1. Reinventing Non Subscriber The Path to High Volume

3. With... A lot less paid print distribution Less major account revenue Loss of classified as we know it A lot more competition from digital only sellers

16. The Single Most Important Thing Yield

17. Yield Management Finite resource – Maximize yield Infinite resource – High volume – Optimize cash flow

19. MondayTuesdayWednesdayThursdayFriday Tom Mary Bill Bob Joan Sally Finite Resource

20. Sales Reps Time Most Valuable Finite Resource Increasing Yield though – Improved selling process – High Yield Selling Higher Frequency Higher Average Ticket Strategic Bundling

21. Budgeted Revenue per Hour Based on 1800 hours a year $100,000 budget = $55 per hour $200,000 budget = $110 per hour $300,000 budget = $165 per hour $400,000 budget = $220 per hour

22. Selling 25% of the time? $100,000 budget = $220 per hour $200,000 budget = $440 per hour $300,000 budget = $660 per hour $400,000 budget = $880 per hour

23. Two ways out…. A) Hire more people B) Increase the yield per hour

24. TMC’s are more critical than ever… …and there’s a lot of upside.

25. Seismic Shifts Now delivered to 70 or 80% of homes vs. 20 to 40% Decline and consolidation of big box and grocers Postal rate increases and Alternate Delivery improvements

26. Paid Home Delivery penetration struggles to provide results for local merchants Digital marketplaces and competition- no barrier to entry Seismic Shifts

27. Valassis taking over ADVO National retailers outsourcing market analysis

28. Why Non Subscriber? Needed to provide print solutions for SMB’s Without print, we must rely mostly on digital subscriptions to support news, and… We are left to compete in a commodity business in a sea of competitors

29. Valassis Results 2007 RPP- $295 Pcs per pckg- 6.2 Net- 2.8% 2011 RPP- $375 Q4- $402 Pcs per pckg- 10 Net 14.3%

30. Assessment of 326 papers Average RPM $264.04 Brackets – Under $200 73 – $200 to $250 79 – $250 to $300 74 – $300 to $400 50 – Over $400 51

31. Key Finding Papers over $300 RPM – Median HH distributed 22,616 Papers delivering TMC to 100K HH or more – Average $234.88 RPM

32. Percent from the Top 10 Larger markets are typically over 75%, often as high as 90% Smaller markets are usually below 60%, unless they have high rates The goal is to get to 40% or lower

33. Goals Diversified revenues of at least $400 RPM Think of this as a powerful base to grow from Leverage print to improve digital position

34. Creating a Plan Create context

38. We’re doing that already

39. How well are we doing that?

40. Leveraging what others know You MUST look at it from the perspective of YOUR strategy Tactics will behave differently in different contexts Don’t ‘cafeteria copy’

41. Market Factors Metro, suburban or rural Competition Sales Pressure Compensation Driving market share? Opportunities, threats? Recent results?

42. Our market is different

43. Who else is doing that?

47. Where are we going?

48. “What does this need to look like 3 years from now for you to be happy?” RPM? Market Share? Digital?