Business

Case

December 2008

12/04/08 1
 Company Purpose
Brandawhere will give brick and mortar
stores increased control over the
representation of their brand, and
businesses, across an ever
expanding universe of online
mapping and mobile location aware
environments.

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 rKing
Burge

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 What Is It?
Phase 1 (first 12-24 months). A hands on
consulting service provided to brick and
mortar retailers to help them better
market their businesses on mobile location
aware devices
Phase 2. (24 months +) The consulting
service will grow into a technological
system and exchange for the purchase,
placement and measurement of business
listings on mobile location aware devices
similar to the ad networks currently in
existence for the tethered web.
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 Why This Business is
Needed
• Consumers are increasingly
discovering businesses to patron
through the use of mobile devices
and online mapping
• There are thousands of popular
mobile and online map finding
services, and many new ones being
introduced each day.
• Retailers would need to spend
significant time and resources in
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Be found with BrandAwhere.
Different Ads, Different Goals
Reach/Awareness

Tell them about

Traditional Media yourself, create an
image

Give them more details

Online Media and sell virtually

Help people find the

nearby store and brands
they know and trust
Disposition & Propensity for Action

Be sure they can find you the first time, all the time, and when the
moment is right.
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 Why Now
Some unprecedented events quickly moving
mobile location awareness into
mainstream
• GPS chipset prices plummeting to $1-5
versus $10-15 just 18 months ago,
location awareness finding its way into
more and more devices
• PND sales growing 100% year over year
• 10 million iPhones sold, all with location
awareness capabilities front and center.
• Rapid adoption of Android platform to
further support build out of cross device
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How big is this opportunity?

•72 million users, or 44% of the online population

use online maps (May 2008)
• 17 million users or 7.5% of all mobile phone
subscribers accessed maps via a mobile device
(May 2008)
• In 2008 there will be more new personal
navigation devices sold than new cars in the
United States (est PND sales 20 million vs auto
sales of 13.8 million).
• Sales of personal navigation device in the U.S.
grew ~100% 2007 vs 2006
• New phones equipped with GPS expected to
grow from 240 million in 2008 to 550 million
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12/04/08
 Where is Location Awareness Now?
Category Leading Players Latest Stats Navigation or
Tracking
Ready
Garmin 7.6M* sold in U.S. in 2007 100%

TomTom 9.5M* sold in U.S. in 2007 100%

Vehicle ~7-10% new car take rate 100%

Manufacturers Available in ~70% of
vehicles sold*
In ~3% of all U.S. cars
ATT (GSM) 70 Million (subs) Small but
growing fast,
T Mobile (GSM) 28.7 Million (subs) 300% CAGR*
Verizon (CDMA) 65.7 Million (subs) Nearly all with
GPS, but not all
Sprint (CDMA) 53.8 Million (subs) app enabled

*Sources:
12/04/08ABI Research, Navteq, Garmin, TomTom SEC filings 10
 Fast Growing New Ad
Vehicle
That doesn’t yet know it’s a prime advertising vehicle…

Medium Millions
U.S. Mobile Phone 225
Subscribers 220
U.S. Internet Users 184
Magazine 112
U.S. TV Hourseholds 72 ABI: 900
Monthly Online Maps 64.8 million GPS
Users 53 units WW
Cable TV Households 17-24 by 2012,
Newspaper Readers 7-8 with 560
2008 PND Sales Estimate million in
Active U.S. In-Dash Nav phone
Systems handsets

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 Current Problem
The business listings in many of the existing
online and mobile map applications are
often inaccurate, incomplete and missing
highly relevant marketing messages of
value to the consumer.
As a result:
• Retailers miss sales opportunities.
• Consumers can’t easily find what they’re
looking for a critical time, when they’re
ready to buy.
• Brands are not well positioned or
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 How The Issue is Addressed
Today
Today retail businesses are largely at the
mercy of others to get their business
listings right, and are not being pro active
about managing their presence.
But when they don’t get it right there is a lot
to lose as customers may:
• Postpone or forgo the purchase
• Go to a competitor which is more readily
findable
• Travel to less convenient locations, often
hurting chances for repeat business
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 BrandAwhere Solution
Database
Process for collecting and
updating retail location and
store specific marketing
elements
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Web Server
Storage and managed delivery of data
Provide no cost added value
to entire ecosystem of both online and
service to ecosystem of service
offline providers of location aware
providers
services
 BrandAwhere - Product Offering

Services Description
Source Listings Help businesses gather data about the whereabout and
key information regarding their retail store presence and
create a system for making the process easily repeatable
QA Listings Help businesses clean up and verify details about their
listings data including geo encoding accuracy
Represent Client Market the listing to the industry including:
Listings to GeoWeb •cell phones mfg
and Related •personal navigation device mfg
Industries •in vehicle navigation systems OEMs
•map makers
•online map platform provider
•app developers
•directory assistance providers
Rich Listing Offer Expand on core listing to better “sell” the business
including client driven descriptions, graphics add ons and
Map SEO Offer offers
Manage the businesses presence on the geo web for
optimal consumer discovery through map and local
searches

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 Hypothetical Scenario

Total Stores in Operation:

3,456

New Store Openings:

2006: 175 stores
2005: 173 stores

Correct Listing
Incorrect Listing

Missing Listing

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 Many Missed Sales
Opportunities
Source Accurate Inaccurate Missing Total
Incorrect
Google 3,120 286 50 or Missing
336
Microsoft 2,897 483 76 559
Yahoo 2,991 385 80 465
Navteq 2,650 569 237 806
Teleatlas 2,602 544 310 854
Nokia Maps 2,941 380 135 515
Top 10 28,591 5,012 957 5,969
Mobile Map
Apps
Total 45,792 7,659 1,845 9,504

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 Base Case Cost/Benefit
Even if just one person finds and has one new location visit for each previously
missing listing, Sonic still comes out ahead.
Cost/Benefit
Revenue
Gross number of missed listings 1,845
Number of missed store visits (1 1,845
per listing)
Typical Revenue per Store Visit $10
Directly recouped revenue $18,450
Expense
Total Stores Represented 3,456
BrandAwhere Annual Fee Per Store $5
Total Sonic Expense ($17,280)
Net Benefit to Sonic +$1,170

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 Significant Benefits For
Advertisers
Assumpti Scenario Scenario Scenario
ons #1 #2 #3
Missed Sales 1,845 1 missed 2 missed 3 missed
Per Missing missing sale per
Listing
Inaccurate listings
7,659 listing
10% missed 15% 20%
Listings sale per
Missed Sales % $10 per
Incremental listing
$26,109 $48,388 $70,668
Rev
Cost sale ($17,280) ($17,280) ($17,280)
Benefit $8,829 $31,108 $53,388

As usage of mobile location aware devices increases, so does the value.

Reflects Direct Sales Benefit Only: Doesn’t include benefits related to repeat
business, referrals, word of mouth, happy customers

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 Avg. Sales Ticket
Average Revenue Per Sale

Visa Average In Store Transaction $70

Starbucks <$4
Quick Service Restaurant $9
Movie Theatre $12
What is the
Hardware Store $16 value of a
Barnes and Noble $27 new
Retail Clothing (Women) $50 customer
visit?
Grocery $98
Jewelry Store $182

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 How It Will Make Money:
Part 1
• Retailers are charged an annual fee per
retail store in operation .
– Example Burger King has 7,458 U.S. stores in
operation (11.3k including Int’l).
– Cost to Burger King for services are at a rate of
$5 or $10 per store
– Annual Burger King Revenue to BrandAwhere:
@$5: 7,458 x $5 = $37,290 per year
@$10: 7,458 x $10 = $74,580 per year
• Fee will vary on customer value
• There are approx 14 million brick and
mortar retailers in the U.S.
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 How It Will Make Money:
Part 2
Phase # of # of Rate Annual
Stores visits Revenu
per e
Part 1 Fixed 7,458 store/yr
12 $10/stor $74,580
Fee (1/mo) e/yr
Part 2 Cost Per 7,458 365 (1 $5/visit $678,00
Visit per day) 0

Widespread adoption of mobile location awareness and connected devices

will growth curve seen on the web and provide the scale needed to support
a pay per transaction model.

Revenue potential for next generation is nearly 10x that of fixed fee model
Burger King example
•Burger King has 11.4 million customers daily
•Drive 1 new visit per store per day = just .06% of customer volume
•Burger King pays $5 per lead
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Now Time Future

Fixed Fee
Cost Per Lead/Visit
$10/store/yr
$5 - $50 per lead

Post Click
Store Visit
 Mobile Application
Ecosystem
• The mobile location aware application
marketplace needs a revenue model.
• Like the web, it’s unlikely that consumers will
directly pay subscription fees for these services,
so an ad supported model may be needed
• All “finding services” including mainstream
personal navigation device manufacturers would
benefit from the creation of this business and the
revenue share it could create… not dissimilar to
many small vertical web businesses support
themselves via Google AdSense

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 Summary
Current System: Brick and mortar store
information is one of many pieces of
geo information gathered by map
makers.

New System: Brick and mortar store

information is marketing controlled
and paid for by those that benefit
most from being found… businesses.
12/04/08