Debra Russell Merchant Lead – MP3s, Accessories Kevin Balon Vice President, Musical Instruments

Why DJ/Beats? Why Now?  The DJ culture is about to explode. We want to be there first…And no one can do it better than BBY! –We already have built-in expertise with our Musical Instruments initiative –We’ve built a strong business with Beats headphones… Expanding to DJ Lifestyle takes it to the next level –DJ Hero game launches 10/27 –Brian Dunn thinks it’s important

Objectives  Create a unique, differentiated customer experience, across all customer touch points (multi-channel, multiple distribution outlets) –Drive Traffic – In-store, online –Offer customers a backstage pass to the latest/greatest technology –Create/OWN the DJ experience –BBY as destination for best sound quality, across multiple product categories  Blue shirts as DJ experts, evangelists, grass roots, localization

What To Expect Pre-Holiday  Products  Marketing  Events  Online  Training/DJ Contest

Products: All Stores

Products: Stores

Products: Stores

Miscellaneous Products  Beats by Dr. Dre Headphones: 5 new skus: Solo, Lady Gaga  HP Envy laptop, powered by Beats (store count TBD)  Miscellaneous accessories: Monster power/cables, Napster, iTunes cards

Marketing  TV: Great gifts spot (featuring Beats headphones)  Gift Guide: RZ Silver, Female experientials – Lady Gaga Heart Beats, Beats, by Dr. Dre Studio headphones 15: “15 gifts that give” (Beats, DJ Hero game)  BBY Tag Media: Exclusive, behind-the-scenes footage to run in-store (HD wall) and on-line (media network)  Pitch-In online program  Co-marketing opportunities with Activision (DJ Hero launch 10/26, DJ Lifestyle launch events mid-Nov.)

Events  In-Store events Lady Gaga (Union Square GO) Dr. Dre, Timbaland meet and greet Local DJ meet and greet, DJ in-store demos  Mall Of America events  Miscellaneous opportunities under consideration: Pro sports partnerships (Xgames, NBA, NFL) Grammies Live Nation NASCAR

Online  BBY.Com –Micro site developed: One stop shop for all things Beats (product info, artist videos, etc)  Online channel (preliminary) –Integration/placement on social media sites –Mobile (ring tones, apps, etc) –Viral communication of BBY events (video features, in-store events, launch events)

Training/Contest  Comprehensive training program to cross entire store, relevant product categories (MP3, MI, Gaming, Music, PC) Learning lounge, ETK Weekend training Monster in-store trainers  Contest – “Unleash your inner DJ” Share your knowledge, passion and experience in a 2 minute video Judges – Will. I. Am and Jimmy Iovine 3 winners – Great prizes (TBD) Watch for more details via Employee News

Guy Gonzales TCED T7

What we need from you  Execution –Set and maintain experience –Take the training –Staff appropriately to handle velocity  Engagement –Spread the word –Identify DJ talent in your stores –Share knowledge across your store  Feedback –Use.bus to share ideas and best practices

Gaming Lounge Event Tonight and Tomorrow  DJ Experience –Unlock your inner “DJ” –A chance to utilize the actual DJ gear –Compete for prizes –Meet professional DJ’s and learn from them  Starts at 7:00PM goes until 11:00PM