Camping overview

LATAMOutdoors Business

Sebastian Lagunas B.Santiago de Chile, June 6, 2014

AGENDA

Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan

KEY OBJECTIVES

The technical outdoor market in selectedmarkets.Look for category leadership.

Lead1

Make it a premium profitable high marginbusiness

premium3

Follow a medium / long term strategy

strategy4

In segments were 50% of the income is(ABC1, D)

Position the brand2

StrategiesSharp brand focusCommunicate the brand’s roots andinternational charm through team with vastexperience in outdoor retail and actions sports.Dedicated organization to XXX XXXXX in LATAMEntrepreneurial environmentFocus start in Retail

SWOT ANALISIS

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The GAP quality between private labels andheritage brands like marmot and TNF.

Outdoor market is growing 20-25%

STRENGTHS

OPPORTUNITIES

SWOT ANALISIS1.- Late arrive to some markets. Big brands precence 5+ years. Withmedium to high penetration and efficiency2.- Big volume sold by national brands or local retailers. o Ex. Some brands represent 50-60% in bigbox retailers o Products are middle quality but very well communicated andmarketed

1.- Local and Mercosur production2.- China production for private labels is high.

Weaknesses

Threats

AGENDA

Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan

For a better understanding of this big anddiverse market the emerging LatinAmerican economies are grouped in 6subregions.

OVERVIEW OF THE MARKET

The andean

Brazil

Mexico

The Caribbean

Central A

merica Southern Cone

Doing Business 2014Half of the economies of Latin America, amongthe best in the world to do business Chile, Mexico, Colombia, Peru and Costa Rica,in the list of countries with good businessclimate.

Why LATAM

Brazil is expected to be the fourth largest economy in 2050. Expansion of foreign brands - many companies such as Burberry,Mothercare and Adolfo Dominguez are focusing on Latin America. Latin America has some of the most attractive markets in comparisoncountry risk and market potential (2012 GDRI)

Why LATAMStrong expansion of the middle class Supermarkets and depart. stores segment's are retail areas with highergrowth. Penetration is still low (25-30 m2/1000 inhabitants), a strong salesgrowth and surface are expected. U.S. $ 6.348 million will invest the six largest retailers in Latam 2017(Cencosud, Falabella, Ripley, Walmart, Parque Arauco and SMU). Objective:Peru, Argentina, Colombia and Brazil. Big % of market is dominated 4-5 large retailers. Therefore competition (nocompetition) is high. Growth prospects 3-4% on average. Countries above the media Chile (5%),Colombia (4.5%), Peru (6%). Controlled inflation in several countries. Brazil, Mexico and Chile are the countries with the highest retaildevelopment. Colombia is the star, too much interest in Peru.

GRDI country attractiveness

AGENDA

Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan

Most important outdoor markets

ColombiaPerú

Ecuador

Dominican Republic,Puerto Rico

Costa Rica, El Salvador, Guatemala Panamá.

Argentina, Chile andUruguay

Brazil

Market size Performance, action sports & outdoors

US$ 1.000 Millions Market Opportunity(Excluding Mexico)

MM $450 MM $320 MM $230

MAIN ACTOR:ColemanDoite TNFNational GeographicIntex BestwayPrivate labelsMountain GearKlimber

App

arel

Foot

wea

r

Equ

ipm

ent

Equipment

AGENDA

Key ObjectivesBusiness EnvironmentOutdoor Market SummaryCompetitionBrand & Sales Plan

Main competitors country overview

60 stores (2013)20-25% growth expected (2014)Part. Market estimated 15-18%.

Last movements and projections: Since 2012 direct representation office (Cali). Double market share and revenue in 2014. Installed with a factory for textiles in the region (5 + years)

COLEMAN - Main markets

COLOMBIA

Main competitors country overview

Keeps 9 years a strategic alliance with Jeep. Strong promotion (Latam) line of tents Instant Dome

COLEMAN - Main markets

VENEZUELA

Marketing Tactics

CAMPING market opportunity is about MMUS$ 120 (retail sales).15-20% annual sales growth.COLEMAN is leading sales in almost every market, but PRIVATE LABELShave been growing fast in the last years. Falabella private labels havereached the same level of sales coleman. Most of the countries have high taxes, retail prices for xxx xxxx remaincompetitive and atractive, even when consider open doors at bigboxretailers. Ex: Coleman 4 pax tent Retail Chi US$200: Col. US$ 318 XXX XXXX 4 retail at US$ 179-189 Ex: Sleeping bag (30ºF) Coleman Retail US$ 60 XXXXXX similar retail at US$ 49

Marketing Tactics

Target prices (Falabella, Ripley, Sodimac)Airbeds & Mats: US$ 20 - 59Tents: US$ 39-109 low quality

US$ 159-329 Best qualitySleeping Bags: US$ 39 - 99Camp. Accesories: US$ 9-29-99

Opportunities

o XXXX Brand o Key end-user insights: o XX million runners in Latam: X% = the core of market (enthusiast and active buyers). o Runners also participate in other activities: strength training (59%), cycling (36%), swimming (53%) and hiking (28%) o Shelters, canopy and furniture: via sodimac and big box retailers. Internet! Ex: Brasil Kanui.com.br (action sports specialist) Retail US$ 120 mill, growth 9.000%.

Key to Success in Latin America

Overcoming Trade Barriers It is important to partner with locals how will help tonavigate among regulatory issues and tap into themarket potential there.Offer Low Price Points for masive retailers.Pacific coast must be the place to focus on.Brazil - is considered impenetrable by many outdoorbrands. And Argentina is also dismissed as beingparticularly hostile toward imports of manufacturedgoods.

About me (skills)+ 6 years of experience in managing a sales team with multiple retailersand categories. Experience in managing independent sales reps andagencies.Worked with almost every big brand and retailer in the region, that give mea full understanding of the products, market needs, business models,negotiation skills and networks to succeed.Knowledgeable and active in human powered outdoor activities.One of my plus is the experience in the Consumer Goods industryI got the ability to travel the region as necessary.Experience in crunching and analyzing data to produce action plansDemonstrated history of attention to detail and follow-throughIndependent, creative self-starter with the ability to work independently withlimited direct supervision. EntrepreneurExcellent communication, follow-up, organization and interpersonal skills.Manage forecasting and reporting of financial commitments

Camping overview

LATAMOutdoors Business

For any further informationcontacte me atsebastian@onebiz.cl@seblag