1. City of New York
E-Commerce Service Provider
PIN # MDC-06-2000
March 10, 2006
Proposal Presented by
13700 Oakland Avenue
Highland Park, Michigan 48203
www.budco.com
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Introduction
Budco brings outstanding qualifications to
every aspect of this complex, demanding
undertaking for NYC Marketing. We understand
the realities and opportunities inherent in an
online branded merchandise program. We are
ideally positioned to meet and exceed both
brand and business objectives.
We appreciate this opportunity to showcase our
credentials and look forward to continuing the
examination of our resources throughout the
selection process.
Budco Consumer Direct, Inc. spearheads our branded
merchandise capacity. They are dedicated to managing
branded merchandise initiatives and staffed with specialists
who know this business inside out.
Our consumer direct team are experts at combining the art
and science of branded merchandise. Both are essential to
conducting a successful program.
Art is the selection of quality products … the touch,
feel and “good hand” so essential to appropriate
representation of NYC brands. Art also involves
presentation of merchandise in an appealing
manner that attracts attention and encourages
purchase. Art is finding intriguing, brand-appropriate
items that top the “buy-it-now” list.
Science is the rigorous application of research and
testing to every facet of the undertaking. Science
includes the segmentation of audiences, the
analysis of purchase behavior and the refinement of
sales and marketing techniques. Science is the
forecasting of revenues and the management of
expenses so crucial to a successful program.
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Budco Delivers
We have the experience and infrastructure
to handle large-scale merchandise programs.
Budco’s e-commerce experience began in
1997, when we were one of the originating
companies for the Jeep Provisions program.
We have built and managed similar
e-commerce applications for several other
clients, detailed later in this proposal.
Budco Consumer Direct, Inc. is backed by the rest of the
750-person strong Budco organization, allowing us to
provide an integrated, single-source merchandise solution.
In addition to streamlining the supply chain, our in-house
capabilities save NYC Marketing time, money and
complexity.
As you will discover, Budco encompasses the full range of
merchandise resources in-house. Our inventory ordering
and management structures are particularly noteworthy
because they allow us to be efficient, effective and quality-
driven.
The Budco Logistics System (BLS) is our proprietary
inventory management platform. Using this architecture, all
functions are integrated into a single, end-to-end model. As
merchandise is selected and held in inventory, we use BLS
to catalog what we have and where it is located in our
warehouse. Upon receipt, products are assigned a bar code
license plate that is used to track location as long as the
item remains in our possession. As orders are received,
processed, picked and packed for shipment, BLS updates in
real-time what we have in stock.
For consumer ordering, we use Ecometry software, the
system of choice for some of the largest catalogers in the
world. For ordering, consumers log on to the Web site,
follow the links to the various merchandise categories
and use the shopping cart functionality to make a purchase.
Ecometry accepts credit card payments and logs orders on
to the Budco Logistics System for processing and fulfillment.
Our performance statistics for branded merchandise
fulfillment are enviable – 99.2% of all orders are fulfilled
within 24 hours of order processing. The very small
percentage of remaining orders are out the door within 48
hours of receipt.
Our warehouse structures are state-of-the-art. Six-high
racking allows more material to be stored in less space,
while temperature and humidity controls keep items in
pristine condition. Access to our warehouses is limited and
strictly controlled. High-value items are placed in locked
cages or the locked vertical lift module. Our horizontal
carousel is a sophisticated mechanism with rotating shelves
that delivers selected items to the operator based on
reading bar codes.
We’re excited about the opportunity to associate our world-
class organization with the world’s greatest city. Please
read on.
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Let’s Get Started!
We have organized our proposal response to best
present a logical flow of information. If you have any
questions, please feel free to contact:
Donna Jacob
Account Executive
Budco
13700 Oakland Avenue
Highland Park, MI 48203
(313) 957-5060
Table of Contents
Business Strategy
Budco can deliver real customers
to a virtual merchant
Scope of Services
Budco has the expertise to handle
all areas of responsibilities
Payment Structure
Budco’s financial commitment to
ensure success
This Is Budco
There’s more to Budco than meets
the eye
Attachments
Required proposal forms
and information
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Business Strategy
Budco can deliver real customers to a virtual merchant.
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Our Strengths Against NYC
Marketing’s Program Needs
As we have demonstrated with the execution
of similar programs we manage for other clients,
Budco’s strengths mirror the necessary
requirements to successfully deliver branded
merchandise.
Budco encompasses the many resources required
by the NYC Marketing program in-house, such as:
Internet and database services, Web site design and
hosting, creative, warehousing, order processing and
fulfillment, Contact Center, reporting and financial
management.
Budco has a Consumer Direct Marketing division
already in place. Our professional staff brings years of
hands-on experience to catalog and custom program
sales. Our processes are well-respected, as evidenced
by the satisfied branded merchandise customers we
serve.
Budco is ISO 9001:2000-certified and uses quality
processes to ensure complete customer satisfaction.
We are committed to continuous improvement,
constantly refining the effectiveness of what we do.
We pursue ongoing systems and process
improvements for one reason – to benefit our
customers. For example, continuing innovations in
systems and processes allow Budco to flawlessly
process the increased consumer shipments that always
occur during the holiday shopping season. During the
most recent 2005 holidays we did this without a single
inquiry relative to late delivery of packages. That’s a
record we’re proud of, and promise to continue.
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Branded Merchandise Experience
Budco, in one form or another, has been
managing branded merchandise programs
for almost ten years. We have had a role in
supporting clients in a variety of ways using
our warehousing, fulfillment, IT, digital printing
and creative competencies to support branded
merchandise programs for a number of
domestic and foreign automotive clients.
Our experience in non-automotive areas
includes the pharmaceutical, health care and
communications, spirits and entertainment
industries.
Two program examples:
Automotive Branded Merchandise Program
Our goal is to extend reach and recognition of multiple
brands through a comprehensive merchandise program.
We produce and manage all aspects of this activity,
which includes merchandise selection and purchase,
warehousing, management, catalog development, order
processing and fulfillment. Working with our client, we
have achieved excellent growth over an earlier, ASI-
based effort. At present, we receive 65,000 orders
annually and generate $12 million annually in sales.
Extended Service Plan (ESP) Marketing and Sales
Budco markets ESP to vehicle owners who didn’t buy
coverage at the dealership. We manage a multifaceted
process to solicit purchase, including contacting owners
via personalized direct mail and e-mail campaigns,
selling contracts through the Budco Contact Center and
managing the Installment Payment Program. We send
four million mailings per year, resulting in $10 million
annual sales. Furthermore, our work contributes to
improved customer satisfaction with the ownership
experience and increases customer repurchase of our
client’s products.
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Web Site Analysis
Any success that Budco and NYC Marketing
hope to have in this endeavor will rely on
strong analysis of the “field of play.”
Understanding who’s out there, what they’re
selling and how they’re selling it will be vital
information that will help us as we move
forward.
At this very preliminary stage, Budco has identified key
direct competitors, none of whom seem to have much
traffic, or the traffic they are receiving is being fed from
another source. For example, there are many Yahoo- and
eBay-based stores that are selling NYC merchandise;
however, we cannot get accurate readings on the rankings
of these stores due to the fact that they are hidden away as
sub-domains off of the parent sites. This skews their
numbers.
The traffic ranking of the few stores that we did find range in
rank from 1,345,657 to 107,250. The site that ranked
107,250 (nycwebstore.com), is an exception to the rule, and
far exceeds the rankings of the other sites. The good news
is that they are only taking advantage of about a dozen
possible avenues for marketing, leaving a wide array of
missed marketing opportunities.
Based on this information, and information gathered from
non-direct competitors (such as lapolicegear.com,
navyonline.com, etc.), it is evident that the only merchants
that are displaying any sort of positive traffic flow are either
a direct affiliate of the parent organization’s site, an
independent that sells many different types of merchandise,
or are part of a larger site like eBay or Yahoo.
This is good news for NYC Marketing. This means that the
sites that are “unofficially” selling merchandise are not
marketing well, or using offline methods of marketing. This
leaves a lot of room to surpass the competition.
Budco research has uncovered over 300 possible
marketing outlets and opportunities that we can
capitalize on.
The key to success in marketing this venture online is going
to be search engine marketing, link trades and interest-
based sites that will allow us to list our services on their site.
Based on rankings of the competitors, this seems to be the
primary avenues of traffic onto their sites … and not one of
them capitalizes on these methods effectively!
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Search Engine Marketing
In Internet marketing, search engine
marketing, or SEM, is a set of marketing
methods to increase the visibility of a Web site
in search engine results pages (SERPs).
The three main methods are:
Search engine optimization refers to the efforts to
improve rankings for relevant keywords in search
results. The goal is for the Web site to contain the latest
trends and updates in order to become the first available
to the visitor. It’s an ongoing process that involves
rectifying the Web site structure and content so that they
can be easily read and understood by the search
engine’s software programs.
Search engine advertising involves paying the search
engine company for a guaranteed high ranking, usually
somewhere in the top ten, or an ad displayed beside or
above the main search results. It’s commonly known as
pay-per-click advertising.
Paid inclusion also involves paying the search engine
company, but in this instance the Web site receives a
guaranteed ranking order in their natural search index.
SEM has become the number-one way of marketing
online. In the few years that it has been in existence, it has
rapidly moved from one way to market Web sites to the
primary way. All other methods take a back seat to search
engine marketing. In fact, in an Internet Retailer survey last
year, only 13% of Web sites reported that they don’t use
search engine marketing.
SEM is referred to as reverse direct marketing because
customers are actively seeking your business. Consumers
are expressing their interest in the product that you sell,
unlike in print, radio or TV advertising where you are
pushing the message to consumers.
Our efforts are focused on search engine optimization.
Because of the specific type of request that will be made
by customers “searching” for NYC merchandise (“NYC
sweatshirts,” as opposed to just “sweatshirts”), it is our belief
that maximizing the relevant keywords will deliver a highly
effective search result.
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Viral Marketing
Viral marketing is a marketing technique that
seeks to exploit pre-existing social networks to
produce exponential increases in brand
awareness through viral processes similar to the
spread of an epidemic. It is word-of-mouth
delivered and enhanced online; it harnesses the
network effect of the Internet and can be very
useful in reaching a large number of people
rapidly.
A very popular method of viral marketing that Budco
will employ for NYC Marketing is an e-zine, an online
newsletter that contains information of value, such as
tips, hints and news that we believe will be valuable to
consumers that also have shown an interest in NYC
merchandise. If the recipient finds the information
compelling, we invite them to forward it on to others.
E-zine publishing has become a very powerful marketing
tool for online merchants.
Over time, Budco will compile a significant e-mail database
of NYC Marketing customers and visitors. This will provide
us with an effective base of “subscribers” to enlist as
potential “distributors.” Quarterly, or seasonal, editions
that highlight special promotions will be most effective in the
viral world.
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Scope of Services
Budco has the expertise to handle all areas of responsibility.
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Electronic Commerce
Budco maintains one of the larger Information
Technologies groups in the Midwest. This depth
of talent provides the in-house muscle to
develop e-commerce solutions here at Budco.
Our clients’ Web sites are hosted in our “Web farm”
environment. Our full environment encompasses a
development, testing and production environment. The
production environment consists of several Sun servers that
are load-balanced and monitored for performance spikes.
Budco also provides internal and external monitoring of
Web applications.
Budco maintains in-house control over all aspects of Web
site IT research and development, which streamlines the
process and saves our clients time and costs. Plus, since
we also maintain our own in-house creative agency, we can
easily graphically create or edit Web site visuals as needed.
Overall, this pays off in a more cohesive effort in all
facets of the program including e-commerce and Web
development.
Budco has in-depth expertise in the area of interactive
Internet applications. Budco has provided
comprehensive interactive Internet solutions for Ford,
UPS, Delta Airlines, Nissan, Infiniti, Disney and other
Fortune 1000 companies.
Budco capabilities include the following:
Business-to-business e-commerce solutions (i.e., dealer
Web-based: VW eStore, I-Pod application, Ford eStore,
DCX eStore)
Business-to-consumer e-commerce solutions (i.e., Ford
Centennial, Nissan and Infiniti Merchandise Web sites)
Business-to-employee solutions (i.e., Delta Airlines and
UPS Dependent Audit solutions)
Business-to-client solutions (i.e., Budco Extranet
Web site)
Business-to-business XML solutions (i.e., Ford
Motor contracts)
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E-Commerce Design
Effective Web sites begin with effective,
impactful graphics and thoughtfully designed
functionality. Budco, unlike Web-centric
companies, maintains a full-service boutique
graphic arts capability in-house.
This means we can, in conjunction with our IT-based
interactive media group, create an effective merchandising
shopping experience that, from a look-and-feel perspective,
takes into account the big picture of everything being
communicated (print, HTML e-mail, existing branded
graphics, TV). This way, we can create a consistent visual
environment that is an effective extension of the brand.
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E-Commerce Technology
Budco uses state-of-the-art technology in
support of all e-commerce applications. We
utilize an industry standard development
methodology (Systems Development Life
Cycle – SDLC) approach to the actual analysis,
design, development, implementation and
maintenance of each application.
Budco has extensive experience with J2EE, and we deliver
full J2EE solutions for our clients. Additionally, we deploy
our solutions with JSP/JSTL, Java Servlets and Java Data
Access Objects. We use JSP/JSTL to facilitate rapid
development and ease of deployment. As part of the J2EE
family, JSP technology enables rapid development of Web-
based applications that are platform independent.
JavaServer Pages technology separates the user interface
from content generation, enabling developers to change
the overall page layout without significantly altering the
underlying dynamic content. JSTL allows our team to use
standardized JSP actions, and handle the tasks that need to
be executed by most JSP pages, thereby speeding up JSP
development.
The Servlets we deploy provide a component-based,
platform-independent method for building Web-based
applications. We deploy them on a Sun One Application
Server. The Servlets we implement have access to the
entire family of Java APIs, as well as our Java-based Budco
API, which is also used to access enterprise databases
using JDBC.
One of the core J2EE design patterns Budco implements
is Data Access Object. The DAO implements the access
mechanism required to work with the data source. The data
source we connect to is Oracle. The business component
that relies on the DAO uses the simpler interface exposed
by the DAO for its clients. The DAO completely hides the
data source implementation details from its clients.
Because the interface exposed by the DAO to clients does
not change when the underlying data source implementation
changes, this pattern allows the DAO to adapt to different
storage schemes without affecting its clients or business
components. Essentially, the DAO acts as an adapter
between the component and the data source. We implement
DAO with our solutions, and connect to the data source via
the Budco API and connection pool.
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Order Processing
We recognize that the overwhelming majority of
orders will be through the Web site, but orders
can also be accepted by toll-free phone, fax or
mail. However received, all orders are entered
directly into our order entry database. This
order entry database enables us to identify
and cross-sell client merchandise and
accessories. The system allows for payment on
credit card, check, purchase orders and gift
certificates. The merchandise fulfillment system
interfaces with Budco’s warehouse
management system; this process provides
multiple delivery options designed to meet the
client’s needs.
The Budco Logistics System (BLS), our warehouse
management system, is proprietary Oracle-based software
that provides management of all inventory and order-
processing functions. By integrating warehousing, inventory
management, ordering, shipping, tracking and billing into a
single system, BLS offers real-time oversight to manage
warehouse and fulfillment activity as a single entity, rather
than a series of disjointed functions. BLS is linked to our
radio frequency tracking system. As orders are processed
and items are picked for fulfillment, radio frequency tracking
updates BLS with inventory status.
Orders being sent to our horizontal carousel are
electronically sorted into the most efficient pick sequence
and picked in batches of 12 orders at one time. Orders
containing material not housed in the carousel are routed to
the appropriate radio frequency directed picking area. The
time frame for internal processing can range from same-day
to 48 hours, depending on client needs.
Internet, e-mail and phone orders are processed in real-
time, unless otherwise designated.
Budco is able to provide customers with very responsive
order acknowledgements. We use outbound e-mail for
Web and phone order confirmations. Phone orders are
confirmed while the customer is on the phone. An order
reference number is provided if they should need to contact
us for additional information on the order. If the status of the
order changes after confirmation, we send out FTC notices
and/or e-mail or make a phone call if the situation warrants.
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Customer Service
Budco currently offers same-day shipping for
in-stock merchandise.
BLS is equipped with a rush order feature that
systematically processes those orders before non-rush
orders. Rush orders are flagged in our system; on-line
orders are assigned a rush code, phone orders by the
customer service representative receiving the request. This
indicates that immediate fulfillment is required. We can take
emergency orders up until 1 p.m. ET for fulfillment and
shipment that same day. There is no additional charge for
rush orders.
Each customer order is assigned an order number. At the
time of shipment, every tracking number associated with
that order is captured by BLS and transferred into our order
entry system. Should a customer report a lost shipment, we
have the ability to track each individual package by
viewing that customer’s order record while he or she is on
the phone.
Consumers placing orders via the Web are informed
immediately if an item is on backorder. The Web site will
show if an item is out of stock and disables the item from
being ordered. Fax or mail users are updated on backorder
or out-of-stock items either by e-mail, if we have an address,
or by U.S. mail.
All Budco backorder processes are in strict conformance
with Federal Trade Commission regulations. We retain data
on backordered items for fulfillment once the merchandise
arrives in inventory. Since our inventory management
system functions in real-time, BLS flags backorders for
immediate fulfillment. BLS has a variety of features for
monitoring backordered items. Once the item arrives at our
warehouse, it is quantified, received and located. Pending
backorders can be released in several ways to best suit the
situation. We have the option of releasing backorders
individually, or on a mass basis.
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Distribution
Budco determines the shipment’s destination,
piece weight, piece dimensions, content, and
urgency of the order, all of which factor in
determining the best method of delivery.
As one of the largest shippers in the Midwest, we work with
all major carriers, including DHL, FedEx, UPS and the U.S.
Postal Service. Given our volumes, we are extended
discounts by all our shipping partners, which we pass on
to our customers.
In the complex world of export shipping, Budco's strength
is drawn from our partners. We work with UPS, as well as
several international freight forwarders and LTL carriers that
act as agents on our behalf for export shipping.
Currently, the necessary export documentation is produced
by our shipping system, ConnectShip. The selected shipping
partner handles all customs clearance matters, actual
transport across borders, the assessment of potential duties
and taxes and final delivery to the recipient. Our carefully
chosen partners have consistently delivered to meet our
quality operating standards time after time.
All of Budco’s warehouses are electronically secured via
our badge-reader system. In order to access any one of our
warehouses, you must scan your employee badge and enter
the associated PIN code in order for the door to unlock. The
badge-reader system keeps records of employees who have
access to the warehouse, at what time and via which door.
We also offer additional levels of security for items of high-
value in the form of our High-Security Lock-Up for larger
items, and our Secured Vertical Lift Module for smaller
items.
Our High-Security Lock-Up is a restricted-access area used
to store large and small, high-value items. Budco has 108
pallet locations, as well as a 54-cubic-foot safe. Two
separate lock/key systems are accompanied by electronic
surveillance to ensure the security of items stored in this
area.
Only SOF Supervisors on a merchandising program have
access to the Secured Vertical Lift Module (SVLM), and they
monitor the entire process of item put-away, order fulfillment
and bin replenishment. All movements of these typically
small, high-value items, in or out of the SVLM, are carefully
verified by the responsible SOF Supervisor.
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Systems and Reporting
Budco is prepared to provide reports required
by NYC Marketing and can customize them to
your specifications. While we do ad hoc
reporting per client request, we recommend that
custom reports be specified during program
design.
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The Budco Team
The New York City e-commerce project team
members bring with them invaluable insight as it
relates to the quality expectations on the part of
our clients.
Some of the key Budco individuals who will be responsible
for the NYC account include:
Mike Watson, Vice President, Sales
Mike oversees a variety of corporate accounts, including
automotive, health care, telecommunications and
consumer products. He focuses on high-level strategic
development and executional design of dialogue-
building initiatives to help corporate customers build and
foster relationships with their customers. Since joining
Budco in 1992, Mike has held positions including
Account Manager and Account Director prior to
assuming his current role. He is a graduate of Oakland
University and holds a Bachelor of Science degree in
marketing.
Jim Bevins, Director, National Account Group
Jim has responsibility for developing strategies for a
variety of clients, including Volkswagen/Audi, Disney,
Ameritech, Ford Human Relations Division and others.
He has 25 years of special promotions and marketing
experience, including substantial work in the branded
merchandise field. He is a graduate of Walsh College
with a major in business administration.
Donna Jacob, Account Manager
Donna has responsibility for overseeing the Budco
Consumer Direct Marketing account team. In this role,
she has managed several branded merchandise
programs for major automakers. Prior to joining Budco,
Donna spent ten years with Ross Roy Canada,
supporting marketing initiatives for various clients. She
is a graduate of the University of Windsor with a major
in marketing.
Greg Rivers, General Manager, Consumer Direct
Greg manages multiple consumer catalog programs that
sell branded merchandise. Before coming to Budco,
Greg spent 14 years with Valassis Communications,
Inc., primarily focusing on providing printed promotion
for consumer packaged goods companies and
franchised retailers. He earned bachelor’s and master’s
degrees from Rochester Institute of Technology and
Central Michigan University.
Janice Thomas, Merchandise Specialist
Janice adds to the NYC Marketing team her extensive
knowledge of apparel and hard goods, both inside and
outside promotional products. She has over 23 years of
advertising and marketing experience, with 16 years
devoted to the promotional products industry. Janice
graduated from Oakland University with a BA in
communications.
Kevan Kapadia, Senior Web Developer
Kevan brings 10 years of experience, as well as his
exceptional skills, training and experience in Web
technology to the NYC Marketing team. Kevan has
successfully implemented and executed numerous Web-
based applications and Web-based marketing initiatives for
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some major corporations. Kevan is on track to complete
his BS in e-Business this year from the University of
Phoenix.
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Payment Structure
Budco’s financial commitment to ensure success.
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The Budco Commitment
We are excited about developing a solid
business relationship with NYC Marketing.
As “teammates,” we will be driven to meet
and exceed all expectations to help both NYC
Marketing and Budco realize financial returns
that will benefit our partnership.
As your partner, it will be our mission to help
you achieve your three primary goals:
Generate revenue
Support important city initiatives
Market NYC around the world
The difficulty in trying to meet your financial
requests in the marketing of your brand, while
balancing the investment that we’re being asked
to accept, is the uncertainty of exactly what the
market is.
Many Intangibles
“If you build it they will come,” may have been the
successful mantra running throughout the popular Kevin
Costner movie Field of Dreams, but there’s a little more
financial risk at stake in this operative.
Because of the unavailability of historical sales results, as
well as the uncertainty of the traffic that we can reasonably
expect the site to generate, we’re being asked to make a
“financial leap of faith” that simply throwing open the cyber-
doors will be all it takes to sell what we all hope is popular
branded merchandise.
The Financial Unknowns
The lack of relevant historical volume data places us in an
information void. Consequently, we do not have enough
information to make sound financial projections and
business decisions with confidence. This is somewhat
challenging, since the financial model that you’ve requested
asks that the financial risk be fully borne by your e-
commerce provider. Perhaps we can agree upon a financial
model allows us to launch a pilot period to establish a sales
track record that ultimately leads to the type of royalty
financial model that you seek.
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Year One Pilot Program
We propose a 12-month pilot program whereby a
traditional fee-for-service business model is invoked.
This will allow NYC Marketing to retain all profits from
the sale of their merchandise. In turn, Budco will be paid
for only the services we provide.
In conjunction with the fee-for-service model we
propose a tiered rebate royalty program. This could be
in the form of a quarterly rebate from Budco to NYC
Marketing, based on the program volume and a pre-
determined percentage of services paid to Budco; the
higher the volume, the greater the percentage.
Long Term Program
After the 12-month pilot period we will convert the NYC
Marketing e-commerce program to a 100% royalty
model once program volumes are established and
performance is analyzed.
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This Is Budco
There’s more to Budco than meets the eye.
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This Is Budco
Budco is a full-service marketing services and fulfillment company dedicated to assisting
organizations in creating, managing and improving communication with their customers. As
The Dialogue Company, we do this by looking at the various points of contact a client may
have with their customers and determining the best way to build ongoing relationships. We
work with a broad spectrum of companies and implement services using an array of internal
marketing competencies.
Established in 1982, Budco is now a $100 million company (gross sales) with 750 permanent
employees. Located in Highland Park, Michigan, we are in the center of the metropolitan
Detroit area. We are privileged to operate from a 27-acre World Headquarters campus, with
two primary facilities:
Budco West, our main building (foreground, left), was new in mid-2000 and
encompasses 362,000 square feet. Of that total, 252,000 square feet are devoted to
operations and warehousing, and 110,000 square feet to sales, marketing, creative,
financial, call center and administrative functions.
The adjacent Budco East was acquired in late 2002 to accommodate our rapid growth,
particularly in the warehousing and distribution areas. The facility covers 202,000
square feet.
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Wide-Ranging Competencies and
Customized Solutions
Our marketing competencies cover every
aspect of customer dialogue. Frequently, we
combine or bundle competencies to create
customized products or solutions. We
concentrate our efforts in four areas of benefit
to our customers: reducing costs, increasing
revenue, enhancing loyalty and reducing
cycle time. At present, we do business
primarily in the automotive, health care,
pharmaceutical, retail, and travel and leisure
segments. The following are other in-house
marketing competencies that we have not
discussed earlier in the document. Many of our
clients are eager to engage additional Budco
competencies over and above their original
intentions.
Budco Creative Services
From initial concept through tactical execution, the Creative
Services group is a full-service advertising and marketing
resource. We offer expertise in many areas: concept
development, brand management, broadcast production,
design and art direction, print production and copy writing.
Our award-winning creative team produces advertising,
collateral, direct marketing, point-of-sale, presentation and
merchandising materials in print, broadcast, electronic and
alternative media. Our experience encompasses retail,
consumer and business-to-business arenas.
Budco Financial Services
This is our financial clearinghouse, handling customer
initiatives that involve financial transactions. Services
include cash management, credit card processing, monthly
dealer billing, invoicing, accounts payable processing and
rebate processing. We also provide financing to consumers
for purchase of extended service contracts.
Digital Print
Anchoring our extensive digital print capacity are two Xerox
iGen3 color digital presses. With near-offset quality, these
printers support marketplace demand for customized one-to-
one communications. Additional sophisticated color and
black/white equipment allows us to output three million color
and 13 million black/white impressions per month. We also
provide print-on-demand services in order to tailor materials,
volumes and timing to customer order.
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CD Duplication
We offer a menu of CD publishing options, from simple
duplication using a provided master to complete new
program production. CD technology continues to
increase in importance as a sales, promotional and
training tool, in part because disks are easy to
reproduce and cost-effective to distribute. By adding our
database capabilities to the production process, Budco
can customize content of each CD to individual
recipients.
Fulfillment
Budco originated as a distribution and fulfillment
company and we continue to be a leader in this area.
Working in both business-to-business and business-to-
consumer segments, we offer everything from bulk
distribution of thousands of cartons to Special Order
Fulfillment of a single item. Specialized equipment such
as moving horizontal and vertical carousels, flow racking
and forward pick bins increases the efficiency of our
operation. We offer kit assembly and work in both
manual and automated modes.
Information Technologies
Our IT staff is involved with every type of customer initiative
and internal operation, from a simple personalized letter, to
a centralized database, to providing the central nervous
system behind our inventory management and fulfillment
expertise. The department is divided into three specialized
disciplines: Application Development to design, facilitate and
manage specific customer initiatives; IT Operations to
oversee servers, the Web farm, tools, connectivity and
digital print; and Systems Support to maintain our network
structure and connectivity.
Lettershop and Finishing
Budco provides a wide range of bindery and finishing
services, including collation, cutting, drilling, laminating,
punching, shrink-wrapping, stitching and tabbing.
Companion lettershop operations encompass
personalization, folding, inserting, addressing, labeling
and mailing. We house specialized equipment to enable
our work in this area, such as high-speed inserting, collating
and booklet-making systems, and a smart collator that uses
video and bar code technology to handle up to 15
separate items.
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Printing and Production
In addition to digital print services, we offer offset
printing in support of specific customer programs. We
also manage the work of outside printing companies for
more complex jobs.
Mailing Services
At present we process and ship three million special orders
and mail 20 million letters annually. Another 850,000
packages go out as part of our mail consolidation and
management systems. We maintain partnerships with all
major carriers and are designated a plant load verification
site by the U.S. Postal Service. Using sophisticated software
such as ConnectShip to identify the most cost-effective
carrier from among selected suppliers and PostalSoft to
verify and correct addressing information, we ensure
accuracy and cost efficiency.
Research and Development
In response to the demand for knowledge-based marketing,
this department provides high-quality market research
services focused on business development, product and
service evaluation and strategic planning. By looking at
innovative processes that increase the effectiveness of
marketing initiatives and employing the power of database
design to effectively target markets, we work with customers
to improve the performance of their initiatives.
Warehousing and Inventory Management
Highlights of our warehousing and production expertise
include 32 shipping docks, 30-foot-high ceilings to take
advantage of the latest storage methods, a climate-
controlled environment and limited, secure access to
our facilities. At the heart of our leadership is the Budco
Logistics System, our proprietary platform for integration
of all inventory, order processing, fulfillment and billing
functions into a single, end-to-end process. We track all
items in all facilities using advanced bar code technology
and radio frequency interface to determine real-time location
and quantity. These technologies are linked to other Budco
competencies for complete control of customer
warehousing, fulfillment and distribution work.
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Quality Processes and The Five
Rights
As an ISO 9001:2000-certified company,
Budco programs are handled according to our
Quality Operating System, or QOS. The QOS
process specifies the way work flows through
the organization and imposes a set of metrics
to track performance against objectives. All
work is completed and evaluated in accordance
with our strict QOS standards because we know
that the key to quality execution is unrelenting
attention to detail.
Foundation components of the quality process are a clear
determination of customer expectations, the assignment of
qualified personnel to handle the project, the definition of a
process for completing the project and the delineation of
measurables. From advanced planning through process
development, implementation and measurement, our
emphasis is on continuous improvement.
Because we are dedicated to the delivery of a quality
product, we’ve distilled our efforts into what we call The Five
Rights. These Rights define what our customers can and
should expect from us:
Right Product/Service refers to providing the
appropriate process, system or service to meet the
customer’s specifications.
Right Customer Handling governs our interactions
with customers and specifies thoughtful, professional
dealings at all times.
Right Time means we deliver according to mutually
acceptable deadlines.
Right Value has to do with defining and meeting
expectations relative to price and value.
Right Solution is our commitment to meeting both
immediate needs and long-term goals, providing
products and services that meet customer needs.
We are dedicated to meeting and exceeding customer
expectations. And that’s not a matter of chance. At Budco,
we observe the kind of disciplined process that ensures
delivery on our commitments – our customers can count
on that!
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Results … Nothing Else Matters
In the final analysis, our entire company is
dedicated to a single purpose – delivering
Results.
Results that realize long-term customer objectives
Results that build ongoing relationships by fostering
dialogue and enabling interaction between
companies and their customers
Results that are achieved through flawless
execution
Results that increase efficiency and reduce costs
Using a special combination of people, processes,
technologies and competencies, Budco Results are both
tactical and strategic:
Tactically, our work is consistent, predictable,
sustainable and measurable. Only through the
application of stringent metrics can we maintain our ISO
9001:2000 standing and continue to earn the high
marks that consistently characterize our performance.
Strategically, we understand and participate in the goals
of our customers. Whatever the focus – lowering costs,
improving customer loyalty, enhancing revenue,
increasing sales ― Budco knows how to make a critical
difference in outcome, which is what marketing is
all about.
Everyone is proud of our ability to deliver Results for our
customers. At Budco, Nothing Else Matters is our way
of life.
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Attachments
Required proposal forms and information.
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Financial Statements
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Attachments D and E
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Attachment F
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Attachment G and Addendums
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Terms and Conditions
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