Brand Strategy 2014

1-800 Flowers Brand Strategy & Marketing 2015 October 2014 California Lisa Hendrikson Vice President, Brand Strategy & Marketing

1

1

Brand Strategy

2

The Current Environment  Weakening of Flash Sales (-40% YOY)  Competitive pricing/offers -- $19.99 price points, 40-50% off  Competitive spend – including Edible Arrangements, ProFlowers  New Floral Brands – Bouqs, H.Bloom, Amazon, Bloom Nation, Bloom That  Same Day Delivery offered outside of floral space – Amazon, Target, eBay, Google Shopping Express  Valentine’s date placement – Saturday (forecasting -15% decrease in sales YOY)

3

1800flowers.com  Continued shift of traffic to non-desktop (hitting over 50% in 2014)  Increase social engagement & “social” commerce – 1MM mark (Facebook likes) – Collect and Promote content (incl. Celebrations)

 Email database is less engaged  Direct Mail testing  Role of TV, New Media & Online Video and measurement for success  Targeted Display  Role of PayPal, Visa checkout, Google checkout, alternative payment options

4

FY15 Brand Objectives  Invest in web/mobile shopping experience  Launch new web platform – single check out across brands  New customer database with Merkle  Continued integration of “Come In” (brick and mortar) – bring the local florist to the forefront  Leverage Fruit Bouquet business  Leverage Food and Baskets brands, Harry and David  Loyalty Programs – Passport and Fresh Rewards  Expand reach through partnerships – Real Simple, Sandra Magsamen, Isaac Mizrahi 5

Retail Integration / Marketing

Store Locator Page

Store Locator - Landing Page

Choose your state or enter your ZIP code.

Store Locator - Store Page

Meet your Local Florist.

In store coupon

Local Merchandising Program Store Page

See Locally Exclusive Arrangements.

10

Read about how the product came to be, who made it, and a little about the florist themselves.

1-800 Flowers – Promotional / Transactional e-mails E-mail Banner links right to the Store Locator Page.

11

1-800 Flowers.com Direct Mail

12

1-800 Flowers Partnerships

13

Offline Radio Partners

Local Marketing Test: Mobile Geo-fencing

Reaching our customers.

1-800 Flowers ads were targeted to consumers near 1-800 Flowers retail shops as well as competitor locations.

Mobile Display.

17

18

National Commercial