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TradeShow Marketing Company, Inc. (OTC: TSHO)
Untitled Document
Tradeshow Marketing Company, Inc. (TSHO) is a specialty retailer developing proprietary, private labeled products marketed through five complementary sales channels, which consist of retail, Direct Response Television (DRTV), trade shows, wholesale and online channels. The Company develops high-end consumer products, which are innovative, practical and have universal appeal. Its products are positioned comparatively to the products consumers might find at a Brookstone or Sharper Image store, and typically retail between $30 and $600. Through its marketing subsidiary, Sandstrom OnTV, a specialty retail franchise brand, the Company effectively fuses "As Seen on TV" and
high-end retail merchandise, presented in a single, interactive pop -impresario environment. Tradeshow currently owns and operates two Sandstrom OnTV retail stores in Phoenix, Arizona , has an affiliate model store in Honolulu, Hawaii, and recently achieved FTC certification to sell franchises in 38 states nationwide. Its Phoenix retail stores are on track to produce sales approaching $500,000 each annually.
Tradeshow plans to open 50 Sandstrom OnTV stores in FY 2007 and expand its retail network to 150 Sandstrom OnTV stores across the US by FY 2009. These stores will be operated as franchises. Tradeshow's geographic focus for its retail stores will be states west of the Mississippi River. The Company believes the US market could easily support 300 such stores. Tradeshow has hired franchising experts Tim McCarthy and Norm Friend to develop and launch its area development franchising model. Mr. Friend has written several books on franchising and Mr. McCarthy has spearheaded sales of several hundred successful franchises. In addition, the Company has recruited 'infomercial guru' Billy Mays as its Vice President of Brand Production, Mr. Mays will assist in production, franchise promotion, product development and marketing of new retail franchises.
In addition to its retail expansion, the Company operates a successful direct demonstration business via fairs, tradeshows, mall events and exhibitions throughout North America, along with an e-commerce site, www.ontvco.com. Tradeshow plans to leverage its substantial experience in direct response marketing to drive sales through a fast-growing network of franchised specialty retail stores and exposure through Direct Response Television, (DRTV Infomercials).
Tradeshow's unique business model, which drives traffic to its retail stores through DRTV advertising, multi-channel marketing capabilities and broad-based industry experience, positions the Company for multiple revenue streams and rapid revenue and income gains in the years ahead.
Fast-growing $13 trillion global retail market
The Company is a specialty retailer of products ranging from health and fitness equipment to household and office applications. Worldwide demand for consumer products is rising as a result of changing consumer demographics, increasing disposable income and changes in consumer buying patterns. Global retail sales are expected to increase 32% over the next several years and reach $13 trillion by 2011.
$368 billion US online retail market
Rapid Internet penetration and increasing broadband utilization are fueling online retail sales. Many consumers now make most of their retail purchases online. Consumers can visit retail websites to obtain information about thousands of products, view product demonstration videos and make price comparisons, all from the privacy and comfort of their homes. Online retail sales in the US are forecast to rise 222.6% to $368 billion by 2011. Tradeshow is already experiencing considerable success with its e-commerce shopping site, plans to invest substantially in e-commerce, and has the goal of becoming the market's leader online retailer of specialty and "As Seen on TV" products.
DRTV provide strong sales opportunities
Tradeshow is leveraging its branded product offerings and multi-channel marketing capabilities to capitalize on growth opportunities in the direct selling market, which generated sales of $30.47 billion in 2005. In particular, Tradeshow plans to capture opportunities in DRTV (Direct Response Television) marketing. Industry sales through DRTV channels grew 11.5% annually between 1995 and 2000; direct response television is a $2 trillion worldwide industry today. Tradeshow plans to launch its most successful products via DRTV campaigns, debuting on television home shopping networks and/or 'infomercial' spots.
Multi-channel direct marketing strategy
Tradeshow employs five complementary sales channels to market its products. The Company markets its products through trade shows and exhibitions, television 'infomercials', franchised retail stores, its e-commerce web site and wholesale to large retail clients.
Franchise model will drive profitable growth
Tradeshow currently owns and operates two retail stores that carry its private label and "As Seen on TV" products and plans to build a network consisting of 150 franchise locations over the next three years. The original model store in Honolulu, Hawaii, (owned and operated by TSHO's board member Hashem Sharifi) generates in excess of $1,000,000 in annualized revenues. A 150 store network could easily generate annual sales exceeding $75 million. These stores will be operated as franchises. As a result, Tradeshow's expenditures for rolling out the franchise store network will be minimal and return on its invested capital should be high. Income from franchise fees and royalties alone could exceed $12 million by 2009.
Experienced management team
The Company's management team has in-depth knowledge of direct sales and franchising. Tradeshow's board members and advisors have broad-based expertise in franchising and retailing, leading successful start-ups and developing and designing successful marketing campaigns.
VP of Franchise Sales Tim McCarthy comes to Sandstr?m OnTV, Inc. with prior experience working for several major brands over the past twenty years. He spent over seven years with two specialty retail chains (Natural Wonders and Nordic Track). During his tenure at Natural Wonders, he quickly rose from a field sales management position to Assistant Store Manager and then to Mid-Western District Sales Manager. Mr. McCarthy was eventually recruited by Nordic Track to serve as their Midwestern District Sales Manager, overseeing a territory that included 15 locations in seven states and 230 employees.
In 1988, McCarthy partnered with Area Developers for Northern and Central Arizona with the Mail Boxes Etc. franchise rights. During his tenure with Mail Boxes Etc., he served as Director of Franchise Development for this territory. He was instrumental in overseeing the transition of Mail Boxes Etc. to The UPS Store, earning the coveted "Domestic Franchise Sales Champion" award from UPS in 2000. McCarthy then joined up-and-coming franchisor, Cold Stone Creamery, as Development Manager. During his tenure with Cold Stone, his team awarded over 1,800 franchises in just over 3 1/2 years. McCarthy himself awarded a record 286 franchises and was instrumental in developing Cold Stone's Transfer and Renewal Programs. In December, 2005, he joined Dermacare Laser and Skin Care Clinics as Director of Franchise Development. He joined Sandstr?m On TV in December of 2006.

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