><ul><li>SALT: The Music CD </li></ul><ul><li>Film, Video, DVD Long-term distribution </li></ul><ul><ul><li>Note: all of the above opportunities will include our founding partners. </li></ul></ul>
  23. 24. The IP International Media Fund Approach <ul><li>The IP International Media Fund (IPIMF) is a private equity investment fund </li></ul><ul><li>IPIMF will secure partners funds while delivering a three-year secured principal return and an equity position in all IPIMF structured media and marketing initiatives (above and beyond Salt Fest) </li></ul><ul><li>All partner/sponsor fees to IPIMF will be supported by “zero coupon bonds”* provided directly to investors and assigned values to partner/sponsor. </li></ul><ul><li>Principal is secured, while assuring a conservative ROI Model </li></ul><ul><li>The partner/sponsor’s entire contribution is returned at the End of Term. </li></ul><ul><li>ENJOY ALL PARTNERSHIP BENEFITS FOR THREE YEARS AT NO “HARD” COST! </li></ul><ul><li>*”Zero coupon Bonds” are used as an example, the financial bank or US Treasury Instrument for any and each investor may vary. </li></ul>
  24. 25. In Summary <ul><li>Imagine… </li></ul><ul><ul><li>A ground floor stake position in the ultimate action sports, music and lifestyle event ever created </li></ul></ul><ul><ul><li>Strategically capturing and holding the elusive “counter culture” audience’s attention through relevant events and programming </li></ul></ul><ul><ul><li>Your brand(s) and products tactically and organically woven into the fabric of this event </li></ul></ul><ul><ul><li>Exposure in a 18-month media and promotional campaign </li></ul></ul><ul><ul><li>Tailoring “your” specific program to leverage tremendous activation and benefits against your business goals </li></ul></ul><ul><li>Now Imagine… </li></ul><ul><ul><li>Doing so within a RISK FREE model that returns your investment at the end of the program. </li></ul></ul>
  25. 26. Appendix <ul><li>Critical Path to Salt Fest 2008 </li></ul><ul><li>Salt Fest Event Schedule </li></ul><ul><li>Salt Fest Site Plans </li></ul><ul><li>Potential Musical Acts and Action Sports Participants </li></ul><ul><li>Apparel Shots </li></ul><ul><li>Online Travel Partner Info </li></ul>