134th Street Midnight Madness Sale

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Jordan Retro XII Midnight Madness SaleFebruary 13, 2004

The Air Jordan XII (12) was originally released in November 1996 – the season Michael would lead the Bulls to their 4th NBA Championship despite not winning the MVP trophy. The shoe was the first of its kind to use Zoom Air cushioning technology and the design was inspired by the flag of the Japanese Army.

The latest installment in this line of releases commenced last Friday, February 13, with the launch of the Jordan 12 (playoff edition) in black/white. It marked the fourth J12 re-release and the first 34th Street Midnight Sale of 2004.

The following report provides an overview of our marketing support and also addresses the event’s efficacy, retail functionality, overall performance and any areas of improvement.

Brief

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Event Logistics

Duration: 12AM – 2AM Substantial line began forming at 9:00PM

Allocations: Men’s – 392Kid’s – 403Women’s – 60

Reserved Pairs: Almost 150 pairs, men’s & kid’s, were reserved in advance.

On-Site Support: DJ Chuck Chillout 11 NYC Ambassadors 300 Surveys distributed to shoppers Jordan Trivia: 4 game giveaways Bounce back discount cards

distributed

The line of shoppers outside stretched across 33rd Street for most of the event.

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Marketing SupportRadio Buy

Leaseline Poster

In-store display of men’s and women’s J12 styles and shoe lace hook-up.

Fliers

4,000 distributed as bagstuffers

1,000 distributed as external handouts

Collateral Materials

20 :60 spots Wed – Fri 16 :10 Promotional Mentions Audio

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Performance

$46,000 during 2 hour Midnight Madness sale

602 Jordan XIIs sold:• 257 Men’s (65% liquidation)• 336 Kid’s (83% liquidation)• 9 Women’s (15% liquidation)

$99,380 Total Saturday sales (+270% LY)

350+ Attendees(Modell’s Midnight Sale in Times Square garnered only 60 people!)

Registers worked full-time as more than 350 people packed the store, oftentimes buying 2 – 4 pairs at a time.

*As of 12PM Hot Count on Saturday

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Financial Summary Total Sales: $46,000.00

Gross Margin: $23,891.10

Radio Buy WWPR Power 105.1 $9,180.00Fliers (1,000)

Bagstuffers (4,000)Posters (4) $339.20

SUBTOTAL $9,644.20

Labor $800.00Commission $1,000.00

Entertainment DJ Chuck Chillout $600.00

SUBTOTAL $2,400.00

TOTAL $12,044.20

Promotional Costs

$125.00Collateral Materials

Operational Costs

Footaction Associates

TOTAL EXPENSES: 12,044.20$ MARGIN POSITIVE: 11,846.90$ ESTIMATED ROI: 4*1:4 Ratio - Every $1 spent brought $4 in return.

Men's J12 $64.88Retail $134.99Profit $ $70.11IMU % 51.94%

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75%

3%7%

5% 10%

How many pairs of shoes do you own?

Where do you shop for most shoes?

How did you find out about the Midnight Sale?

2%23% 33%

20%13%

10%

47%

36%

7%7% 3%

Key Learnings

1 – 25 26 – 50 51 – 100101 – 200 200+

FA Mom/PopFoot LockerDepartment Store Other (Finish Line, Web, Niketown, Champs)

Someone Told Me Radio SpotWalking ByFA Always Has Them FA EmployeeFlier

In support of future activities, our NYC Ambassadors distributed 300 unscientific surveys to garner the FA shopper’s perspective on a number of topics.

(NOTE:110 Respondents. 68% Female, 32% Male, 22% Starclub Gold Members.)

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12% 11% 5%

62%

11%

XII Low

IIXIXIV

VII

What radio station do you listen to most?

Which Jordan launch are you most excited about?34th Street DJ hosted a Jordan Trivia game while shoppers waited in line. Winners received a copy of “Street Hoops” video game by Activision.

Key Learnings

2%59%

36%

2%2%Power 105.1 HOT 97Z100WBLS None

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Confirm size allocations and ensure receipt beforehand.Store reportedly “missed out” on $10K in sales due to lack of appropriate small sizes in Men’s and Kid’s.

Reserve-A-Pair Regulations.R-A-P product must be picked up during the first hour of event. Beyond that, it hinders sales-force and aggravates customers.

Complementary accessories and apparel are still key.In order to truly raise the bar, this year’s efforts will need to focus on up-sales and incremental purchases beyond just Jordan footwear.

Starclub Gold Education & EnrollmentRoughly 22% of event attendees were Gold Members. Ambassadors and Associates passed out Starclub forms to enroll new members and future events will continue to stress this initiative to potentials.

CompetitionThe event at Modell’s dwarfed in FA’s shadow but we should definitely expect other competitor’s to imitate. As midnight options increase, we will need to enhance our events.

Please direct any questions, comments or corrections to Adrian Parker

Improvements