FROM: ARTCAMP “ARTESANAS CAMPESINAS” TAXCO MEXICO

DEAR GREG AND DIGITAL PARTNERS SEL THUNDERBIRD TEAM

WE ARE VERY THANKFUL FOR YOUR HELP AND PARTICIPATION
IN ARTCAMP’S ARTISAN-OWNED DISTRIBUTION MODEL PROJECT.

WE HAVE BEEN UNDER A GREAT DEAL OF FINANCIAL PRESSURE FOR A LONG TIME
IN ORDER TO MAINTAIN THE INTEGRITY OF OUR OPERATION

THE ECONOMIC/COMPETITIVE CONDITIONS IN HANDCRAFT JEWELRY PRODUCTION
HAVE NOT BEEN FAVORABLE TO ARTISAN FOR DECADES.

IF YOU CAN REALLY HELP US BECOME PROFITABLE IN A WAY THAT PERMITS OUR COOPERATIVE
TO LEAD OUR COMMUNITY OUT OF CRISIS
BY RE-ESTABLISHING TECALPULCO AS FASHION GENERATOR FOR WORLD MARKETS
AS IT WAS IN THE 1980S WITH THE ABALONE JEWELRY,
WE WILL NEVER FORGET IT. YOU WILL BE HONORED AMONG US ALWAYS

Initial outline created for final presentation deliverable. This is a draft for discussion purposes only.

Presentation Outline
1. Who is Artcamp? “http://www.artcamp.com.mx/pages/inform7.html”
1.1. History “http://www.artcamp.com.mx/pages/objetivos.html”
1.2. Mission “http://www.artcamp.com.mx/pages/Mission.html”
1.3. Current Information / Statistics
2. What financial assistance are they seeking?
2.1. Problem LACK OF PROFITABLILITY DUE TO SMALL MFG-DIST MARGINS, ACCESS TO MARKET ON THE LEVEL OF RETAILERS
2.2. Proposed solution: DIRECT DISTRIBUTION
2.3. Cost $10000USD/INVENTORY $10000USD/INFRASTRUCTURE&SALARIES
$10000 ADVERTISING
= $30000USD
3. Fulfillment & Shipping
3.1. Warehousing
3.1.1. Location
3.1.1.1. To be located in Taxco ROOM ADJACENT ARTCAMP ADMINISTRATION OFFICE IN TAXCO FACTORY
3.1.1.2. Do we have to purchase, rent, or construct a building? What is the cost? ALREADY RENTING THIS SPACE WHICH IS NOT BEING USED
3.1.1.3. How big is the facility (garage size, 1,000 sq. feet)? GARAGE SIZE
3.1.2. Database system for stock keeping as integretad into production process
3.1.2.1. Can we use an off-the-shelf small business product or do we have to build one ourselves? WE HAVE BEGUN TO DESCRIBE USE-CASES
3.1.2.2. If we built one, would we use Excel, Access, or other? SQL SERVER
3.1.3. Current distributors
OUR BEST CUSTOMERS IN 2002 WERE TOURIST INDUSTRY DISTRIBUTORS (GRAND CANYON, BAT CAVERNS ETC.) BUT
OUR BEST OPPORTUNITY FOR 2003 IS IN FASHION JEWELRY

3.1.3.1. We need to reverse their buying power - this is partly achieved by product differentiation
1. UNIQUE LOOK DERIVED FROM PRODUCTION TECHNOLOGY SPECIALIZED HANDCRAFT TECHNIQUE, EXOTIC MATERIALS
2. RURAL WOMENS ARTISANS COOPERATIVE (brand)
3.2. Shipping
3.2.1. Current shipping
3.2.1.1. How are we shipping today? DHL and UPS
3.2.2. New Model
3.2.2.1. USPS (U.S. Postal Service): Are we combining a weeks’ worth of orders into 1 container / large shipment to the U.S. where someone in the U.S. then splits up the individual shipments and releases them to the USPS for final delivery? YES
3.2.2.2. Would we use DHL to get the product from Taxco to the US
DHL or UPS
3.3. Logistics
3.3.1. Where do the current shipments get picked up, in Taxco or nearby city?
DHL or UPS COMES TO TAXCO SHOP TO PICK UP SHIPMENTS
3.3.2. Can we achieve cost savings by driving shipments to, say Mexico City, and then shipping it via DHL, UPS, USPS,etc.? NO
4. Marketing (Sales & Collections)
4.1. Websites
4.1.1. Get links to Artcamp on as many websites as possible
WWW.ARTCAMP.COM.MX WAS GETTING 150 HITS A DAY FOR SEVERAL MONTHS IN 2002, THEN IN NOVEMBER SUDDENLY DROPPED TO ABOUT 50/DAY. WE DO NOT KNOW THE REASON.
4.1.2. EBAY Marketplace and EBAY Stores
4.1.3. It is mentioned that Artcamp is in the process of the arranging something on Yahoo – not sure exactly what this is THE SITE IS PROVIDED BY OUR FRIENDS OF GLOBALMARKETPLACE . IT IS INCOMPLETE AS WE ARE OTHERWISE OCCUPIED AND BECAUSE WE HAVE NOT BEEN ABLE TO REFINE APPROPRIATE OFFERS TO SERVICE VISITORS
http://store.yahoo.com/artcamponline/index.html

4.2. How can we differentiation through: VERY FORTUNATELY, AFTER 10+ YEARS STRUGGLING AGAINST THE FASHION TIDE, THE LOOK IS COMING NOW IN OUR DIRECTION DUE TO LARGE FASHION CYCLE. AND ARTCAMP HAS DESIGNED A PROMISING NEW PRODUCT LINE 2003 THAT WILL FACILITATE PENETRATION OF NEW MARKETS
4.2.1. Packaging
4.2.1.1. Story line of the woman who made the product attached
ARTCAMP HAS A PRINTED GIFT/DISPLAY CARD WITH STORY OF COOPERATIVE, COMMUNITY AND HISTORY
4.2.1.2. Other? CLEAR CELOPHANE PRODUCT ENVELOPES AND COLORED FOMI CARDING FOR POINT-OF-PURCHASE RACK
4.2.2. Quality
4.2.2.1. Testimonials http://www.artcamp.com.mx/AL/t1.html
4.2.2.2. Other?
4.3. Other channels
4.3.1. Do we sell in border cities, like Nogales and Juarez
WE HAVE PLAN TO SELL THROUGHOUT MEXICO
BUT NOT AS FINISHED JEWELRY – AS JEWELRY PARTS
4.4. Negotiation process
4.4.1. How does this process work when distributors ask to see our books and push prices onto us? GET STRONG ENOUGH SO WE DO NOT HAVE TO SUBMIT TO INTRUSIVE PROSPECTS/CUSTOMERS OR BE TEMPTED/FORCED TO CUT PRICES BELOW GOOD MARGINS
4.5. Sales Process
4.5.1. How do we make credit purchases smoother– can we use PayPal?
OUR FRIEND GARY BOND OF GLOBAL MARKETPLACE.COM ,
A NONPROFIT DEVOTED TO ASSISTING 3RD WORLD PRODUCERS,
AFFORDS US USE OF MERCHANTS CC ACCOUNT AT NO CHARGE
4.6. Other products
4.6.1. Are there other non-jewelry products we can easily produce?
CANDLEHOLDERS, GIFTWARE, TABLETOP, HOME, GARDEN....
IF MARKETS ARE THERE AND MARGINS/FINANCING ARE THERE
THE PRODUCTION IS SELDOM THE PRONLEM. HOWEVER
DESIGN/DEVELOPMENT AND PRODUCTION SET-UP COSTS ARE EXPENSIVE AND THE MARKETERS PUSH THESE ON THE PRODUCER
4.6.2. How about seasonal offerings?
VALENTINES DAY, CHRISTMAS....
4.6.3. What is the language learning note I saw?
WE HAVE DEVELOPED A REVOLUTIONARY LANGUAGE LEARNING TECHNOLOGY THAT WE WANT TO MAKE INTO A CDROM PRODUCT WE CAN MARKET ALONG WITH OUR JEWELRY
http://www.techempower.net/0/Editorial.asp?aff_id=0&this_cat=Projects&action=page&obj_id=882
http://www.developmentspace.com/dms/servlet/BS?serviceName=DMSService&ACTION=getProjectLibrary&projectID=1848
http://www.developmentspace.com/dms/servlet/BS?serviceName=DMSService&ACTION=getProjectPage&projectID=1848

4.6.4. Is there a local school helping to build a Spanish language class for Gringos? NATIONAL UNIVERSITY OF MEXICO (UNAM) HAS A CAMPUS AT A LOVELY EXHACIENDA IN TAXCO THIS SCHOOL IS DEVOTED TO TEACHING LANGUAGE TO FOREIGNERS. OUR COOPERATIVE HAVE NOTHING TO DO WITH THIS UNAM SCHOOL HOWEVER
4.6.4.1. How about one that combines jewelry designing? THE UNAM CAMPUS ALSO HAS A JEWELRY MAKING SCHOOL, BUT THIS IS A PROGRAM AIMED AT FOREIGNERS AND HAS NOTHING TO DO WITH US. WE COULD DO SOMETHING SIMILAR IN TAXCO OR IN TECALPULCO BUT WE ARE MORE
NEEDFULLY CONCENTRATED ON GETTING THE ARTISAN-OWNED DIRECT DISTRIBUTION MODEL TO WORK BECAUSE WE ARE NOT AT ALL FINANCIALLY HEALTHY AND HAVE TO WORK ALL THE TIME AT OUR JEWELRY, NEVER CAN STOP IN ORDER TO MEET COMMITMENTS AND BREAK-EVEN
4.7. Name / slogan
4.7.1. What is the name we market ourselves as: ARTCAMP, or something other? ARTCAMP IS FROM ARTESANAS CAMPESINAS
WHICH MEANS COUNTRYWOMEN ARTISANS
4.7.2. Is there a better name, or slogan to provide along with it?
“WE ARE THE PRODUCERS.
THERE IS NOBODY BETWEEN YOU AND OURSELVES”
5. Implementation Timetable
5.1. Fulfillment & Shipping 30-90 DAYS FROM FUNDING
5.2. Sales & Collections 30-90 DAYS FROM FUNDING
6. Financial Statements
6.1. Pro-Forma Invoices
6.2. Statement of Cash Flows
6.3. Balance Sheet