Hunter Thomas Gabbi Baker Alex Caffrey

February 3, 2013 New York, NY

agenda

–  meet the team –  mission & business concept –  a change in play –  our niche

–  conceptual store design –  advertising & marketing –  financials –  growth landscape

meet the team

hunter gabbi alex

mission

fundamentalplay is committed to child development.

We believe that great play creates great minds.

By creating interactive and educational play experiences, we can grow young minds to

reach new heights of imagination, creativity and intellectual development.  

business concept

specialized, unique focus

exceptional service

high quality products

engaging experience

a change in play

competitive playground

a change in play

competitive playground

new consumers

a change in play

competitive playground

new consumers

evolution of play

$23.9

$7.3

$23.3

$3.1

$23.1

$2.6

world toy industry

$84 billion 2.14% growth rate (‘07-‘11)

US toy industry

$22 billion US

69% of sales for

children under 8

$284 avg. yearly expenditure

per child

a change in play

competitive playground

new consumers

mom: then

traditional homemaker

rise of soccer mom

family activity director

mom: now

work-life balance

increasing selectivity

mom’s community

a change in play

competitive playground

new consumers

evolution of play

evolution of play

kids getting “older younger”

play has become digital

social explorations

a change in play

competitive playground

new consumers

evolution of play

toy stores: slow to change

1950s

toy stores: slow to change

1950s 2010s

toy stores: the reality

toy stores: the gap

•  shift towards international growth

•  focus only on kid’s experience

•  lack of attention to post-toddler years

•  rising cost and market limitations prevent potentially great, new toys  

our niche

consumers location employees

products & brands

retail perspective

consumer

purchasing power of women

$7T 85% of all

consumer purchases in the U.S. are

made by women

is contributed by women in the U.S. in consumer spending

1.3M

women earn more

than $100,000 in annual

salary

2/3 of consumer wealth in the

U.S. will belong to

women in the next decade

consumer

moms

aunts

grandparents

looking for meaningful products and expert advice

shopping for the child’s smile at any price

buying classic toys that ground their grandchildren

consumer: moms

$2.1T 50%

preschool toys purchased for

education

1 in 5

households contain a mother, father &

child under 18

spending power of U.S. moms annually

mom

consumer: aunts

aunt

76%

spend $500+ annually per child

68%

are role models for kids in their lives

23

million U.S. Professional

Aunts No Kids

feedback

“This [concept] is fantastic…the PANK has

long been ignored by marketers, and when she is

appreciated and acknowledged, undeniably

she becomes loyal.” Melanie Notkin,

Founder, SavvyAuntie

consumer: grandparents

grandparents

2/3

“spoil” their grandkids

$52

billion spent on grandkids

70

million American grandparents

location

•  near affluent suburban and urban neighborhoods

•  co-located in grocery-anchored centers that include yoga studios, children’s clothing boutiques and lifestyle stores

•  high traffic areas with surface parking

employees

specialized training

friendly service

college & graduate students

child development focus

products

Ubooly Radio Flyer Wagon

Plan Toys Dollhouse

Green Toys Block Set

Hape Toys Peg Puzzle LEGO Life of George

craftsman & independent digital & building

traditional & licensed

brands

retail perspective

We Are We Are Not

•  Neighborhood Store

•  Unique, High Quality

•  Educated, Friendly Staff

•  Teacher Supply Store

•  “Play Zone” or Day Care

•  Mindless Toys

feedback

“This is a great idea! It’s the right time for

fundamentalplay to enter an underserved niche market.”

Caren Shalek, Board Member,

Toy Industry Foundation

store design

1

2

store design

3

4

store design

5

6

store design

7 8

7

advertising & marketing

social media

community engagement

events & promotions

advertising & marketing

social media

community engagement

events & promotions

social media

social media

advertising & marketing

social media

community engagement

community engagement

•  partnerships with neighboring retailers

•  involvement in local schools

•  charity toy drives

advertising & marketing

social media

community engagement

events & promotions

events & promotions

toy registry program

events for secondary caregivers

storytelling and expert

lectures

new product launches

seasonal workshops

feedback

“We hear a lot in our forum that…events tailored to

working parents would be more valuable. Your

demographic is definitely looking for what you offer.”

Maria Sokurashvili and Jeff Steele

Founders, DC Urban Mom

spotlight: Bethesda, MD

$130K median HH

income

Population: 60,858

Annual Revenue: $1.6 million

$400 per year per child

19.2% under 14 years old

40% of the market

spotlight: Bethesda, MD

SPACE

store: 1,800 SF rent: $60/SF

EXPENSES

team: manager + 8 employees marketing & other expenses

financials

REVENUE

sales: $600/SF markup: 45%

GROWTH

first year: 5% after: 2%

operating income

FYE1 FYE2 FYE3 FYE4 FYE5

growth landscape

Bethesda, MD

White Plains, NY

Greenwich, CT

Brookline, MA

Alexandria, VA

growth strategy

10-15 locations

seasonal pop-up shops

omnichannel expansion

private label & exclusive lines

in review

inspiring experience

meaningful toys

targeted market

community engagement

above all, child development  

future of play

Hunter Thomas Gabbi Baker Alex Caffrey