Dallas franchise presentation

1-800 Flowers Brand Strategy & Marketing 2015 June 2014 Dallas, TX Lisa Hendrikson Vice President, Brand Strategy & Marketing

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Brand Strategy

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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)

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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

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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 Loyalty Programs – Passport and Fresh Rewards Expand reach through partnerships – Real Simple, Sandra Magsamen, Isaac Mizrahi 4

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.

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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.

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1-800 Flowers.com Direct Mail

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1-800 Flowers Partnerships

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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.

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Mobile Display.

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