2Agenda Introductions Joe Morris, NTRA Advantage John Deere attendees Current SituationBusiness LandscapeCustomer RelationshipsSales OpportunitiesCompetitionJohn Deere Advantages and Unique ValueThe “Main Thing”Account Growth Plan & Strategy NTRA AdvantageQuestions
3Current SituationThe NTRA is the league office for Thoroughbred Racing located in Lexington, KYMembership is made of the following organizations60 member racetracks across the U.S. covering nearly all major markets.Industry membership organizations (e.g. AQHA, USEF, USTA, etc.)State associations for horse owners & breedersEquine facilities (e.g. farms, training centers, veterinary clinics, etc.)Position and promote John Deere as the exclusive equipment vendorNTRA owns and manages a dedicated “group purchasing” sales force that assists John Deere in generating business from the industry. The NTRA Advantage sales staff visits member farms, tracks, and attend equine events to help approved association members understand the John Deere equine programs.$370M since Started out with tracks, added full-time program, added coupon program.
51st Time John Deere Customers Current Situation1st Time John Deere CustomersFor FY2009 and FY2010, equine coupons redeemed and matched with CKC, showed that 52% of equine purchases made were by 1st time John Deere customers.
62010 Equine / Small Ag Tractor Sales Comparison Current Situation2010 Equine / Small Ag Tractor Sales ComparisonHP CategoryIndustryDeereEquineCompacts2.40%5.40%14.67%40<90-6.40%3.30%-4.16%90<140-3.80%1.50%-1.35%Total9.16%Confidential & Proprietary
7Customer Relationships Equine PartnersThe NTRA ADVANTAGE Providing Member Benefits since 2001Partnered with major equine groupsAQHA – American Quarter Horse AssociationNTRA – National Thoroughbred Racing AssociationUSTA / HTA – United States Trotting Association / Harness Tracks of AmericaUSPA – United States Polo AssociationApHC – Appaloosa Horse ClubUSEF – United States Equine FederationAll member benefits programs are run out of the NTRA - Lexington KY office
12John Deere Advantages and Unique Value Full product line across the enterpriseJohn Deere dealer networkProven brand supportNTRA Advantage sales force & influenceMembers are loyal to their corporate partnersJohn Deere recognized as equipment leader in the equine industryExclusive partnership – key associations as partners & support
13The “Main Thing” – Plan to Win Take To The Next LevelLeverage our business partnerAlignment & Collaboration across the enterprise by leveraging the expertiseDifferentiate ourselves from the competitionKnowledge transfer – dealer training
14The “Main Thing” – Plan to Win Member gets Savings!John Deere gets Sale!A piece of every sale comes back to support the Industry!A Plan To Grow. Time to take it to the next level.
16Ongoing Sales ElementFor ten years NTRA Advantage has been working within the horse industry, building awareness and promoting John Deere. That effort has been successful, and will be continued through As in the past, we will use shows and promotions, industry networking, advertising and media support to position John Deere as the equipment supplier that supports the horse industry. We will be increasing our efforts and focus from shows and promotions to building relationships, and one-on-one marketing with customers. With the expertise of our current staff, these efforts will ensure our overall sales will continue to grow
17Program IntegrityNTRA Advantage wants to re-state and re-emphasize the importance of program integrity with our John Deere program. It is and always has been the intent of this program to qualify members and make sure only full-time equine facilities are receiving the percentage discounts through our purchasing program and part-time equine members have the opportunity to utilize the coupon partner program.With the ongoing expansion of our program and with the current expansion of our sales force, we have created a centralized audit function to make sure our program integrity stays at its highest level.Access numbers can only be issued by sales reps after they have spoken to the member, and qualified them as a full-time equine facility. This information, previously logged on paper, is now added to the NTRACK database.Partner coupons can only be issued by sales reps after they have spoken to the member, verified their membership has been valid for more than 90 days and added them and membership information into NTRACK.All sales reps will get final approval from Joe Morris on any questionable farms. Jade Cook and Vicki Baumgardner, in the Accounting/Audit department, will monitor the central office. Jade and Vicki will officially inspect the records. Dwight Ange from John Deere will have access to all records pertaining to coupons issued.With anticipated growth in sales, we felt it important to formalize and centralize this procedure previously performed at the sales representative level.We will continue to monitor program integrity as this function remains our number one priority.
18United States Horse Statistics Estimated number of horses in the United States = 9.2 millionEstimated number of horses by activity:Recreation = 3,906,923Showing = 2,718,954Racing = 844,531Other = 1,752,439Estimated number of horses by breed:Quarter Horse = 3,288,203Thoroughbred = 1,291,807Other = 4,642,739Number of people participating in the equine industry:Owners = 2,000,000Volunteers = 2,000,000Direct, indirect and induced economics impacts of the equine industry on the United States:Contributions to Gross Domestic Product (GDP) = $102 BillionNumber of full-time equivalent (FTE) jobs proceed 1.4 million
19NTRA Member Statistics Racing49,000 American races7,000 Canadian races$11,416,570,000 Money wagered$1,027,731,620 Purse money5,473 Race daysSales$302,641,564 Yearlings$115,116,500 2yr olds$45,211,144 Weanlings$149,110,144 Broodmares$617,430,160 Total Horse SalesTOBA Members$8,252,860 Average net worth$1,412,500 Value of ownership in racing and breeding stock$1,327,270 Market value of primary residence133.8 average acres of farm or ranch20.3 Years with a financial interest in Thoroughbred industry3.9 miles of fencing83% Attend or graduated from college
21AQHA Member Statistics Shows3,149 Sanctioned shows878,406 AQHA show entriesRacing17,180 Starters9,113 AQHA Races$128 Million in Purse money500,000 AQHA Owners ride recreational78% AQHA members live in rural areas82% Attended or graduated college$1,060,00 Average net worth$560,000 Average real estate value21,424 Riding instructors or trainers98% Own a computer87.4% Own land39.7% Own 16 to 25 acres61% Own a full size tractor57% Maintain 1 to 5 acres of lawn
22USEF Member Statistics Shows2,800 shows per yearMembers compete in at least 6 shows per year85% are women66% have a college degree$185,000 Average income38% have a net worth over $500,000$594,000 Average market value of home40% own a farm66% 10 acres or moreOwn an average of 4 horses
23USEF Member Statistics Products Average Annual ExpenditureHorse Feed $371 millionTrailers $337 millionEnglish Tack and Saddlery $145 millionFencing $144 millionStable Supplies $132 millionEquine Medicines and Drugs $115 millionEquestrian Apparel $73 millionVitamin and Mineral Supplements $47 millionBlankets and Sheets $36 millionHorse Health Care Products $36 millionGrooming Products and Equipment $30 millionHoof Treatment $26 millionDewormers $20 millionFly Control $15 millionHelmets $10 millionLeather Care Products $7 million
24Equine AffiliationsNational Thoroughbred Racing Association’s (NTRA) is an association of associations: AQHA, USEF, USTA, HTA, USPA, EqCan, AHC and ApHC are our Key partners.National Thoroughbred Racing Association MembersAmerican Quarter Horse Association (AQHA) Members = 312,000United States Equestrian Federation (USEF) Members = 210,000United States Trotting (USTA)/Harness Tracks (HTA) Members= 25,000American Horse Council Members
25NTRA Members National Thoroughbred Racing Association (NTRA) members: 50 NTRA racetracksBreeders CupThe Jockey ClubTOBA—Thoroughbred Owners and Breeders of AmericaAAEP--- American Association of Equine PractitionersAFA-----American Farriers AssociationHBPA—Horsemens Benevolent and Protective Association:Alabama, Arizona, Arkansas, Canada, Charles Town, WV, Colorado, Finger Lakes, NY, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Montana, Mountaineer Park, WV, Nebraska, New England, New Mexico, Ohio, Oklahoma, Ontario, Oregon, Pennsylvania, Tampa Bay, FL, Texas, Virginia, & WashingtonTHA-----Thoroughbred Horsemen Association: Delaware, Illinois, Maryland, New Jersey, & New YorkTOC----Thoroughbred Owners of CaliforniaCTHS – Canadian Thoroughbred Horse SocietyKTOB – Kentucky Thoroughbred Owners & BreedersKTA – Kentucky Thoroughbred AssociationNYTBA—New York Thoroughbred Breeders AssociationCTBA – California Thoroughbred Breeders AssociationATBA – Arizona Thoroughbred Breeders AssociationWTBA – Washington Thoroughbred Breeders AssociationNJTBA – New Jersey Thoroughbred Breeders AssociationFLTBA—Florida Thoroughbred Breeders AssociationOKTA----Oklahoma Thoroughbred AssociationVTA – Virginia Thoroughbred Association
29USEF MembersUnited States Equestrian Federation (USEF) Members = 210,000American Saddlebred Horse AssociationAmerican Driving SocietyAmerican Endurance Ride ConferenceAmerican Miniature Horse RegistryAmerican Morgan Horse AssociationAmerican Shetland Pony ClubArabian Horse AssociationIntercollegiate Horse Show AssociationInternational Andalusian & Lusitano Horse AssociationInternational Friesian Show Horse AssociationNational Walking Horse AssociationPaso Fino Horse Association, IncUnited States Dressage FederationUnited States Hunter Jumper Association, IncUnited States Eventing Association, IncUnited States Pony Clubs, IncAlabama Hunter Jumper AssociationAll American Andalusian Show Horse AllianceAmerican Connemarra Pony SocietyAmerican Hackney Horse SocietyAmerican Haflinger RegistryAmerican Hanoverian SocietyAmerican Hunter Jumper Foundation, IncAmerican National Riding Commission, IncAmerican Riding Instructors’ AssociationAmerican Road Horse & Pony AssociationAmerican Vaulting AssociationAmerican Warmblood RegistryAppaloosa Horse ClubArabian Horse Owners FoundationArizona Hunter Jumper AssociationCalifornia Dressage Society, IncCertified Horsemanship AssociationColorado Hunter Jumper Association, IncColorado West Hunter Jumper AssociationCombined Eastern Shore Horse ShowsConnecticut Horse Shows Association, IncConnecticut Hunter Jumper AssociationDallas Dressage ClubDressage Association Of Southern CaliforniaEastern States Dressage and Combined Training AssociationEquestrians’ InstituteEquestrian Trails, Inc
30USEF Members cont’d Foundation for the Pure Spanish Horse Friesian Horse Society, IncGeorgia Hunter Jumper Association, IncGrass Ridge Equestrian FoundationGreater Houston Hunter Jumper AssociationGypsy Cob And Drum Horse AssociationGypsy Horse Association, IncGypsy Vanner Horse SocietyHawaii Horse Shows AssociationHouston Dressage SocietyHoward County 4-H Horse ClubsHunter Jumper Exhibitors OF OklahomaIndiana Hunter Jumper AssociationInter-County Horsemen’s Association, IncInter-State Horse Show Association, IncIntercollegiate Dressage AssociationIntercollegiate Saddle Seat Riding Association, IncInterior Horse CouncilInterior Horsemen’s AssociationInternational Georgian Grande Horse RegistryInternational Jumper Futurity/Young Jumper ChampionshipsInterscholastic Equestrian AssociationJohnson & Wales UniversityKentucky Hunter Jumper AssociationLipizzan Association Of North AmericaLos Angeles Hunter Jumper AssociationMaine Horse AssociationMarshall & Sterling LeagueMaryland Horse Shows AssociationMassachusetts Horsemen’s Council, IncMaui Horse Show AssociationMinnesota Hunter & Jumper AssociationMissoula Horsemen’s Council, IncMounted Games Across America, IncNational Hunter Jumper AssociationNational Show Horse RegistryNew England Dressage AssociationNew England Horsemen’s Council, IncNew Hampshire Horse And Trail AssociationNew Mexico Hunter Jumper AssociationNor-Cal Hunter Jumper AssociationNorth American LeagueNorth American Sportpony RegistryNorth Carolina Hunter Jumper AssociationNorth Florida Hunter Jumper Association, IncNortheastern PA Horsemen’s AssociationOrange County Horse Show AssociationOregon Dressage Society
31USEF Members cont’d Foundation for the Pure Spanish Horse Friesian Horse Society, IncGeorgia Hunter Jumper Association, IncGrass Ridge Equestrian FoundationGreater Houston Hunter Jumper AssociationGypsy Cob And Drum Horse AssociationGypsy Horse Association, IncGypsy Vanner Horse SocietyHawaii Horse Shows AssociationHouston Dressage SocietyHoward County 4-H Horse ClubsHunter Jumper Exhibitors OF OklahomaIndiana Hunter Jumper AssociationInter-County Horsemen’s Association, IncInter-State Horse Show Association, IncIntercollegiate Dressage AssociationIntercollegiate Saddle Seat Riding Association, IncInterior Horse CouncilInterior Horsemen’s AssociationInternational Georgian Grande Horse RegistryInternational Jumper Futurity/Young Jumper ChampionshipsInterscholastic Equestrian AssociationJohnson & Wales UniversityKentucky Hunter Jumper AssociationLipizzan Association Of North AmericaLos Angeles Hunter Jumper AssociationMaine Horse AssociationMarshall & Sterling LeagueMaryland Horse Shows AssociationMassachusetts Horsemen’s Council, IncMaui Horse Show AssociationMinnesota Hunter & Jumper AssociationMissoula Horsemen’s Council, IncMounted Games Across America, IncNational Hunter Jumper AssociationNational Show Horse RegistryNew England Dressage AssociationNew England Horsemen’s Council, IncNew Hampshire Horse And Trail AssociationNew Mexico Hunter Jumper AssociationNor-Cal Hunter Jumper AssociationNorth American LeagueNorth American Sportpony RegistryNorth Carolina Hunter Jumper AssociationNorth Florida Hunter Jumper Association, IncNortheastern PA Horsemen’s AssociationOrange County Horse Show AssociationOregon Dressage Society
32USEF Members cont’d Pacific Coast Horse Shows Association Peruvian Horse Breeders & OwnersProfessional Horsemen’s AssociationRhode Island Horsemen’s AssociationRocky Mountain Dressage SocietyRocky Mountain Horse AssociationSacramento Area Hunter Jumper AssociationSaddleseat & Western School League Of Greater Los AngelesSan Fernando Hunter Jumper AssociationShelby Farms Equestrian AllianceSouthern KY Team Penning Association, IncSouthern Nevada Hunter Jumper AssociationSouthwest Virginia Hunter JumperSouth Carolina Hunter Jumper AssociationTambourine VaultersTexas Hunter Jumper AssociationTri County Riding AssociationUnited Professional Horsemen’s AssociationUnited States Driving For The Disabled, IncUnited States Equestrian Drill AssociationUnited States Lipizzan RegistryUnited States Mounted Games AssociationUnited States Para-Equestrian AssociationUtah Hunter Jumper Association, IncVermont Hunter Jumper AssociationVirginia Pony Breeders AssociationWashington Hunter Jumper FoundationWashington State HorsemenWashington State Hunter Jumper AssociationWelsh Pony & Cob Society Of America, IncWest Tennessee Hunter Jumper AssociationWisconsin Hunter & Jumper Association, IncWoodside Vaulters
33USTA/HTA MembersUnited States Trotting (USTA)/Harness Tracks (HTA) Members= 25,00061 USTA/HTA member racetracksNew York Off-Track BettingFreehold Racing AssociationCapital District Off-Track Betting AssociationMSBA – Maryland Standardbred Breeders AssociationSBAP - Standardbred Breeders Association of PennsylvaniaDSBF - Delaware Standardbred Breeders Fund SBOANJ – Standardbred Breeders & Owners Association of New JerseyHHBNYS – Harness Horse Breeders of New York StateOHHA – Ohio Harness Horsemen’s AssociationISA – Indiana Standardbred AssociationVSBF – Virginia Standardbred Breeders FundISBF – Illinois Standardbred Breeders FundFSBOA – Florida Standardbred Breeders & Owners AssociationMSBA – Michigan Standardbred Breeders AssociationMSBOA – Maine Standardbred Breeders & Owners Association
34Horse Council Members American Horse Council Members 1300 Independent members450 Horse OrganizationsAHC State Horse Council MembersAHC State Horse Council Advisory CommitteeAlabama Horse CouncilArizona State Horsemen's AssociationBay State Trail Riders AssociationCalifornia State Horsemen's AssociationColorado Horse CouncilConnecticut Horse CouncilDelaware Equine CouncilGeorgia Horse CouncilGreater Houston Horse CouncilHorsemen's Council of IllinoisIdaho Horse CouncilIowa Horse CouncilKansas Horse CouncilKentucky Horse CouncilLouisiana Equine CouncilMaine Farm Bureau Horse CouncilMaryland Horse CouncilMichigan Horse CouncilMinnesota Horse CouncilMississippi State Equine AssociationNassau-Suffolk Horsemen's AssociationNew England Horsemen's CouncilNew Hampshire Horse CouncilNew Jersey Horse Council, IncNew Mexico Horse Council, IncNew York State Horse Council, IncNorth Carolina Horse CouncilOklahoma Horse Industry CouncilOregon Horsemen's AssociationPennsylvania Equine CouncilSouth Carolina Horsemen's CouncilSouth Dakota Horse CouncilTennessee Horse CouncilTexas Horse CouncilUtah Horse CouncilVermont Horse CouncilVirginia Horse CouncilWashington State Horse CouncilWisconsin State Horse CouncilWyoming Horse Council
35Industry Events January 2011 Denver Stock Show NTRA Eclipse Awards FL Farm Manager's Club MeetingWinter Equestrian FestivalHorse Shows in the SunUSEF Annual Meeting & ConventionKY Farm Manager's Club MeetingUPHA ConventionHeritage Place Horse ShowFebruary 2011Scottsdale ArabianEquine Canada Annual ConventionCV Whitney Polo TournamentAmerican Saddlebred Horse Association ConventionNational Farm Machinery ShowForth Worth Stock Show
36Industry Events March 2011 Winter Equestrian Festival Live Oak Driving CompetitionFL Farm Manager's Club MeetingFasig-Tipton Horse SaleOBS Horse SaleUS Open Polo TournementKY Farm Manager's Club MeetingBluegrass SpringAQHA ConventionTexas Thoroughbred Association Yearling SaleTTA/TQHA Annual MeetingHTA/TRA Annual MeetingApril 2011Rolex Three Day EventQuarterFest 2010Fasig-Tipton Horse Sale Apr-11 Mid-West Horse Fair
37Industry Events May 2011 FL Farm Manager's Club Meeting Kentucky Oaks and DerbyKY Farm Manager's Club MeetingHigh Hope SteeplechasePreakness StakesFasig-Tipton Horse SaleJune 2011AHC Annual MeetingFLTB Annual MeetingKTFMC Challenge Cup Golf ScrambleJunior League Horse ShowsMy Lady's Manor SteeplechaseDevon Horse ShowBelmont StakesNHRA DerbyBattle of the Saddle EventsTrack Superintendent Field DayAQHA Corporate Partner Summit
38Industry Events July 2011 FL Farm Manager's Club Meeting North American Junior & Young Rider ChampionshipsKY Farm Manager's Club MeetingFasig-Tipton Horse SalePolo in the ParkAugust 2011AQHA RacingArlington MillionWCHS/KY State FairNational Dressage Selection TrialsAnnual Hambletonian Charity Golf TournamentHambletonian Festival of RacingSword DancerNYTB Annual MeetingAQHYA World ShowNational Copper Cup
39Industry Events September 2011 Delaware Park Horsemen Classic Golf TournamentFL Farm Manager's Club MeetingTOBA National Awards DinnerKY Farm Manager's Club MeetingLittle Brown JugBayer Select World ShowOctober 2011Cal Cup DayAQHA RacingFasig-Tipton Horse SaleMaryland MillionNYTB Showcase DaySE Circuit Congressional CupAppaloosa World ShowWashington International
40Industry Events November 2011 The Royal Agricultural Fair and Horse ShowFL Farm Manager's Club MeetingBC Horsemen BreakfastBreeders' Cup World ChampionshipsKY Farm Manager's Club MeetingMBNA American Challenge Championships RacingAQHA World ShowDecember 2011Racing SymposiumNRHA Futurity
41Print Advertisements Monthly Opportunities AQHA - America's Horse & The Racing JournalThe Blood-HorseCalifornia Thoroughbred Breeders AssociationEquine Vet EducationFlorida HorseHoof BeatsIllinois Racing NewsMid-Atlantic ThoroughbredNew York Breeders, New York Sire Stakes & New York Thoroughbred Horsemen AssociationVarious State Association PublicationsThoroughbred Times & Thoroughbred Times TodayU.S. Polo - Polo Players EditionUSEF EquestrianCanada-Courrier HippiqueCanada-Equine CanadaCanada-Horse CanadaCanada-Show Trail
42Television MediaThree (3) commercial :30 units in Breeders’ Cup Challenge programming (Summer/Fall)ESPNESPN2Four (4) commercial :30 units on the Breeders’ Cup Championship broadcast (November)ABC
43Internet John Deere web banners on the following affiliations webpage:
44Social Media National Thoroughbred Racing Association - Facebook - Twitter- BlogsBreeders' CupFacebookTwitterBlogsAffiliation Groups
45Direct Mail Monthly Special Opportunities NTRA General Packets AQHA General PacketsUSTA/HTA General PacketsUSPA General PacketsEquine Canada General PacketsSpecial OpportunitiesState Association Check/Invoice StuffersRacetrack Payroll StuffersBreeders’ Cup Nominators
46E-News/E-Mail Weekly Quarterly USEF Weekend Review NTRA AQHA USTA USPA Equine CanadaCanada Provinces
47Dealer TrainingsWe will increase our efforts with Territory Managers, dealers in the territories and assist them in reaching our members. This effort alongside our joint marketing message through print, direct mail, electronic and social media will help us greater penetrate into our equine industry.
48Overall Sales GoalsNTRA Advantage’s approach to equine sales will be similar to previous years. The sales are relationship-based, with us continuing to build stronger relationships with our members, thus making it easier to sell. We will continue to focus on areas of opportunity: tracks, farms, and training facilities and part-time horse owners. This year we will continue our focus on a state-by-state approach towards setting goals and profiling and getting this information into our NTRACK database.Each sales representative will be responsible for selling and building relationships to all breeds and disciplines within their territory and will be required to visit at least 300 facilities in their territory.We will continue to attend some key events, but will focus staff on one-on-one marketing to key customers. We will be using some retired John Deere employees to help us at the shows.
49Goals Summary by Breed Breed 2011 Goal TOTAL $47,765,000 NTRA $ 8,880,000AQHA $18,605,000USEF $ 4,580,000Other $ 2,100,000Canada $ 6,100,000Construction $ ,000Tracks $ 6,800,000TOTAL $47,765,000
50Goals Summary by Rep/Region Rep Territory GoalS. Driskill SW, Tracks, Canada $13,010,000J. Lawson NE, MA, Canada $12,065,000L. Carlisle Great Lakes & SE $ 6,470,000S. Parks FL & Tracks $ 8,320,000M. Hoffman West Coast & Canada $ 2,000,000KY Split Carlisle & Lawson $ 3,920,000Construction Morris $ ,000A. Johnson NE & WY $ 1,280,000TOTAL $47,765,000
51NTRA AdvantageOFFICE LOCATION NTRA Advantage 2525 Harrodsburg Road, Suite 430 Lexington, KY Telephone:Facsimile:EXECUTIVE DEPARTMENT Joseph P. Morris, Jr. Senior Vice-PresidentOfficeHeather BrownOffice ManagerOfficeFred Vickers Director of ProductionOfficeSALES STAFF Susan ParksSales Representative(FL/Tracks Territory)CellularSteven Driskill Sales Representative(Southwest Territory)Cellular Lauren Carlisle(Great Lake/SE Territory)CellularJim Lawson Sales Representative(NE/Mid-Atlantic/Canada Territory)CellularMeganne Hoffman Sales Representative(West Coast Territory)CellularSUPPORT STAFFAnna JohnsonOfficeJade CookOfficeTaylor Porter (Intern)OfficeCreative Services C. Bryan Pettigrew Consultant - NTRA AdvantageCellular