LUCKYMAGAZINE INTRODUCES FLASH WHAT IS FASHION FLASH LUCKY

LUCKYMAGAZINE INTRODUCES FLASH

WHAT IS FASHION FLASH? • LUCKY, “the magazine about shopping” wants to bring its consumers a new way to shop! • Beginning in Spring 2010, Lucky will begin to collect all of the wardrobes, latest fashions, and comparitable clothing items of actresses and actors seen on HBO on demand movies or television shows such as Sex and the City • With a monthly subscription, viewers will be a click away from pausing a show or a movie, and discovering where to find the exact or similar more affordable outfit of the movie/television star.

FASHION FLASH & CARRIE Vintage Necklace similar items at Target. com $21 Metal Aviators by GUCCI $295 Snakeskin clutch ALDO Accessories $38. 99 Jersey Mini Dress by Splendid $120 www. splendid. com

PRODUCT DEVELOPMENT Investment in Fashion Flash Product Development Cost: $2, 000 [1] Advertising Cost: $ 7, 061, 434 Launch Event Cost: $45, 700 Total: $9, 094, 834 Sold to HBO for 40% of investment costs: $3, 637, 933. 6 NET INVESTMENT COST: $5, 456, 900. 4 [1] Source: research in i. Phone app development costs + speculation

PRODUCTION PROCESS • Sex and the City is not on the air anymore, however it is still in syndication. This was Fashion Flash’s biggest area to tackle. With help from the wardrobe stylist, Patricia Fields, the apparel items and outfits were collected and organized by outfit and episode. • The next step was to collect the wardrobes from Entourage which was significantly smaller. The last two series, Bored to Death and How to Make it in America are in their first season therefore these collections were the smallest.

DEMOGRAPHICS - WOMEN College/Grad Students Women Ages 18 -24 Working Women * Target Live at home with family * Live on own / Married Single Audience - Not Relevant / Wont provide substantial revenue Young Mothers Not a audience to focus on (low discretionary income) * * -

DEMOGRAPHICS CONT. Working Single Not working * Target Audience With children - Not Teenage Girls/Boys and/or older children * Relevant provide substantial revenue Young children - Women Ages 25 -44 / Wont * / Married Without children *

DEMOGRAPHICS-MALE Married - Straight Single / Men 35 -44 * Target Audience - Not Relevant / Wont provide substantial revenue Single * Gay Married *

CURRENT MARKET Market is very large due to the high # of people who watch premium cable According to Simmons report 50% of women watch at least 5 -7 hours a day HBO has over 40 million subscribers in the U. S, out of which more than 45% are women

PRODUCT SALES Consumers Advertising Competition Billboards Magazines Fashion Show Internet Special Promotions 2010 subscriptions receive 1 month free Product Sales First of its kind in the market Distribution Women 18 -44 Men 35 -44 HBO on Demand users Price $48 per year The U. S Fashion Flash shopping inspired cable add-on Products

ADVANTAGES/BENEFITS New way to shop Convenient Unique Budget friendly Easy to subscribe to, easy to use Opens door future expansion Designers, retail stores, clothing lines have a new outlet for advertising and promotion New advertising space

DISADVANTAGES/PROBLEMS Not all of our desired target audience is subscribed to HBO on. Demand Decreases target audience Fashion Flash is only available for four HBO series Must depend on a lot of outside sources for production and continuation of the service HBO Certain apparel cannot be Television series (wardrobe stylists, located in a timely manner or located at all producers, etc) Designers, retail stores, clothing lines

MARKETING PLAN Traditional Advertising. Product/Brand name awareness Non- Traditional Advertising – continue to increase awareness and increase subscriptions Return to basic traditional advertising and rely on word of mouth

PROMOTION– AREAS OF EMPHASIS Low annual subscription Similar outfits found for less! • $48/year ($4/month) • Pay in full or pay over time • Wardrobes collected from HBO series • Prices, pictures, and purchasing location Sex and the City’s wardrobe ! • FIND ALL OF OUR “FAVORITE FOUR LADIE’S” OUTFITS AND ACCESSORIES FROM EVERY EPISODE!! Created and produced by LUCKYMAG! • Created by the Shopping Expert - LUCKYMAG • FIND ALL THE INFO AT LUCKYMAG. COM

TRADITIONAL ADVERTISING • Ad will have 4 main visuals – Picture of service – “FASHION FLASH” – “Lucky. Mag” – Slogan: “THE NEW WAY TO SHOP” • Purpose – To make consumers aware and curious, want them to go research Fashion Flash – Important to emphasis connection with Sex and the City • Begins March 1 st, 3 months before launch

NON-TRADITIONAL ADVERTISING Heavy promotion starting day of launch slowly decreasing up until DVD release Theme- the movie Sex and the City 2 Begins May 27 th Same day as the release of SATC 2 and launch of FF Purpose To continue to increase product awareness, subscriptions, and to provide basis for long term marketing plan

PLANNED ADVERTISING STRATEGIES • Advertisement before every movie is shown • One commercial • Viewers will think it’s the beginning of the SATC 2 movie but it will actually be a commercial featuring the 4 lovely ladies. • Midnight Showings – heavy advertisement at main theaters • Flyer in every DVD (SATC and SATC 2) • Sponsor movie premier • Focus more on a detailed advertising campaign • Celebrity endorsements –Sarah Jessica Parker • NYC event – June 1 st

COMMERCIAL

FASHION SHOW/AFTER PARTY Sponsored by VEEV FREE GIVEAWAYS VENUE Apparel featured in SATC, latest styles and MORE!

STUDIO 450 AFTER PARTY EVENT ROOM FASHION SHOW EVENT ROOM

ADVERTISING BUDGETS Facebook, with the launch of its “Like” button, created a new form of online word of mouth. Once a user likes an ad, the publisher gets a link on the user's page and publishes it to his/her news feed; this way, his “friends” can see the ad. – Step 1: Design add Fashion Flash logo + Slogan Link to Lucky. Mag. com/Fashionflash – Step 2: Specify Target Audience United States; Females; 18 -49; English language; Keywords: Shopping, Fashion, Clothing, Clothes, Movies, HBO, Sex and the City, Trends, Style, Shop, Shoes. – Step 3: Campaign and Pricing (CPC or CPM) Payments for click in order to drive more traffic to our website. Cost Per Click: $1. 50 Daily Budget: $200 Ad runs from March 1 st until July 1 st= 123 days Total Cost: $24, 600 [Source: Facebook. com]

ADVERTISING BUDGETS Youtube is the equivalent of a major TV station at primetime, with more than 100 million visitors monthly. • $100, 000 daily fee for a homepage roadblock (Fashion Flash would take over all the banner ads on Youtube’s homepage for 24 hours) • $100, 000 required incremental spend on Youtube/Google within 90 days. • Starting May 1 st until August 1 st on 20 separate dates • Total Cost: $2, 100 [Source: Youtube. com]

ADVERTISING BUDGETS Yahoo! mail is one of the most popular free e-mail servers among our target audience. As of January of 2010, the company held the world’s largest market share in online display advertising and its website has around 1. 6 million visitors annually. • Cost Per Click: $1. 26 • Daily Budget: $30 • Starting July 1 st until November 1 st • Monthly estimates: – Times ad may be displayed: 331, 925 – Times ad may be clicked: 1, 362 • Total Cost: $ 3, 720 [Source: Yahoo. com]

ADVERTISING BUDGETS Billboard in Times Square New York City is the largest city in the United States with more than 8 million residents and around 50 million visitors a year. • Nasdaq Screen (located on the South East corner of 43 rd and Broadway) • $66, 000 per 4 weeks in which 6, 680 30 second spots will be shown. • From April 1 st to July 22 nd, for a total of 16 weeks and 26, 720 spots. • Total Cost: $264, 000 [Source: Adage. com]

ADVERTISING BUDGETS Product Placement in America’s Next Top Model, the most popular fashion-oriented reality show in America. By integrating advertising in the media, we prevent customers from bypassing our product in regular commercials. The show currently has an average rate of over 3 million viewers per episode. [1] • The girls will be shown using the product in the final episode of the 14 th Cycle airing May 19 th, 2010 • $300, 000 Yellow Cab NYC Advertisement • • • 100 cabs at a monthly rate of $375 per cab [2] Beginning March 1 st until December 31 st Total Cost: $375, 000 [1] Source: Abc. Media. Net. com [2] Source: Yellow. Cab. Nyc. com

ADVERTISING BUDGETS Magazine Ads (Besides monthly advertisements in Lucky) Glamour, Allure, Vogue, Teen Vogue, Vanity Fair • • • March: Glamour Magazine (1 page, color) $200, 491 April: Allure Magazine (1 page, color) $131, 721 May: Vogue (2/3 page, color) $114, 862 June: Teen Vogue (2/3 page, color) $69, 575 July: Vanity Fair (2/3 page, B&W) $68, 660 August: Vogue (1 page, B&W) $91, 280 September: Allure (1 page, B&W) $76, 960 October: Glamour (1/3 page, color) $90, 252 November: Allure (1/2 page, color) $75, 716 December: Vanity fair (1/3 page, color) $74, 497 Total Cost: $994, 014 [Source: Conde Nast Media. Kit]

ADVERTISING BUDGETS SATC 2: Product Placement right before the beginning of the movie, only on opening night. – Exchange for the advertisement given to the movie by our product + $3, 000 Free word of mouth advertisement Buzz created by entertainment news shows such as E! News on E! entertainment television, MTV News, Entertainment Tonight, TV Guide, Access Hollywood, among others. TOTAL ADVERTISEMENT COST: $7, 061, 434

FASHION FLASH SALES FORECAST • HBO has over 40 million subscribers; around 18, 000 are women • FF monthly fee: $4 (40% HBO; 60% Lucky Magazine). Subscriptions can only be made yearly, starting in 2011. • Initial subscription for 2010 will be for 7 months with one month free; June until December 2010 for a fee of $24 (Lucky gets $14. 4) • Breakeven Volume of Customers: 378, 952 subscribers ($5, 456, 900. 4 Investment Cost/ $14. 4 revenue from each 2010 subscription) • Expected Fashion Flash Subscribers: 1, 800, 000 – Around 20% of HBO’s 18 million female subscribers enjoy shopping and do it frequently [3, 600, 000] – Out of those, we expect at least half to subscribe to FF: 1, 800, 000 • Expected Sales Jun-Dec 2010: $25, 920, 000 (1, 800, 000 subscribers x $14. 4) • Expected 2010 Sales Profit: $20, 463, 099. 6 ($25, 920, 000 - $5, 456, 900. 4) • On top of our subscriptions, Fashion Flash will also obtain revenue through advertisements.