2013 Executive Summary and 2014 PR Proposal

December 19, 2013

Looking Back:
2013 was a BIG year for Birkenstock. Highlights include:

Media impressions: 268M

o Highest since we began partnership together in 2009
Total number of hits: 151
o Highest since we began partnership together in 2009
Cumulative media coverage equaling ad equivalency: $16.3M+
o Highest since we began partnership together in 2009
Two highly successful NYC desk side media tours
o Aided in securing six hits in top-tier, national publications
Named Brand of the Year by Footwear News
Named Brand of the Year Finalist by Footwear Plus

Grow spent the lion share of our 2013 retainers 510 total hours focused on strategic
media relations. The time allocation by our team was as follows:

Lifestyle/health/fashion press media relations: 63%

Account Maintenance: 9%
Influencer Relations: 8%
Trade show management: 7%
Strategic Recommendations: 6%
Trade media outreach: 4%
Social media advising: 3%

Please see the 2013 detailed recap/media performance grid delivered under separate
cover for more details and back-up.
Looking Ahead:
2014 provides the opportunity to continue underscoring Birkenstock as a footwear
staple for consumers from all walks of life. As we have discussed, 2014 will include a
shift in Grows PR priorities as well as the elimination of some responsibilities. A
summary is as follows:

Focus on brand messaging emphasizing 12-month product offerings

Drive Q3/Q4 coverage that supports new shearling products and socks
New target consumer segmentation: orthopedic; mainstream lifestyle; fashion - PR efforts will be targeted against lifestyle and fashion press only
Continue to secure top-tier media coverage in mainstream lifestyle and fashion
press [Womens Health; Fitness; Lucky; Mens Journal; GQ; Mens Journal; T:
The New York Times Magazine]
No need for trade show management [estimated at 7% of 2013 time]
No need for trade media relations [estimated at 4% of 2013 time]
No need for social media strategy [estimated at 3% of 2013 time]
No need for business story pitching [estimated at 0% of 2013 time]

Recommended Strategies:
Grow recommends implementation of the following strategies to achieve Birkenstocks
2014 goals to maintain momentum within the marketplace and retain a high volume of
top-tier media coverage:

Continue to pitch and nurture relationships with top-tier lifestyle/fashion media

via long and short lead print, digital news properties, broadcast media and
blogs
Introduce Birkenstocks new products to mainstream lifestyle and fashion
press, positioning the brand as a 12-month footwear force with a product
offering for each season
Support new product announcements (pricing, products, retailers) or company
news (new hires, program launches) with focused media outreach and
dedicated press releases
Manage desk side media tours or showroom meetings to ensure key editors
and influencers in NYC and LA maintain a personal affinity and connection to
the brand
Maintain even cadence of communication throughout the year, buffering
enough time to pitch media for fall/winter and holiday issues and stories
Clip, collect and merchandise all relevant media placements
Conduct status meetings and stay in regular communication to share all current
PR activities and receive relevant brand updates

What We Need:
Grow proposes the following time structure to achieve key 2014 objectives:

Continuation of the following account activities:

o Lifestyle press media relations
o Influencer Relations
o Account Maintenance
o Strategic Recommendations
Time will not be spent on the following account activities:
o Trade show management
o Trade media outreach
o Social media
Total Hours and Fees:
o $109,500 for 438 hours @ $250 per hour, which is reduction of 72 hours
against 2013
Digital Media Tools Fee
o $2,700 ($225 per month, same as 2013)
Total Agency Management Fee**
o $112,200

**If we reduce our status calls from weekly to bi-monthly, we can reduce our total fees
to $106,450