digital blue                            1



Current Trends in Youth Electronics : Just the Facts
                                                      Retailer Loyalty and Sales
                                                                                                                      Youth Electronic Trends
                                                      #1 reason to purchase - convenient store location
                                                      #2 reason to purchase - 75% shoppers prefer one
                                                      stop shopping vs. speciality stores

                                                      Consumer Purchasing Behavior
                                                       78% of buyers prefer stores vs. on-line allowing
                                                       opportunity to see product before purchasing
                                                       70% of buyers have price in mind and
                                                       search for products that meet criteria
                                                      Key Drivers of In -Store Purchasing Decision
                                                       Price Point
World Toy Sales in 2008 were $78 Billion               Packaging
Youth electronic category continues to increase        Floor Placement/Merchandising
market share in toy industry                           In-store promotional mixes

Fancy designs & gimmicks key way to attract buyers    Age Compression
                                                      Making a revolution in toy industry. Kids are
Consumerʼs spending down in economic times            becoming older
Holiday Sales represent 50% of annual sales                  Did you know?
                                                             A decade ago...
Households with kids 4-14 years old                            Girls up to age 10 played with Barbie
 Own on average 11 electronic devices                        Today...
 -Younger kids - educational                                    Age 5
 -Older kids - cell phones, digital cameras & PDMP


                                                                                                        digital blue                            2


Protection of Intellectual Property is major          Private Label in electronics straggles behind
                                                                                                                     Challenges/Threats




concern. Manufacturing overseas limits control        the general trend. Increasing every year -
of digital content and product design since           Currently accounts for 20% of electronic
multiple competitors share same factory base          business. Vendors such as Walmart could grow
                                                      this area in order to beat competitors in price
                                                      point war.
Merchandising and Product Placement on
retailerʼs floor                                      Erosion of Tween/Teen market
                                                             Did you know?
Fierce Competition
                                                             Feb. 2009 Hasbro abandoned “tween”
Could be eliminated from mass merchants
                                                             electronics category as tweens & teens
as they tr y to narrow their vendor base
                                                             prefer the “real thing” vs. the toy style

Casio & Viacom                                               versions.


Leap Fr og                  &    Sakar
Vtech & Sanario
Fisher Price
Spy Gear, Mattel, & Bratz
Bandai & Webkinz
Wild Planet
                                                                                                        digital blue                           3




        Smile!
                                                                                                                     Positioned for Growth




Competitive price makes product attractive
during the current economic climate

Future plans to incorporate social media
Face Book, Twitter, etc...into marketing mix
will help engage consumer and make product
more relevant to consumer

Licensing: Partnering with powerful Brands             Roll out Nov 2009 on-line purchases
and developing exclusive, innovative product
to expand target markets

Regular release of Innovative Product - new           Engaging with consumer Digital Blue has
product is the #1 driver of growth                    offered contests such as annual movie creator contest




                                                                                                           digital blue                       4




                                                         Dance!
Digital Blue has established relationships
with big box retailers. Analysis of purchasing                                                 FOR
                                                                                                                     Positioned for Growth




behavior shows most electronic purchases
are made at mass merchants.
                                                                                               JOY
Costco & Kohlʼs
Fr yʼs Electr onics
Meijer &Target
Walmar Us
Sears, Kmart, Toys R
                     t      &
Best Buy & JC Penney
Limited Too
      Did you know?
      Walmart and Target represent nearly
      50% of U.S. toy market

      Did you know?
      78% of Buyers prefer stores vs. on-line
      because ability to see/interact with
      product before purchasing



                                                                                                           digital blue                       5




 Contribute
                                                       Collaborate with licensees and vendors to
                                    AND HAVE           create fresh product & eye-catching packaging
                                                                                                                    What I Can Do for You




                                    SOME FUN!                Product Design - Fresh color and design
                                                             Product Packaging
                                                             Add Brand identity to pac kaging
                                                             Call out special features of product
                                                             Make product stand out!


                                                       Leverage licensees and accounts for product
                                                       and consumer trends and insights
                                                            Research market for competitors and
                                                            industry trends
                                                            Understand parents and gift givers
                                                            key purchasing decisions
                                                            Analyze booking and selling reports



                                                       Partner with sales, accounts, and licensees
                                                       to create impactful Brand presentations and
                                                       sales tools
                                                             Merchandising and Promotional ideas
                                                             to generate sales and grow revenue
                                                             Evaluate account product mix and look
                                                             for new opportunities to sell-in.
                                                             Engage customer with Brand by utilizing
                                                             technology and expanding marketing



                                                                                                        digital blue                          6



                                                      Eric Carleʼs
                                                                                                                    What I Can Do for You




                                                      art is distinctive and instantly recognizable

                                                      Digital Blue can enter the hot preschool market
                                                      - connecting with families and children. Gaining
                                                      their brand loyalty early on and retaining business
                                                      into tween and teen years. Partner with well
                                                      known names and create innovative, imaginative
                                                      product.


                                                      Eric Carle is a world celebrated and beloved
                                                      author and illustrator of childrenʼs books. He
                                                      innovatively creates picture books which capture
                                                      the imagination and hearts of young children.
                                                      The Very Hungry Caterpillar, his best known
                                                      work, has eaten its way into the lives of millions
                                                      of children all over the world. It has been
                                                      translated into more than 47 languages and
                                                      sold over 29M copies.



                                                             Did you know?
                                                             In addition to entertaining, electronics
                                                             can also foster creativity, learning skills
                                                             and decision making.



                                                                                                        digital blue                           9
                                                                                                                     C a r e e r O b j e c t i ve s




                                     Career Checklist
                                                     Melissa Ewers
                                     A team environment where diverse opinions are
                                     encouraged out of a common understanding that
                                     this will create better product. Collaboration and
                                     inspiration are expected

                                     To develop and grow a brand/product that kids love

                                     Join a company with an innovative culture where I can
                                     make significant contributions and bring a unique perspective


                                     Entrepreneurial culture with ability to wear many hats,
                                     visibility and growth potential within the company



                                                                                                        digital blue                     10

DB presentation

  • 1.
    digital blue 1 Current Trends in Youth Electronics : Just the Facts Retailer Loyalty and Sales Youth Electronic Trends #1 reason to purchase - convenient store location #2 reason to purchase - 75% shoppers prefer one stop shopping vs. speciality stores Consumer Purchasing Behavior 78% of buyers prefer stores vs. on-line allowing opportunity to see product before purchasing 70% of buyers have price in mind and search for products that meet criteria Key Drivers of In -Store Purchasing Decision Price Point World Toy Sales in 2008 were $78 Billion Packaging Youth electronic category continues to increase Floor Placement/Merchandising market share in toy industry In-store promotional mixes Fancy designs & gimmicks key way to attract buyers Age Compression Making a revolution in toy industry. Kids are Consumerʼs spending down in economic times becoming older Holiday Sales represent 50% of annual sales Did you know? A decade ago... Households with kids 4-14 years old Girls up to age 10 played with Barbie Own on average 11 electronic devices Today... -Younger kids - educational Age 5 -Older kids - cell phones, digital cameras & PDMP digital blue 2 Protection of Intellectual Property is major Private Label in electronics straggles behind Challenges/Threats concern. Manufacturing overseas limits control the general trend. Increasing every year - of digital content and product design since Currently accounts for 20% of electronic multiple competitors share same factory base business. Vendors such as Walmart could grow this area in order to beat competitors in price point war. Merchandising and Product Placement on retailerʼs floor Erosion of Tween/Teen market Did you know? Fierce Competition Feb. 2009 Hasbro abandoned “tween” Could be eliminated from mass merchants electronics category as tweens & teens as they tr y to narrow their vendor base prefer the “real thing” vs. the toy style Casio & Viacom versions. Leap Fr og & Sakar Vtech & Sanario Fisher Price Spy Gear, Mattel, & Bratz Bandai & Webkinz Wild Planet digital blue 3 Smile! Positioned for Growth Competitive price makes product attractive during the current economic climate Future plans to incorporate social media Face Book, Twitter, etc...into marketing mix will help engage consumer and make product more relevant to consumer Licensing: Partnering with powerful Brands Roll out Nov 2009 on-line purchases and developing exclusive, innovative product to expand target markets Regular release of Innovative Product - new Engaging with consumer Digital Blue has product is the #1 driver of growth offered contests such as annual movie creator contest digital blue 4 Dance! Digital Blue has established relationships with big box retailers. Analysis of purchasing FOR Positioned for Growth behavior shows most electronic purchases are made at mass merchants. JOY Costco & Kohlʼs Fr yʼs Electr onics Meijer &Target Walmar Us Sears, Kmart, Toys R t & Best Buy & JC Penney Limited Too Did you know? Walmart and Target represent nearly 50% of U.S. toy market Did you know? 78% of Buyers prefer stores vs. on-line because ability to see/interact with product before purchasing digital blue 5 Contribute Collaborate with licensees and vendors to AND HAVE create fresh product & eye-catching packaging What I Can Do for You SOME FUN! Product Design - Fresh color and design Product Packaging Add Brand identity to pac kaging Call out special features of product Make product stand out! Leverage licensees and accounts for product and consumer trends and insights Research market for competitors and industry trends Understand parents and gift givers key purchasing decisions Analyze booking and selling reports Partner with sales, accounts, and licensees to create impactful Brand presentations and sales tools Merchandising and Promotional ideas to generate sales and grow revenue Evaluate account product mix and look for new opportunities to sell-in. Engage customer with Brand by utilizing technology and expanding marketing digital blue 6 Eric Carleʼs What I Can Do for You art is distinctive and instantly recognizable Digital Blue can enter the hot preschool market - connecting with families and children. Gaining their brand loyalty early on and retaining business into tween and teen years. Partner with well known names and create innovative, imaginative product. Eric Carle is a world celebrated and beloved author and illustrator of childrenʼs books. He innovatively creates picture books which capture the imagination and hearts of young children. The Very Hungry Caterpillar, his best known work, has eaten its way into the lives of millions of children all over the world. It has been translated into more than 47 languages and sold over 29M copies. Did you know? In addition to entertaining, electronics can also foster creativity, learning skills and decision making. digital blue 9 C a r e e r O b j e c t i ve s Career Checklist Melissa Ewers A team environment where diverse opinions are encouraged out of a common understanding that this will create better product. Collaboration and inspiration are expected To develop and grow a brand/product that kids love Join a company with an innovative culture where I can make significant contributions and bring a unique perspective Entrepreneurial culture with ability to wear many hats, visibility and growth potential within the company digital blue 10