IMD Presentation v5

InsightMarketData © 2015

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BETTER DATA THROUGH COMPETITION


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ShoppersShoppers are

desperately looking for ways to save money on things they buy every

day.

Independent RetailersSmaller “Mom & Pop”

retailers are fighting for their lives against giants

like Wal-Mart

Brick and Mortar StoresChallenges on All Fronts

Product ManufacturersManufacturers spend

billions on advertising, yet cannot effectively influence individual shoppers when it

matters most

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The SolutionIt’s All About Better Data and Better Targeting

Better DataWe can precisely measure individual shopper behavior so we know exactly what it takes to get each shopper to switch from one product to another.

Better TargetingWe deliver that data to manufacturers in real time so they can optimally influence a shopper to buy their products right when they’re in the aisle deciding what to buy…and knowing which product is in their hand.


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This thing

Shopper ExperienceRingside Shopper

Ringside App

Scan UPC Checkout

Competing

Incentives

Immediate Savings

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ShoppersRingside incentives are easier to getMore incentives mean more savings

Faster and easier to redeemShopper is anonymous so privacy is protected Retailers

Incentives make products cheaper so shoppers buy morePromote high margin in-house brands Improved shopper experience, no paper to hassle withRingside incentives paid in days, not monthsNo extra POS hardware so no extra cost to the retailerDetailed shopper behavior data/reportsManufacturers

Incentives are optimized to each shopperTrigger impulse purchases & cross brand marketing

2 hour coupon life = complete budget control Hit redemption rates for the lowest possible cost

No coupon fraud React to competitor moves in seconds Market Researchers

Infinite granularity with shopper transaction dataContinuously updatedNear real-time behavior historical delta reporting

All Parties BenefitRingside Shopper

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Shoppers = Product100 Million Americans use paper coupons regularly

40% of enthusiastic coupon users earn over $70k 64% of all adults own a smart phone

Retailers = Production FloorGet core Ringside integration free (add fees for services) 7,000 retailers currently using Retalix system (plug n play)35,600 supermarkets in the U.S.1.1 million other retailers Manufacturers = Customers

Pay 1% to 5% of face value for EVERY coupon presented

Pay for data, analytics, and integration consulting 122,000 food manufacturers in the US.

$567b in super market sales $177b in club storesTop 100 CPG’s sell $67 billion wholesale

Not just Food: Total consumer marketplace: $2 trillion Researchers = Customers36,000 “Market Research” businessesIndustry Revenue > $21 billion in US alone

Market AnalysisRingside Shopper

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Go To Market StrategyGet the Underdogs in the Ring!

Regional Manufacturer

sEnroll regional CPGs and DSDs through

Trade Shows, Retailer Intro, Customer Reps,

Direct Calls

Smaller Retailers

Initially target at-risk independent store

chains through POS reseller Introductions,

Trade Shows, and Customer

Representatives

Shoppers

In-store Promotions. Only as we reach

saturation do we add other advertising

Market Researchers

University connections, Trade

Shows, Manufacturer Introductions


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CompetitiveAnalysis

No one uses manufacturer in store real-time competition, so

no one else can acquire the precise shopper behavior data

that Ringside does

Companies App Type Services Offered NotesGroupon, Living Social, The Coupons App, Shopular

Internet discounts and push coupons for local retailers

Users register online and are pushed one or more daily specials via email or phone app. Typically offers are an opportunity to purchase a discounted voucher.

No CPG coupons however Groupon recently turned down a $6 billion purchase offer from Google and instead raised $1 billion in VC investment. The Coupons App primarily offer deals for stores, restaurants, and gas stations rather than products. You can scan a barcode but it will only look to see if there is an existing coupon already loaded into the system, but it’s primarily delivering retailer coupons and not CPG product coupons.

Cellfire, MDot, AOL-Shortcuts, Google-Zavers, Coupons.com

Shopper-Card linked static Internet coupons (online only, no mobile app)

Register your preferred shopper card with the company, select from the static coupons online and they will be associated with your shopper card to be redeemed the next time you go shopping. Online only…no mobile apps

Coupons are non-competitive and not dynamic. Shopper must seek them out online rather than getting relevant competing coupons presented at time of decision. Little opportunity to discover shopper preferences or to measure loyalty. MDot is the white label version of the Shortcuts solution that can be branded to a specific client retailer brand and website.

Valpak, Coupon Sherpa, Lemon, Cellfire, astroClipz, Yowza, ShopText, mobileStorm, RetailMeNot

Mobile GPS / location-based retailer discounts.

Location based coupons that use a phone’s GPS to present coupons from nearby retailers.

No CPG product specific coupons. Coupons afre frequently “pushed” to the phone when in proximity to a retailer.

Google Shopper, Amazon Price Check, RedLaser, Price Check, ShopSavvy, SnapTel, Shopper

Mobile price comparison apps

Price comparison in different stores/online. Other companies listed in the notes also offer shopping lists, recipes, and ingredients.

Price comparison between retailers. No CPG product specific coupons.

Grocery iQ, Pushpins Grocery list app w/ some FSI style static coupons

Primarily a grocery shopping list app. Also supports print-at-home coupons and/or some shopper-card linked coupons (where supported).

Grocery iQ also has a list of existing/static coupons a shopper can look up on the company’s website (or via their app) to then print at home or to be linked to their shopper card. Pushpins has weekly flyer coupons (static/non-customized) that can be selected and linked to a shopper card.

Where Store locator A social app for tracking your favorite places and for driving traffic to places and stores.

Not a coupon app as far as I can tell but included here because some have asked about it.

Grocery Smarts, Cartwheel Mobile circular viewer for some retailers

Displays electronic store circulars tracking items, prices and static coupons from specific retailers.

Grocery Smarts displays electronic circulars for Target, Walgreens, CVS, Rite-Aid and Wal-Mart. Coupons are static and not customized.


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Patent #7,555,444

Dynamic time-of-purchasing-decision

incentive system and method

Perfect Targeting

and timing no one else offers.

Competition Data

Others already in the space won’t add competition because existing big manufacturer clients won’t let

them

POS Integration

Working partnership with

Retalix POS systems

Competitive Advantages(Aside from just being smarter and better looking)


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MSI

Ringside Shopper App on Android and iPhone

Ringside Cloud Engine running on Amazon's EC2

Retail deployment in a 40,000 sq ft grocery store

$10,000 in data sales to Marketing Science Institute

(good numbers for such a limited deployment)

Patent #7,555,444 Issued

Retalix ScanMaster POS system integration

Over 1000 downloads and hundreds of active users

Manufacturers waiting for the full engine & dashboard

TractionEven though IMD is largely bootstrapped and still seed stage

(With more retailers on the waiting list)

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FundingThen and Now

3 milestoned tranches of $300k on a pre-money valuation of $2.5M Raising $900k Seed

Raised $100k from friends and family

Great Lakes Innovation Development Enterprise (GLIDE)Awarded $100k from Regional Development Fund

Add features to system and add Retailers and Manufacturers Hire key executives and staffMarketing

Use of Funds:


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The Ringside Team

Inventor of the Ringside system with 25 years of software and systems architecture experience

Jim WilsonFounder

Former Assistant Chair of Neurobiology at Northwestern University with expertise in information processing, neuroplasticity, machine learning, and self-organizing systems

Noah Schwartz PhDResearch Team

Expert in personal branding, social networks, new product development, and coupons in mobile marketing

César Zamudio PhD Research Team

Former VP of Entrepreneurship at Ewing Marion Kauffman Foundation and the founding CMO for JumpStart Inc. venture capital fund

Thom RuheBoard Advisor

Expert in shopper behavior and motivation, with a Masters in Economics focused on modeling, price theory, and behavioral economics

Paul Mills PhDResearch Team

Formerly a Sr. Director of Shopper Insights and Global Market Trends Levi Strauss, the Director of Consumer Insights for The GAP, Inc., and an Account Manager at AC Nielsen

Andrew VignoloRetail Advisor

35+ year IT expert with broad experience in all aspects of IT within many different industries including Manufacturing, and Consumer Goods

John SchindlerTechnology Team


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THANK YOUIf manufacturers are willing to spend billions every year on inefficient paper coupons just

imagine how much they would spend on something as precise and timely as Ringside

Shopper!

IMD Presentation v5

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