STRATFOR Global IntelligenceBrand Initiative Proposal 24 June 2011

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Agenda

• Your challenge to us• How we’d approach this initiative• Timing and cost estimates• About T3

Your Challenge to Us

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Create a clear STRATFOR brand

To have a working brand strategy and actionable brand plan that is:– Differentiating– Compelling– Focused on market intelligence as core– Encompassing of culture, value, benefits, offerings– Informative to business trajectory– Viable globally

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What success looks like

“We are a global market intelligence brand.

We want to dominate the business class through our political insight.”

• The STRATFOR brand stands on its own– Lesser derivative brand equity– Greater internal and market clarity around STRATFOR’s mission, value and positioning– Decreased reliance on Dr. Friedman

• It has appeal and resonance with a larger addressable universe– Increased awareness, consideration in key markets– (No direct attribution) Newsletter subscriber growth across individual and enterprise

accounts– (No direct attribution) Increased daily traffic to the website

How we’d approach this initiative

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Overview of our approach

Target profiling & sizing Brand audit Brand architecture

developmentCommunications

briefCampaign

development

Campaign deployment & optimization

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

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Target profiling and sizing

Key activities: Review existing data on subscribership Analysis of STRATFOR’s subscriber survey data Analysis of MRI reporting on target and sizing

Desired outputs: Dimensionalization of

US current and prospective target audiences

Sizing of addressable universe

Because it all starts with your readership, in this phase we’ll look to develop a thorough demographic and psychographic crystallization of your current U.S. target audience. Based on this, we’ll be in a position to be able to project the size of your addressable prospect universe (and thus the domestic opportunity for STRATFOR). This phase is the most critical, as it will serve as the foundation for this brand initiative. Additionally, this synthesis may also provide a vital input into determining if the opportunity size meets your business growth expectations.

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Brand audit: internal

Key activities: Interviews (Dr. Friedman, analysts, sales/affiliates, other

staff, individual subscribers and rejecters, enterprise licensees and rejecters, partners/publishers and rejecters)

Incremental scope: In-market qualitative focus group research (see next slide)

Review current financial modelling and product development Review guiding principles for website redesign

Desired outputs: Synthesis of internal

perspective on current brand, and brand opportunity

We begin our brand audit by speaking with as varied a sample of the brand’s stakeholders as possible — it is these people who ascribe meaning and value to STRATFOR as it currently exists. This allows us to get a firm grasp on current and perceived benefits, challenges and opportunities that are uniquely possessed by STRATFOR. The brand audit is a two-part effort that marries the internal discovery with an evaluation of the market landscape (brand audit: external).

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Brand audit: internal - research

Key activities Option 1: Informal focus group (single market/NYC)

6–8 participants with a mix of subscribers and rejecters in a location where all interested parties sit in an informal roundtable setting

T3 develops screener, solicits participants and provides incentives, creates discussion guide, moderates, and provides transcription, video and report

Anticipated hard costs: $3,000

Option 2: Traditional qualitative focus group (single market/NYC)

Third-party partner provides turnkey, full service solution Anticipated hard costs: $9,000

Desired outputs: As described

The research proposed in this phase would focus primarily on individual/enterprise subscribers and rejecters. Informal setting allows for interaction between the client and the participants, and costs are lower, however a traditional focus group setting makes participants feel more open about what they can say because the stakeholders are not in the same room.

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Brand audit: external

Key activities:

• Identify known and probable competitive set, validated against:

Third-party research tools e.g., Quantcast, Nielsen, Compete, etc.

Upstream and downstream website traffic (referring and adjacent content affinities, keyword searches)

• Competitive analysis, SWOT

Desired outputs: Brand synthesis and

distillation Refinement/iteration

and alignment

We marry our internal brand audit with a robust look at the market landscape, to give us a steer on the “real” competitive set, and what opportunity areas begin to surface for STRATFOR to own.

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Brand architecture development

Key activities:

• Develop, articulate and refine: Key differentiator(s) Brand promise Functional benefits Emotional benefits Brand positioning Messaging pillars

Desired outputs: Validated brand

framework Assessment of non-

communications implications

Once we have agreed upon key strengths and opportunities for the brand based on the audit, we can then begin to paint a more detailed picture of the STRATFOR brand. We’d also recommend validating the working brand framework through research to ensure that the directional brand resonates with your audiences in the U.S. and globally. As an outcome, we may find that the brand refinement has implications on the existing business model (e.g., overseas opportunity, new product ideation). In this case, we would advocate a separate work session, which would be scoped and priced separately from this initiative.

• Validate working brand framework: Qualitative focus group

testing in U.S. and key English-speaking markets (see next slide)

Brand framework refinement based on results

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Brand architecture validation

Desired outputs: As described

To validate brand architecture, T3 recommends qualitative research that allows for smaller samples in disparate locations by doing focus groups via video conferencing or qualitative research conducted through custom-built research bulletin boards. Both types of qualitative research are professionally moderated and hard costs include screener development, recruiting/incentives, discussion guide development, moderation, and reporting. Both allow for inclusion of a small group of English-speaking international participants.

Option 1: Qualitative focus groups using TelePresence Recommend 4 groups with 7 participants each (2 with subscribers/2

with non-subscribers) Split subscribers and non-subscribers into separate groups Split participants in each subset into the following locations:

1 group with 3 participants from NYC and 4 participants from one additional U.S. City

1 group with 3 participants from NYC and 4 participants from London, or an alternative English-speaking overseas city

Anticipated hard costs: $40,000 2 subscriber groups, 2 non-subscriber groups

Note: TelePresence video conferencing provide the platform to research respondents in multiple locations

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Brand architecture validation

Desired outputs: As described

To evaluate brand framework, T3 recommends qualitative research that allows for smaller samples in disparate locations including focus groups via video conferencing or qualitative research conducted through custom-built research bulletin boards. Both types of qualitative research are professionally moderated and hard costs include screener development, recruiting/incentives, discussion guide development, moderation, and reporting. Both also allow us to include a small group of international participants.

Option 2: Qualitative bulletin board Recommend 4 groups with 7 participants each

Qualitative bulletin boards set up for participants; professionally recruited and moderated

Conducted much like a traditional focus group, but discussion guide is revealed a few questions at a time and participants do not see responses of others in the group until after they respond

Split subscribers and non-subscribers into separate groups No travel costs for T3 or STRATFOR teams

Anticipated hard costs: $24,000

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The communications brief

Key activities:

• STRATFOR/T3 working session to agree: Target, markets, campaign budget, timing Go to market plan Test strategy Campaign success metrics

• Develop and finalize communications brief

Desired outputs: Approved

communications brief Go/no-go on ex-U.S.

efforts

At this point, we are ready to make the redefined brand tangible. The communications brief (directing media and creative efforts) is the guiding document that allows T3 to begin to create a brand campaign for STRATFOR, and contains all the necessary information for the agency to commence development. At this point, it is imperative that we align and lock on campaign target, budget, success metrics and timing. If STRATFOR wish to deploy an international campaign, at this point we will need to determine countries and engage T3’s local partners in those geographies (scoped and priced separately; see “About T3” for information about the network one).

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Campaign development

Key activities:

• Media topline, media recommendation, media plan• Creative concepts, campaign iteration

– Note: Creative deliverables priced separately once identified

Desired outputs: Approved U.S.

campaign Approved ex-U.S.

campaign(s), if applicable

In collaboration and in parallel, our media and creative teams will provide STRATFOR with recommendations on campaign specifics, including best-fit media properties and formats, and advertising campaign creative. (Any work on internal STRATFOR properties (e.g., website and e-mail redesign) will be scoped and priced separately.

If this initiative requires an international deployment, our partner agency(ies) from the network one will also be engaged with us to ensure the most resonant transcreation of our campaign in their market(s).

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Campaign deployment and optimization

Key activities:

• Brand campaign in-market• Brand tracking study (e.g. Insight Express, Dynamic

Logic, ComScore if digital)– Note: Brand tracking study priced separately once

appropriate platform / methodology is selected

• Weekly and monthly reporting and creative/media optimization

Desired outputs: As described

The final step, of course, is to go to market with the STRATFOR brand initiative. T3 will launch the new brand effort, and ensure rigorous tracking in order to be able to fine-tune the campaign’s media and creative elements to their fullest potential. We also recommend engaging a third party to conduct a pre- and post-hoc brand study, so that we can objectively determine that in addition to the campaign “working,” that the new STRATFOR brand itself is resonating with our key audiences.

Recap: overview of our approach

Target profiling & sizing Brand audit Brand architecture

developmentCommunications

briefCampaign

development

Campaign deployment & optimization

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

STRATFOR re-evaluates

Timing and cost estimates

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T3 charges a fee for service against an agreed scope of work. Our time is all that you pay for. There is no mark-up on production, media, travel or hard costs, ever.

While this engagement would be led from our Austin headquarters, STRATFOR will have access to talent and resources in all three of our offices. Because our offices operate with a single P&L, we can cast T3 talent to the project's needs, regardless of location.

How we’d work

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A preliminary estimate on investment

Phase Agency Fee Hard Costs* (if any)

1: Target Profiling and Sizing $53,000 -

2: Brand Audit $75,000 $3,000 - $12,000

3: Brand Architecture Development $175,000 $24,000 - $40,000

4: Communications Brief Development $44,000 -

5: Campaign Development $220,000 -

6: Campaign Deployment and Optimization $98,200 -

Subtotals $665,200 $27,000 - $52,000

TOTAL ESTIMATED INVESTMENT $692,200 - $717,200

Tool Kit Materials

58% (1,910 hrs) Logo & ID

18% (590 hrs)

Discovery9%

(300 hrs)

Research & Comms Plan11% (380 hrs)

Based on what we know today, we anticipate that an assignment of this nature would require an overall investment of $692,200 – $717,000, about 4–7% of which would go into pass-through hard costs. The agency fee assumes various rates by role. The pie chart illustrates the level of effort and the percentage of budget committed within each phase.

Note: Media planning and implementation labor considered in Phase 5: Campaign Development is based on a $1.5 MM – $3.0 MM media buy.

Phase 1: Target Profiling & Sizing

7%12%

30%

6%

31%

14%

Phase 2: Brand Audit

Phase 3: BrandArchitectureDevelopment

Phase 4: Communications Brief Development

Phase 5: CampaignDevelopment

Phase 6: Campaign Deployment & Optimization

Timeline

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Stratfor Milestones

T3 Research, Analysis, and Definition

T3 Brand and Communication Development

1w 2w

Brand architecture development5w

Develop, articulate, refine2.5w

July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012

T3 Campaign Development and Optimization

Target profilingand sizing

Brand audit(Internal)

2w

Brand audit(External)

Validate working brand framework

2.5w

2w

Develop and finalize communications brief

Media planning 6 – 8 w

Campaign development(Concept creation and presentation) 5w

Campaign production* (Execution of campaign deliverables) 5w

12W

Campaignoptimization

Campaign deployment 2 – 3 w

Mid-July re-evaluate

Early August re-evaluate

Early Octoberre-evaluate

Mid-Octoberre-evaluate

End of Novemberre-evaluate

About T3

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We find smarter ways to connect people and brands.

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We work collaboratively: a fusion of strategy, creative, technology, media and measurable proof.

About us

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170+ thinkers. Independent since 1989.

$313MM capitalized billings.

57 on Ad Age’s largest agency list.

17 among independent agencies.

Top 100 Agency

What we do

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Strategy

Social

Branding

Mobile

Digital

Media

Websites

Analytics

Video

Print

E-mail

Rich

Media

Our clients

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• An unconventional, yet practical alternative to a traditional multinational network

• Custom-builds international agency networks — on demand, thus affording speed, agility and flexibility

• 330+ agencies in 65 countries• Net fee income $1bn• Media billings $6bn• Multi-award winning agencies

We are a member of the network one

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Partner agencies on demand Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Belarus Belgium Brazil Bulgaria Bosnia Canada Chile China Colombia Costa Rica Croatia Cyprus Czech Republic Denmark

Ecuador Egypt Estonia Finland France Georgia Germany Greece Hungary Iceland India Indonesia Iran Ireland Israel Italy Japan Jordan Kazakhstan Kuwait Latvia Lebanon Lithuania

Macedonia Malaysia Malta Mexico Moldova Morocco Nepal Netherlands New Zealand Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russia Saudi Arabia

Serbia & Montenegro Singapore Slovakia Slovenia South Africa Spain Sri Lanka Sweden Switzerland Taiwan Tajikistan Thailand Tunisia Turkey Turkmenistan Ukraine United Arab Emirates United Kingdom United States of America Uruguay Venezuela Vietnam Uzbekistan

Agency in-market Managed from

another country

Thanks.

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www.T-3.com

Lee GaddisChief Operating Officer

O: 512.721.1340M: 512.203.6309

lee.gaddis@t-3.com