Cause-related marketing at its best Bridgestone Firestone America s

Cause-related marketing at its best Bridgestone/Firestone & America’s K-12 Schools Exclusive Co-Venture Partnership Proposal 1

Nationally sanctioned K-12 school program § The America’s Schools Program™ (ASP) is a cooperative venture between State School Boards Associations from across the country. § The purpose of the program is to generate additional new dollars for school programs by creating new marketing opportunities for corporations and national retailers who support our schools. § The State School Boards Associations have banded together to use the America’s Schools Program as their exclusive marketing vehicle for designating corporate support to generate national clout for our schools. America’s Schools Program 2

Conducted under the governance of the State School Boards Associations across the country. America’s Schools Program 3

Contracts Each State School Boards Association has signed an exclusive representation contract, with state authority being assigned to the America’s Schools National Business and Licensing Board. This enables the national executive committee (8 states) to enter into national K-12 schools licensing and corporate partner programs without having to gain individual approval from all fifty states. America’s Schools Program 4

Education is America’s # 1 concern A recent Gallup Poll cites education as American’s # 1 concern, over the economy and crime. A recent Cone/Roper study focusing on consumers and cause marketing found… • 76% of consumers would more likely switch to a retailer associated with a good cause • 76% of consumers would more likely switch to a brand associated with a good cause. • 33% of Americans cite “education” as their top cause. School budgets are getting decimated in the current round of government budget cuts with many discretionary programs falling by the way-side. The emotional pull of helping school children is overwhelming. This community has shown time and time again that they will support the corporations that support their schools. America’s Schools Program 5

History in the making The benefits of cause-related marketing have been well documented ever since American Express first used the phrase in its 1983 campaign for the restoration of the Statue of Liberty. During that campaign, American Express made a one-cent donation every time someone used its charge card; those pennies added up to millions of dollars for the statue; the number of new card holders soon grew by 45%; and card usage increased by 28%. America’s Schools Program 6

The emotional pull of America’s school children has never greater Now, for the first time in the history of education, state school boards associations across the country are partnering together to create a causerelated marketing opportunity focused on those school children. These school board associations collectively represent 14, 500 school districts, 10 million employees, 47 million students in over 100, 000 kindergarten through 12 th grade schools. They have created a national retail and consumer products licensing and sponsorship program designed to increase profits for participating corporations and create a new funding stream for public schools throughout the United States under the auspices of The America’s Schools National Business & Licensing Board. It’s called The America’s Schools Program 7

The power of cause-related marketing Cause-related marketing is a proven winner. America’s school children are a worthy, deserving cause. And the America’s Schools Program is ready to harness the power of compound cause-related marketing on behalf of its allies to raise substantial funds for America’s schools while making a substantial impact on its allies’ business. Are you ready to step up and… do well by doing good? America’s Schools Program 8

Market Size /Stats U. S. School Statistics: § 10 million employees § 47 million students § 40 million parents and grandparents § 1. 2 billion paid spectatorship base § $3. 5 billion maintenance fleet § $375 million in driver education fleet § 25, 267 fleet vehicles purchased annually § 100, 000 schools § 14, 500 school districts America’s Schools Program 9

ASP-Bridgestone/Firestone Proposed Co. Venture Partnership Corporate sponsorship to include: § In the Game – Football Programs § National Retail Education Month § Co-branded Retail Affinity Card § Co-branded Bottled Water Program § ASP- Music of America CD Program “Official Automotive Service Provider” § Employee incentive purchases & discounts § Student/parent incentive purchases & discounts America’s Schools Program 10

FIRST STAGE PROPOSAL “ In The Game ” America’s Schools Program 11

In the Game – Football Programs High School Sports - nothing generates as much excitement and loyalty from its millions of passionate fans each week throughout the season. They support their teams and their schools like no other sport around. PSP, the nation’s leading publisher of gameday media, and The America’s Schools program, have teamed up to offer advertisers the opportunity to reach a highlytargeted, involved audience while, in the process, generating revenue back into the school systems nationwide. Get “In the Game” and become a part of the most comprehensive publication to cover high school football ever. Advertising in the inaugural issue of “In the Game” gives an advertiser the inside track on category exclusivity as the program is launched nationwide over the next couple of years America’s Schools Program 12

What is “In the Game”? • "In the Game" is a full-sized, 24 -page, glossy 4/C magazine that is published for each home football game of high schools throughout each of seventeen states • Each issue is customized for schools in each particular state • There will be five issues per season (one issue for each home game) • Each school will receive between 300 -500 FREE issues of "In the Game" for each home game to sell for $2 each • Distribution will take place in the following 17 states: New York, Louisiana, Texas, Missouri, Alabama, Oklahoma, Oregon, Tennessee, Mississippi, Michigan, Ohio, Kentucky, Arkansas, New Jersey, Florida, California, North Carolina • Editorial content will consist of feature stories, insightful interviews, action photos, historical perspectives, player/coach profiles, college bowl game sweepstakes • 2 M copies will generate $4 M in school revenues! America’s Schools Program 13

How “In the Game” works • "In the Game" magazine is provided FREE to all participating schools in 17 states across the country • Every school in each state will be contacted and asked if they'd like to participate in the program. There is no downside. They receive free football magazines that they can use as a fund raiser and/or as added value for their fans. • Copies of the magazine are shipped directly to the athletic director at each school for distribution at all home games. • The magazines will generate a new revenue source for all high schools as they have the ability to sell "In the Game" magazine and keep all monies. • In addition, PSP creates a generic roster template for use by schools enabling them to sell local advertising. This creates a second revenue stream for the schools. 14 America’s Schools Program

SECOND STAGE PROPOSAL “National Retail Education Month” America’s Schools Program 15

National Education Month • Customers offered the opportunity to give their loose change to America’s Schools at participating retail/restaurant locations. • Bridgestone/Firestone can leverage the America’s Schools national symbol in their marketing materials in-store and across media as they see fit. • Massive PR support and public service announcements. • National Restaurant Education Month is being developed with National Restaurant Association for 2004 – generating compound effects of parallel marketing efforts, through America’s 870, 000 restaurants nationwide. Schools Program 16

THIRD STAGE PROPOSAL ASP-Bridgestone/Firestone Retail Card Program America’s Schools Program 17

Co-Branded Retail Affinity Card Program • A co-branded credit card that offers consumers, educators and parents a way to support their schools. • Currently teachers nationwide spend over $1. 3 billion of their own money on school materials per year. • The more they use the ASP-BF Retail Purchase Card the more money is given to our schools. America’s Schools Program 18

Affinity card applications New applications will come directly from states and local school boards, PTAs and High School sports and activities associations rather than traditional channels: § § § Through the school systems to all education-related employees. National, state and regional conferences Special events, sporting events, PTAs and booster clubs School mailings to parents and grandparents of students. Direct mailings in conjunction with special promotions like “Back-to-School” or “Summer Programs”. Additionally, incentives such as mileage reward programs and/or cross promotions can be developed so schools & consumers can track their usage & benefit from it. America’s Schools Program 19

Overall Official Credit Card Opportunity The Bridgestone/Firestone Official Retail Affinity Card Program of America's Schools: § One: Official Retail Service Card for Parents/Students with specific benefits directed back to the local school booster club. • Two: Official ASP- School Employee Card for 10 million full time employee base. • Three: Official ASP- School Fleet Vehicle Card for 3. 1 billion dollar in fleet vehicles within our public school system. America’s Schools Program 20

FOURTH STAGE PROPOSAL CO-Branded Bottled Water Program America’s Schools Program 21

Bridgestone/Firestone Bottled Water Program • Co-branded private label bottled water designed exclusively for Bridgestone/Firestone and America’s Schools Program. • Creative label design that promotes Bridgestone/Firestone as “The Official Pit Stop for America’s Schools”. • Water label can act as a coupon or advertise Bridgestone/Firestone services. • A thirst quencher for your customer waiting in the lobby for their vehicle. • A “Thank You” as your customer drives back to the office or home. • Your name on the bottle of water will help keep you in the minds of your customer longer. • Would Bridgestone/Firestone rather have a “Satisfied” customer or a “Happy” customer? A “Happy” customer is more than satisfied, they received quality and service and they were thanked for their business. • All manufacturers produce the highest quality spring water and are carry multiple certifications and approvals. Program America’s Schools 22

Official Bottled Water Program § Bridgestone /Firestone can add to the retail price to be donated back to America’s Schools. § Private label water provides higher per unit profitability and increased retailer brand awareness. § Through national network of bottlers, Bridgestone / Firestone is assured of consistent quality, label design and price specific to distribution locations. § Single point of contact for national private label program America’s Schools Program 23

ASP-Benefits to Bridgestone/Firestone Bottled Water Program • Program sponsorship generates positive corporate awareness and recognition • Provide funds for schools through sales of official bottled water of the “America’s Schools Program” • A private label co-branded bottled water designed exclusively for your company bearing the American’s Schools Logo. • Creating your own brand awareness and controlling your brand placement. • Network of Program bottler capabilities for nationwide support • Reduced freight rates to distribution centers. • Quality control, timely and efficient deliveries. • Certificate of insurance and hold harmless agreements for all water purchases. • Centralized program management and administration • Program pays for all labels produced under the private label contract for America’s Schools. • Reduced and affordable national price points on all SKU’s. • One contact for all art work, label creation and orders. America’s Schools Program 24

Bridgestone/Firestone Opportunity Nationwide The official “Pit Stop for America’s Schools” • Official bottled water program • Impulse purchases in-store • Profitability and exposure for Bridgestone/Firestone while supporting a national program that all school systems need. • Strong demand for product offering • Bottled Water is the number 2 beverage in the country and rising. (Beverage Marketing Magazine) • A private label bottled water for all Firestone Retail Service locations. • Help drive profits and brand recognition while helping to fund America’s schools at the same time. America’s Schools Program 25

FIFTH STAGE PROPOSAL Music of America’s Schools Program 26

Bridgestone / Firestone Music of America – Funding school music program Overview The program - “Music of America”(MOA) is a music industry-wide supported CD compilation series featuring today’s most popular recording artists. All major labels will participate in this groundbreaking fundraising initiative to benefit the severely cut-back music education programs in America’s schools. The “Music of America” CD will be created and distributed 2 to 4 times per year. The CD’s will contain 12 -14 tracks by artists such as: Justin Timberlake, Jennifer Lopez, Jay-Z, Coldplay, Beyonce’, Sheryl Crow, Outkast, Clay Aiken, Hillary Duff, Dido, Chingy, Linkin Park and Norah Jones. The project is designed to appeal to a broad audience, and especially to the youth in America’s Schools Program 27

School Focus on Firestone Retail Locations Music of America CD will create strong linkage between Bridgestone /Firestone-America’s School students and the featured recording artists: Students at all grade levels (rotating) compete to create the cover art for each CD. Journalism students compete to interview participating artists for Music of America website, school newspapers and television media. Leverage the popularity of popular recording artists as role models. Artists can stress the importance of education and reflect on their own personal experiences in school. PSA ad campaign featuring participating recording artists asking America to support school music programs by buying the CD. America’s Schools Program Similar to MTV’s “Rock the Vote” media campaign. 28

Potential Economic Benefits Initial production costs underwritten by Bridgestone/Firestone (BF) with specific Bridgestone –Firestone designed branding on the CD cover: $12. 99 retail sale price will net approximately $6. 00 per unit to Bridgestone Firestone locations, with $2. 00 per unit to America’s schools music programs. (Retail sale price could be higher, along with royalty back to our schools, if desired). Current retail sales of “Now That’s What I Call Music” most recent release are over 5 million units ($18. 99 list price). “Now That’s. . . ” CD compilation series is an appropriate comparison model. There have been 15 CD’s released, each selling at least 1 million units, some many more. ( One music box contains 25 CD’s) With BF retail-sales of one music box per retail location, per quarter, would conservatively generate a net profit of $330, 000 a quarter, for all the 2, 200 individual BF retail location. New CD’s can be released as America’s Schools Program 29

How does “Music of America” work • Each Bridgestone / Firestone location receive self-shipper boxes containing 25 CD’s and point of purchase display. • Bridgestone / Firestone retail managers simply open the box, attach P. O. P. display and place by the cash register for easy purchase. • After selling through box of CD’s, retail manager keeps their portion and sends remaining proceeds to America’s schools for distribution. Retail location manager re-orders CD’s as much and as often as they like. America’s Schools Program 30

The alliance Corporations interested in making a positive impact on America’s schools by promoting their products or services to raise money for the schools are natural allies. Through the America’s Schools Program corporate sponsors , like Bridgestone/Firestone and others are doing cause-related marketing to support a worthy cause. The compound effect of all the corporate sponsors, unified through ASP efforts, delivers far greater benefits to America’s schools than a single organization can achieve alone. America’s Schools Program 31

On campus and off campus On campus: Exposure and awareness of the Bridgestone/Firestone “official status” will be communicated through and with every communication vehicle that exists within the K-12 school system by each State School Boards Association. Off campus: Marketing and media plan includes, but not limited to radio PSA’s, outdoor billboards, transit bus advertising, PBS and over the air television underwriting exposures, etc. America’s Schools Program 32

Program Overview • As each of the individual programs presented in this proposal are very unique and can be rolled out on either a regional and or national basis. Bridgestone / Firestone can pick and choose the individual programs that are most appealing to your business. • Once 1 -2 or more programs are chosen we can then structure a program specific to the needs and desire of Bridgestone / Firestone retail locations. • The beauty of all these programs is that everything will be localized for Bridgestone/Firestone retail locations, giving each state its own individual partnership with the state school boards associations, in their state. America’s Schools Program 33