1. Mixed Media Technologies, Inc Presented By Stacy Plotnick Shawne Shaffer Bimal Patel Tom Donaldson Tammy Harvey

2. Overview of Presentation  Introduction  Evaluation of Christmas Promotion  Competitor Analysis  SWOT Analysis  Recommendation for New Marketing Strategy  Q and A Session

3. Introduction  Mixed Media Technologies, Inc. (“MMT”)  Independent Retail Store Managed by Josh Sullivan  Products/Services  High quality equipment for multimedia presentations (color scanners, video & digital cameras, video/audio editing equip and projection equip)  Video Editing Services  Each job receives individual attention  Free graphics consultation service and professional advice  Special Orders per Customer’s Request

4. Introduction  Location  Near Area Similar to Downtown Philadelphia  Near Large University (Penn, Drexel, Art Institute of Philadelphia)  Current Target Markets  Area School Boards  Industries  Universities  Serious Amateurs/Professionals

5. Introduction  Sales Staff  4 Full-Time Clerks  2 Outside Sales Reps  Revenues  Majority of Sales Received via Phone or Mail  Minimal Over the Counter Sales  Video Editing Services to Industries  25% Discount Offered to Customers Purchasing $2,000/year

6. Introduction  Challenge:  How can Josh Sullivan increase MMT’s profits and sales?  Failed Christmas Promotion

7. Evaluation of Christmas Promotion  Goal Of Promotion  Expand sales during Christmas season  Sell at least 100 digital cameras  Strategy  Pre-Christmas sale of 2 popular brands of digital cameras  Discount prices to compete with discount stores  Outcome  Only 5 cameras were sold!

8. Evaluation of Christmas Promotion Why this Strategy? Trade experts suggested that sales of digital cameras in the low price and low quality range were up 200% from last Christmas

9. Evaluation of Christmas Promotion Reasons for failed Promotion: Promotion is targeted to general public vs. MMT’s target market of Serious Amateurs and Professionals 4Ps do not satisfy general public or MMT’s target market Strategy to sell low cost, low quality digital cameras is based on wrong target market and inappropriate marketing mix Target Market Marketing Mix Marketing Strategy +

10. Evaluation of Christmas Promotion Product - Does product satisfy target market? NO!  MMT only offers two brands of cameras  General Public usually shops at larger retail outlets that offer a great variety of digital cameras Place - Does MMT reach the target market with this promotion? NO!  MMT’s shoppers are Serious Amateurs and Professionals, not general public  General Public shops for Christmas gifts in malls or large, suburban shopping center

11. Evaluation of Christmas Promotion Promotion - Does promotion tell target market that this product is for them ? NO!  Local Newspaper ad in the “Suggested Gift Giving” section gets lost among discount store ads - mass selling  Big signs in the store windows targets current MMT shoppers who want higher quality - sales promotion Price - Does price meet target customers’ expectations? NO!  Price reductions still not comparable to large discount stores that have economies of scale  General Public would not go to specialty shop to get best price on a popular brand of digital camera

12. Competitor Analysis: Products recap  Services Video Editing Video Production Graphics Consultation Audio Editing  Goods Sold Still Camera, Video Camera, Digital Camera 35mm, Electronics, and Overhead Projectors Beta cam tapes, recordable CDs Scanners for computers Low range digital cameras for PCs Acetates used for color printers Video and audio editing equipments.

13. Competitor Analysis: Manufacturers Goods Sold can be broadly classified into Photography products and Presentation products. Leading Manufacturers for each category are: Cannon Nikon Hitachi Sharp Panasonic Sony Samsung Kodak NEC Epson  Photography Products Proxima Infocus 3M Phillips Dukane JVC nView ADTech Polaroid Epson Sony  Presentation Products

14. LocalNational Competitor Presentation Product CompetitorsPhotography Competitors MMT's Current and Planned StrategyAVHQ/AVSC/APS/ITA Strengths(+) Weaknesses(-)Ritz Camera Strengths(+) Weaknesses(-) Target Market Amateur/Serious Photographers(+) Educational Institution(+) Industrial Presenters(+) Educational Institution(+) Industrial Presenters(+) Amateur/Serious Photographers(+) Product Amateur/Serious Photography Equipment/Supplies(+) Presentations Products& Services(+) Audio/Video products & Services(+) One Stop Sales/Rental/Repair of AV and presentation products(+) Nationwide Conference Center and Show support centers(+) Competitors offer integrated services with the place and meeting place like the conference room etc(+) Web cast Products and Services (+) Online Meeting Products and Technical Support (+) highlights company experience and professional/trained staff(+) Amateur/Serious Photography Equipment/Supplies Place Single Location (-) Prime Business Location(+) No Online Presence(-) Multiple Location (+) Prime Business Loc(+) Online Presence (+) Multiple Locations(+) Prime Business Locations(malls) www.ritzcamera.com (+) Promotion $2000 Annual Sale Discount (+) Free Graphics Consultation (+) Online PromotionsFranchising Promotion Advantages Price CompetitiveHighly Competitive (+)Moderate with personal attention Competitive Barrier Cannot compete in New Media technology like Flash ppt (-) Cannot compete with nationwide service providers(-) Cannot compete with integrated service providers(-) Loyal/returning Customers (+) Established customer for local competitor means more resistance in penetrating markets(-) Personal attention becomes an expensive deal(-) More familiarity among public(+) Big Advertising budgets (+) Higher Variety of products (+) Likely Responses More Advertising Competitor Analysis: National Competitors

15. Competitor Analysis: Regional/Local Competitors LocalRegional/Local Competitor Presentation Product CompetitorsPhotography Competitors MMT's Current and Planned StrategyTELAV/AVC Strengths(+) Weaknesses(-)Winnipeg Strengths(+) Weaknesses(-) Target Market Amateur/Serious Photographers(+) Educational Institution(+) Industrial Presenters(+) Educational Institution(+) Industrial Presenters(+) Amateur/Serious Photographers(+) Product Amateur/Serious Photography Equipment/Supplies(+) Presentations Products& Services(+) Audio/Video products & Services(+) Sales and Rental of AV and presentation products(+) Smart Board Integration Technology(+) Simultaneous Interpretations(+) Amateur/Serious Photography Equipment/Supplies Place Single Location (-) Prime Business Location(+) No Online Presence(-) Multiple Locations (+) Prime Business Loc(+) May/May not be online Multiple Locations(+) Prime Business Locations(malls) May/May not be online Promotion $2000 Annual Sale Discount (+) Free Graphics Consultation (+) Price CompetitiveModerate prices Competitive Barrier Cannot compete in New Media technology like Flash ppt (-) Cannot compete with integrated service providers(-) Loyal/returning Customers (+) Purely regional Likely Responses More Advertising

16. Competitor Analysis: Potential Competitors LocalPotential Competitors Presentation Product Competitors Photography Competitors MMT's Current and Planned StrategyImpactbuilder.com Strengths(+) Weaknesses(-) Leasing Manufacturers Strengths(+) Weaknesses(-) Sellers of Low end digital cameras with good photo editing software Target Market Amateur/Serious Photographers(+) Educational Institution(+) Industrial Presenters(+) Educational Institution(+) Industrial Presenters(+) Educational Institution(+) Industrial Presenters(+) Amateur/Serious Photographers(+) Product Amateur/Serious Photography Equipment/Supplies(+) Presentations Products& Services(+) Audio/Video products & Services(+) Online Flash Presentation preparation Service(+) Leasing new and refurbished presentation products with repair services(+) Low to mid range digital cameras(+) High quality photography software(+) Place Single Location (-) Prime Business Location(+) No Online Presence(-) Purely Online (+)Single Location(-) Important Business Contacts (+) Single/multiple locations(+) Promotion $2000 Annual Sale Discount (+) Free Graphics Consultation (+) Free TrialFree I year repair contractLucrative payment plan Price CompetitiveCompetitive ($245/ppt)Highly Competitive Competitive Barrier Cannot compete in New Media technology like Flash ppt (-) Likely Responses

17. SWOT Analysis: Strengths  Growth in Digital Media Market  Location: Metropolitan Area & Universities/Businesses  Knowledgeable & Persistent Customer Base  Development of Amateur Photo/Video Market  High Quality Product Lines & Personalized Services  Increased need for alternatives to face-to-face communication including flexible media technologies

18. SWOT Analysis: Weaknesses  Inability to Compete with Larger Discount Stores  Incapacity to buy discounted large amounts of high quality equipment  Companies Recent Sluggish Spending on Upgrades of Existing Media Systems  Failure to Make Gains in Inexpensive Digital Camera Market  Lack of Focused Promotions towards high-end Media Services & Products

19. SWOT Analysis: Opportunities  Over all Increase in the Mixed Media Market  Growth of Amateur Digital Media Market  Development of Amateur Video Editing Market  Increase in Mixed Media Video Conferencing  Increasing Potential Customer Base  (Accessibility to Technology to the Average Consumer)  Academic Reliance on Media Technologies  Trend in Businesses Outsourcing Specialized Media Needs  Establishing Online Presence Offering Products and Customer Support

20. SWOT Analysis: Threats  Technological Advances Over Shadowing MMT’s Expertise and Experience  Large Discount Stores ability to Undercut MMT’s Prices by Economies of Scale  Globalization of Business Through Internet Sales  Advances in Personal Computer Applications and Hardware Allowing Advance Editing and “Dark Room” Capabilities by the Amateur Consumer

21. New Marketing Strategy  Position MMT as a high quality, full service audio visual rental/sales company  Supply equipment and associated services for presentations, conferences, conventions and business meetings  Continue to Offer High Quality Digital Cameras  Product Development, e.g. offer new products lease, rent and service to current markets.  Hire additional technical support services personnel to differentiate MMT from competitors

22. New Marketing Strategy: Product  Sales: Lease/Rent/Sell high quality audio visual equipment  Cameras  Audio Recording Devices  Overhead Projects  LCD Data Projectors  35mm Slide projectors  Video Projectors  Screens/Monitors (Plasma)  AV Accessories (e.g. laser pointers, flip charts, projector stands)  Used Equipment  Services: Provide services to enhance buyer’s enjoyment of the product offerings  Pick-up and delivery of all products free of charge  Offer Set-up/Break-down and operator services for presentations on an hourly basis  Establish a product support e-mail address for technical questions  Offering a free loner while a piece of equipment is being serviced

23. New Marketing Strategy: Place  Maintain downtown location  Send support staff and service staff to work in-house at customer locations  Establish a web-site where customers can learn about equipment and services and place orders on-line

24. New Marketing Strategy: Promotion  Business to Business promotion  Personal selling (important in a business professional service offering such as the consulting services.)  Sales coupons for students and teachers at local universities  Volume and frequency discounts  Yellow Pages  Flyers  Advertise Online at Rental.com

25. New Marketing Strategy: Price  Offer competitive prices with discounts for high volume customers taking into account entire product mix, e.g. service  Businesses tend to be less emotional with buying and look more to price  Service offering, if successful, will enable MMT to increase prices as demand for product/service mix increases

26. Huuh ! We have Done it Any Questions ?