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FiddleStix Overview

1. To be the dominant, innovative supplier in customized, personalized, repositionable room décor and lifestyle

2. This division has the incredible perceived value advantage of satisfying the need for instant gratification and personalization in all target segments

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Market Segmentations Phase One

Kids/Moms Buying for Children Nurseries Bedrooms Bathrooms School Spaces

Phase Two Tweens/Teens

Tweens 8-12 Teens 13-18

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Product DefinitionCustomized and personalized products defined as “decorating packs” allowing the consumer to customize and decorate a specific space. The contents of each decorating pack will vary per price point and market segment.

Benefits The “one and only” lifestyle accessory brand featuring customized

and personalization with the hottest colors, looks and a whole new way to express personal style.

Change “your look” as often as you change “your mind” with repositionable decor.

No skill or talent needed

No tools neededNo time required

End results guaranteed

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Personalized and Customized On-Trend Design with Attitude. Lifestyle and trend driven mix and match products

Coordinating Items in the Jay Franco Line Make a Complete Lifestyle Statement, Creating Repeat Purchase Opportunities

Designed for Fast pace lifestyles. Fits today’s instant gratification generation.

Provides high value decorative options that can change as quickly as a whim or a season.

Customized designed and personalization builds self-esteem allowing kids to take pride in their spaces and know they created their own unique look themselves.

Loved by Moms who knows the product is safe for her home’s surfaces

Today’s Freshest Most Exciting Lifestyle Brand

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Business Environment Market Trends

Borders and wall appliqués were found in Paint and Decorating Sections in Lowe’s, Home Depot, Kmart, Wal-Mart, and Sears

The same two products were also found in the Infant Departments in Kmart, Wal-Mart, Sears, Babies R Us, and TRU

Price points varied from $6.88 to $15.96 75% of juvenile product was licensed Packaging varied from borders rolled around display

cards which were shrink wrapped and pegged to more upscale acetate boxes with 5th hanging panel. Appliques were in a square presentation and shrink wrapped and pegged or lightly rolled, packed in clam shell, and pegged.

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Competitive Environment

Current product is manufactured by Brewster Wallcovering, Borders Unlimited, Imperial (Blue Mountain), York, Betesh, Plaid, or private label.

There is no in-store signage at any account to drive business to this area.

Product in the Infant department is displayed per coordinated vertical license grouping. In the Decorating department, product is displayed in 4’ or 8’ sections with licensed goods mixed in with non-licensed goods. In Domestics, goods are pegged above each coordinated vertical grouping.

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Tweens and Kids/ Moms with Kids Kids Rooms – Wall Play Interaction

Doll house on the wallDress up – paper dolls for the wallsTrain scenes

Room Décor Lampshades, picture frames, shades, bed headboards, light plate covers, hardwood floors

Seasonal; holiday; special occasionsBorders, trims, accents for walls, door, mirrors, windows, ceilings, around ceiling light fixtures

Fun PhrasesScrapbooking for the WallPostersPicturesDecorative Corners

SchoolsDeco lockersClassrooms – learning aids and alphabets to personalizeLunch bags, lunch pails, books, folders, binders, lockers, cell phones, PC’s, frames, screens, iPods, iPads

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Marketing Strategy Category innovator in customization/personalization

Leading home designers and licensing partnerships Development of priority designs Partner with manufacturers to develop products specific to “brand name”

application E-blasts – Partner company will allow us to market to their 100,000

name list of satisfied customers Google Adwords – Search Engine Optimization Insert sales brochure in Jay Franco and CBY product Use PR agency and their lifestyle and home décor experts to place

products in key new product sections of appropriate lifestyle and trend magazines targeting both target audiences. Use in-spine sampling of selected magazines Bloggers – exploit social media Print Advertising

Trade Shows DYI Contests Development of priority technologies and finishes

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Partnership PowerWe have partnered with an 18 year old company which has created the most

robust online professionally produced book-making tool available for children. It includes powerful Flash based freehand drawing tools, paintable backgrounds and stickers, and an image adjustment and upload tool for photos and scanned drawings. These features are combined with the proprietary integration of text authoring tools, as well as a PDF upload tool for incorporating pages or complete stories that have been written in another word processor (i.e. MS Word).

Our partnership extends into their advanced, customized database systems, reporting, training and tracking systems to achieve production speed and quality ratings that are believed to be exceptional in the personalization industry. Well over 99% percent of customers receive their orders on or before the day they are promised, and with less than 0.25% reporting an error in the Company's work. This quality accounts for much of the Company's success and can be verified by online reviews that would otherwise reveal production issues if they existed.

Our partner company produces one of the most successful personalized arts and crafts kits of all time, IlluStory® - Write and Illustrate Your Own Book, and has consistently provided exceptional, high quality and timely production services

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Product speed, quality, and value. The Company believes the best way to achieve long term success and discourage

potential competitors is to keep its primary focus on fast turn-around production times, exceptional product quality, and pricing levels (i.e. free) that seem discouragingly low to competitors, but are possible due to process efficiencies and the experienced based statistics (i.e. Parent purchase rates) only the company knows.

Production. Our highest priority is the task of producing personalized items at the highest possible quality with the best possible performance standards. We believe our partnership company’s ability to customize and fulfill can be duplicated to our product line. Our unique customizable product line, combined with our proprietary software and order fulfillment will serve us well and keep competitors scratching their heads wondering how we do it.

The following is a sampling of our Partner Company's production performance: Total Weighted Turn Time Percentage – 145% of Goal (last 52 weeks as of 3/18/2011)

Based on internal goals that are roughly 30% shorter than the posted times customers are expecting. On Time Percentage (last 52 weeks as of 3/18/2011) o Internal goals – 82.8% o Posted times – 96.2% o Estimated receipt - 99%

Shipping is automatically upgraded on late ship items so that the customer receives their item within the promised times. Quality Rate (last 52 weeks as of 3/18/2011) o Total returns - .96% o Returns due to CBY error – .10% These performance standards and are exceptional in the personalization industry.

The following factors have been fundamental in achieving this performance: 1. Bar Code Scanning. The Company has integrated bar code scanning throughout the production and fulfillment areas for all items in production.

Every item is scanned at every step of production allowing for tight tracking and late item notifications, accurate and efficient information for customer service use, and automatic shipping method upgrading.

2. Production, Fulfillment and Mailing done in our ISO9001:2008 certified facility. FiddleStix procedures will have ISO standards written and adapted.

3. Reporting and Automatic Emailing Our Partner Company brings us the benefit from having a Production Manager with exceptional database and programming

skills. The Company receives reports of performance by item, production process and production personnel, as well as scheduled and forecasted production man-hour demand. All shipping and customer service systems are also integrated with the production database for automatic, conditional customer notifications, exception reporting, and many other systems to allow for quick item retrieval and regeneration.

All systems have been designed with new product growth and scalability in mind and are built on a MySQL database with an advanced table structure.

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FiddleStix Gets It!

Our design solutions dynamically enhance and customize daily life spaces

It’s a life style phenomenon

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Tradeshow Schedule

Houseware Show March Hardware Show May JPMA Show May CHA Summer Show July