Strategy

1. Start-up in Ukraine Strategy Operation plan

4. Offered marketing mix E-letters, banners Fully under PP control “ Service retail”, POSMs, Photobooks samples PHYSICAL EVIDENCE Regular e-communication, Customers management (by volume, value) PP, customers database, regular e-communication to TA PP Database collection, regular contacts by Sales Force Sales standards, targets, daily visits, reporting, supervision PROCESSES Web specialists Web specialists Loyal PP (Ambassadors), SP Sales Force Sales Force is required (FMCG experience is preferred) PEOPLE Web (banners), “hot offers” campaigns Word of mouth, links from SP site to PP sites, bundles Availability, visibility in Retail, WEB (links to SM pages), PP, bundled offers for new customers PROMOTION Flat Discounted offers to PP (identification by IP addresses) FLAT, commissions to Retail, discounts for PP PRICE Web PP, Web PP (served by Sales Force based on regular meetings) Key retail, PP, WEB PLACE SUPERPHOTO PHOTOBOOK PRODUCT WO WT ST SO

5. Checking strategic directions for appropriateness SO ST WT WO

7. Channel analysis: SUPERMARKETS VOLUME PLANNED (KYIV) Average sales volume is 20 books per SM per month 1,000 50 35% 144 Total 20 1 100% 1 Magellan 40 2 100% 2 Materik 20 1 100% 1 Karavan 36 2 60% 3 Billa 32 2 10% 16 Eco-market 90 5 10% 45 Fora 371 19 50% 37 Silpo 190 10 50% 19 V.Kyshenja 200 10 50% 20 Furshet Planned sales volume/month Covered SM Expected agreement to be signed SM number Chain

13. Sales Process in SM (Customer reluctant for self-service)

16. SALES PLAN: BY CHANNELS (KYIV ONLY) 5,590 5,020 4,550 3,890 3,220 2,620 2,020 1,420 250 Total 180 170 160 150 130 120 110 100 Photoschool 1,500 1,300 1,200 1,000 800 650 500 400 Ambassador (PP) 3,500 3,200 2,900 2,500 2,100 1,700 1,300 850 200 SM 410 350 290 240 190 150 110 70 50 Public 50 50 50 50 50 50 50 50 50 Current Dec-09 Nov-09 Oct-09 Sep-09 Aug-09 Jul-09 Jun-09 May-09 Apr-09

18. Rout to market 70 / 410 5% / 7% 850 / 3,500 60% / 63% 400 / 1,500 28% / 27% 100 / 180 7% / 3% 70 / 410 5% / 7% May’09 / Dec’09 Total Sale volume CONSUMERS SM PP Photoschool

20. P&L analysis (excluding fixed cost)

22. Marketing campaigns 1. For Mass market Objective: to increase demand Mechanics: to print special double-side coupon. One side: description of PHOTOBOOK. Back side: Offer to owners of coupons “Order one PHOTOBOOK till the end of May and get another with 50% discount”. Addresses of SM are indicated. This Program could be communicated to SM as additional marketing benefit for them Distribution place: maternity homes, kindergardens. 2. For Ambassadors: same mechanics could be applied

23. Marketing campaigns 2. “End of school” campaign Objective: to boost sales Mechanics: visit schools and offer PHOTOBOOK for graduates End of lessons: 25.05.09 Exams: till 20.06.09 School leaving ball: 20.06.09 Time required: 200 schools / 3 SR / 5 visits per day = 9.5 days Expected Sales volume: 200 schools x 3 classes x 30 people x 25% = 4,500 photobooks Offer is to be carefully prepared: e.g. PHOTOBOOK + T-shirt (with phaces of classmates) + Cap

25. Thank you!