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CONSUMER COMMITTEE CONSUMER MARKETING – 2019 PROGRAM ACTIVITY AND BUDGET

STRATEGIC OBJECTIVE: Use , public relations, strategic alliances to build consumer demand and trade awareness for cotton and cotton products as well as use market intelligence to assess opportunities and threats for cotton, influence corporate strategy efforts and leverage program metrics to evaluate and improve tactics for fulfilling Cotton Incorporated’s mission - $32,886,000 TACTIC PROGRAM ACTIVITY ANTICIPATED DELIVERABLES CURRENT STATUS 1. Advertising: Consumer Media, • Run short and long form video • Build a national audience for a new • Life is Uncomfortable (LIU) TV/TV Streaming content on broadcast and cable advertising campaign campaign and specifically First television networks as well as • Estimated 12 month reach and Day ran during key weeks (2019: $8,500,000) streaming services such as FOX, frequency among Women 18-49, 76%, throughout the year. CW, ABC, Roku, Hulu, MTV, BET, 9.5 times and Men 18-49, 65%, 6.6 • Reach and frequency among Freeform, VH1, Bravo, CMT, E!, times (subject to change as media has target audience, women 18-49: TBS, and Food Channel yet to be planned) 74%, 11.5 times; and men 18-49: • Use benchmarks established in 2019 to 66%, 7.7 times. measure campaign effectiveness • Roku helped extend TV messages with younger TV viewers: To date, the streaming video buy delivered 5,719,833 W18-34 impressions; and is projected to deliver 6,926,613 impressions by the end of the year. • Hold for Q4 Ad Tracker (mid- Dec) 2. Advertising: Consumer Media, • Place Cotton commercials as pre- • Estimated 12 month pre-roll video reach • Digital impressions among target Digital roll during video content through and frequency among target audience, audience women 18-34 video networks and digital media Women 18-34, 70%, 8 times and Men 18- (adjusted digital target during (2019: $9,462,000) placements. 34, 69%, 8 times (subject to change as planning): 333MM impressions. • Drive traffic to media has yet to be planned). • Digital & TV combined reach and TheFabricOfOurLives.com • Estimated 1-1.5MM clicks to frequency among adults 18-49, featuring Shop Cotton through TheFabricOfOurLives.com. Approximately 89%, 10.3 times, 1.2B search, social, display banners, 800 million digital media impressions will impressions. and video advertising. be served (subject to change as media • Overall digital campaign has • Develop a series of custom and website measurement plan has yet to delivered 338MM impressions content features through media be planned). and 1.5MM clicks. partnerships including video, • Place branded content on contextually • Implemented Kantar Millward social, editorial, and influencer relevant sites to generate awareness and Brown digital lift study networks. engagement for Cotton. and negotiated several added Consumer Marketing Committee | Page 1

value brand lift studies on social Advertising: Consumer Media, campaigns to measure and Digital cont’d. understand cotton awareness and intent to purchase. • and Bing Search Engine Marketing (paid search) campaigns drove 2.5MM clicks to TFOL.com; 599K directly to Shop Cotton resulting in 71K clicks on products. • 31.8MM video views have been delivered for the brand digitally across Health & Wellness and LIU video assets. Health & Wellness delivered a video completion rate of 97% and LIU at 88%. • The Bustle and Urban Daddy “Check The Label” collaboration launched mid-September. So far, the program has generated more than 200K page views across all content with users spending on average 47 seconds across all content. • Cotton ran five paid social campaigns in 2019 (Blue Jeans Go Green, Know Your Clothes, Health & Wellness, SA Amazon and Denim – currently running) across Instagram, Facebook,Twitter, Pinterest and Reddit. To date, they delivered: 308MM impressions, almost 39MM Video Views and 313MM engagements (engagement metrics include: post reactions, comments, shares, saves, and likes.). 242,398 site visits to

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TFOL.com and 29,170 site visits to BJGG.org as of 10/20. • Denim Campaign is currently still in market until 11/10, Female Farmers will be launching in mid Nov. • Shop Cotton drove 84K clicks to cotton-rich products on ecommerce sites, exceeding benchmark by 86%. Estimated total value of items clicked: $7.7MM. • Shop Cotton drove the most items clicks to these top 5 retailers YTD: Target, Madewell, Urban Outfitters, Cuddel Down and Free People. 3. Advertising: • Run print, digital, and social ads • Place approximately 25 print pages in • Placed 11 print ads, Trade Media in domestic and international publications such as AATCC, Textile complemented with digital ads, publications and websites World, China Textile Leader, and that delivered over 5MM (2019: $450,000) promoting a range of relevant EcoTextile News. Digital properties may impressions and drove 40K industry topics from Cotton include: WWD.com, SourcingJournal, clicking to multiple Cotton Incorporated resources, EcoTextileNews, and LinkedIn. online pages including sustainability, innovations, www.cottoninc.com, technologies, and the Lifestyle www.cottonworks.com Monitor™ publication. • This year three Trade campaigns are running on LinkedIn. Phase I campaign delivered 1.3MM impressions, 1,049 engagements and 245K Video Views. Top performing creative included carousels driving to Lifestyle Monitor info and video pertaining to Cotton Economics. • LinkedIn Lead Gen and Video/Carousel Phase II launching Nov. • Placed 33 nonwovens print ads, complemented with digital ads

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that delivered 531,882 impressions and drove 2,857 clicks to www.cottoninc.com/nonwovens. • Placed 43 cottonseed print ads, complemented with digital ads that delivered 337,724 impressions and drove 563 clicks to www.wholecottonseed.com. • Placed 6 Cotton LEADS℠ print ads complemented with digital ads that delivered over 2.4MM impressions and drove 17K clicks to http://www.cottonleads.org • Paid search for Cotton Today delivered 127,314 impressions and drove 11,872 clicks to www.CottonToday.com 4. Advertising: • DDB NY (creative agency) Year- • Content and advertising exploration, • Agencies delivered on 2019 Agency Fees long assistance in developing, development, and production scope of work. producing, and executing • On-going project management including • Contract discussions planned in (2019: $3,298,000) strategic consumer and trade weekly status reports Q4 for 2020. facing programs. Responsibilities • On-going social strategy and website not limited to: project oversight including monthly web and management, research social analytics reports (qualitative and quantitative), • Management of influencer programs production: TV commercials, • Management of commercial/video online video, social strategy and talent and residual negotiations and playbook, website management payments and analytics, influencer • Development of TV, digital, and social programs, talent negotiations media plans and contracts, print ads, digital • On-going media campaign optimizations banners, and out of and reporting home/experiential marketing. • Weekly status reports • Mindshare NY (media agency) • Digital campaign planning and Year-long assistance in management for custom programs developing, negotiating and executing strategic media plans Consumer Marketing Committee | Page 4

for consumer and trade. • TV Upfront planning presentation and Responsibilities include but are presentation of final plan not limited to: placing ads on • Search Engine Optimization for network and cable TV, online and www.TheFabricOfOurLives.com in print; management of custom • End of the year campaign results content partnerships; and presentation planning and oversight of paid search (Google and Bing) and social campaigns (Facebook, Twitter, Instagram, LinkedIn, Pinterest and Youtube). 5. Advertising: Production • Development of video content • New video content for TV and online, • Production was completed on (TV/online) including talent and consumer website upkeep and various campaigns – Do You (2019: $2,400,000) residuals, production of trade optimizations including new banner ads, Know Your Clothes social print and digital, collateral, and website and social media content animations (video), Health and web management and assets. development, new trade print/digital ads. Wellness (video, digital banners • Use brand ambassadors to drive • Continuation of influencer programs. and social content), Denim awareness of cotton through • Youth programs to be determined. (video); as well as other LIU campaign alignment honing in on complementary assets (display style and benefits messaging. banners, rich media units, etc) • Development of a youth • TheFabricOfOurLives.com marketing initiative intended to website was updated educate consumers on cotton throughout the year using benefits and or sustainability. search optimization insights to increase site performance and searchability and to promote partner programs like Revolve, buybuy Baby, and Amazon. SEO – from January to mid-October, Organic Search Traffic has seen a 10% YoY increase and Item Clicks have seen a 43% YoY increase as a result of ongoing content and page-level optimizations. • Updates to the social media strategy, community and crisis management plan is on-going. • On-going development of social and digital content (videos, Consumer Marketing Committee | Page 5

animations, social cards) including weekly posts for Facebook, Instagram, Twitter, and Pinterest; add organic performance. • Influencer program delivered: (metrics to come mid-Dec) • Young Minds Inspired youth campaign launched with print and digital assets with expected reach of over 8MM students. • Do Something youth campaign garnered over 68K sign-ups and 147MM impressions. • 2020 strategic planning underway. 6. Advertising: • Obtain metrics necessary to • Anticipate two tracking study reports in • Two Nieslen ad tracking reports Consumer Research assess and re-engineer programs coordination with media flighting delivered measuring campaign for maximum effectiveness. • Continuation of marketing attribution awareness and effectiveness. (2019: $140,000) model study • Marketing Attribution Partners concluded yearlong assessment of our media strategy. 7. Public Relations: • Create and distribute traditional • Generate an average of 40 proactive • To date, more than 43 Consumer Media Outreach and multimedia press releases, media-based communications on communications to consumer video news releases, webisodes, strategic focus areas and company media have been made through (2019: $375,000) and general information as activities press releases, direct pitching opportunities arise. • Participate in and/or sponsor events and response to inquiries. that position the company as a resource • This outreach has resulted in to consumer media more than 800 news items with • Collaborate with apparel and categories an estimated ad value of $2 of to amplify positive cotton Million. messages 8. Public Relations: • Create and distribute media • Distribute an average of 20 • The department will exceed this Trade Media Outreach communications and other communications to garner positive goal with approximately 175 (includes Lifestyle Monitor™ materials that illustrate the coverage of the company’s activities industy-facing communications, Outreach) advantages of cotton across all • Create materials that further the inclusive of social media. supply chain links. reputation of the company as a cotton • This was achieved through a (2019: $260,000) resource for the textile trade and range of materials including two business media advertorials, 48 placed articles, Consumer Marketing Committee | Page 6

• Participate in China-based trade and a Graphically Enhanced programs that promote cotton and the Media project reaching a company in the region. potential audience of 58 million, and an influencer video reaching an audience of more than 16,000. • The department executed a six- month consumer-facing in China that featured Seal of Cotton visuals in 766 storefronts of a high-end home textile retailer. 9. Public Relations: • Prepare and disseminate • Create a range of collateral materials and • Created visual and collateral Sustainability materials via an enhanced content citing the cotton industry’s materials around U.S. cotton and social media ongoing environmental gains sustainability gains & goals (2019: $400,000) presence materials such as: • Participate in and/or sponsor events and including: updates to webinars; brief, explanatory conferences that promote facts about cottontoday.com web site; videos on topical issues; etc. that cotton and the environment informative animations; and highlight the range of cotton’s • Aggressively refute misstatements about Board officer talking points. environmental strengths and cotton’s environmental impact • Supported/sposonsored seven other positive aspects of the activities to promote cotton industry. sustainability, including an updated guide to sustainable cotton sourcing by EcoTextile News. • Responded to five articles/postings with negative and erroneous data about cotton’s environmental impact. 10. Public Relations: Increasing the • Generate communications and • Contribute to the gross value of the U.S. • Conducted a qualitative and Value of U.S. Cottonseed and research to maintain/grow cottonseed crop at or above one billion quantitative survey of whole Other Byproducts demand for wholeseed cotton; dollars cottonseed stakeholders to • Work with stakeholders to • Create advertising materials for shape ad messaging & strategy (2019: $885,000) reintroduce value of cottonseed cottonseed oil • Conducted a qualitative and oil to appropriate market • Produce marketing materials to industry quantitative survey of categories organizations cottonseed oil stakeholders to • Leverage direct research and halo • Promote benefits of cottonseed oil to shape ad messaging & strategy effect of other cotton applicable industry trade media outlets advancements to promote

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cottonseed benefits to consumers • Began development of and trade consumer-facing cottonseed oil website • Participated in 2 industry events for oil and 3 for wholeseed. • In process of streamlining advertising and digital communications for 2020. • Exploring collaborations to expand store shelf presence of oil. 11. Strategic Alliances: Strategic & • Revolve x Cotton Program • Curated online cotton shop targeting the • Number of styles offered Retail Partnerships • Timing: women’s contemporary market Total 2,192 (33 featured at the Q1-Q2 • Create the first point-of-sale shopping festival pop-up) (2019: $1,855,000) March 25 – May 20 (8 weeks) pop-up shop opportunity at Revolve’s These styles within the online • Revolve Pop-up Shop: April 13-14 Festival (the complementary event to the shop were tagged with the iconic Coachella in Palm Springs, CA) to Seal of Cotton on product create awareness for cotton to an description pages influential audience • Average retail: $30-$300 • Leverage Revolve’s data driven business • Online shop unique traffic: 68K to optimize program tactics to expand (+58% to Revolve benchmark or reach and encourage incremental cotton comparable featured shops) sales • Festival traffic: 8,500 • Integrated influencer program • Email subscribers: 2.8MM Cotton email unique opens: 1.2MM (43% opened and +2.3% to Revolve email open rate benchmark) • Social media influencer participants: 16 • Social media influencer combined reach: 7.5MM • Total social media influencer post impressions: 14MM • Number of outlets mentioning Cotton participation in Festival: 10 • Press impressions: 55MM • Total program impressions: 99.5MM Consumer Marketing Committee | Page 8

• Total online shop sales: $360K (+56% to Revolve benchmark) • Total festival sales: $16.3K • Sales of product tagged with Seal of Cotton:$15MM Strategic Alliances: Strategic & • Cotton x Amazon Program • Curated online cotton shop targeting the • Number of styles featured: 319 Retail Partnerships cont’d. • Timing: men’s and women’s mass market via the (204 featured in show) Q3 world’s largest retail outlet: Amazon.com • Average retail: $12 - $397 July 8 – August 31 (8 weeks) • Bring the online shop to life via an • Percent of shop sold-out: 25% Montauk Pop-up Shop: July 26-28 experiential point-of-sale shopping pop- • Cotton online shop traffic: up shop at the Montauk Beach House in 79MM the Hamptons • Amazon.com and additional • Leverage data and key insights from last media partner impressions: year’s Amazon program for optimization 92MM (exceeded planned goals • Program amplification and national reach by 11%) via an integrated influencer program • Amazon.com specific media campaign performance: .29% CTR (outperformed Amazon softlines CTR by 3.5 times) • Paid media and social impressions: (metrics to come mid-Dec) • Total participating influencers: 44 (total following: 3.7MM) • Influencer engagement rate: 3.14% (Average engagement rates depend on size of follower count: For influencers with 100K- 1M followers, engagement rate is 1.2%. Influencers with 10K- 100K followers, engagement rate is 2.4%. Influencers with 1K-10K followers, engagement rate is 4.4%) • Number of media outlets who covered the Montauk pop-up shop: 18 • Press impressions: 4B • Cotton sales: $10.6MM (+122% to LY sales) Consumer Marketing Committee | Page 9

• Total program impressions: TBD

Strategic Alliances: • buybuy BABY x Cotton Program: • Baby and toddler online shop featuring • Number of styles offered in Strategic & Retail Partnerships Seal of Cotton Program cotton apparel and home goods (bedding, shop: 4,125 cont’d. • Timing: bath, nursing/feeding, mattresses and • Homepage banner impressions: Q4 pads) for boys and girls • Social media impressions (BBB October 9 – December 31 • Seal of Cotton integration onto main and Cotton): product images and onto description • BBB email subscribers: 3.4MM *NOT COMPLETE: MID-CAMPAIGN pages • BBB email opens: RESULTS BEING DELIVERED END OF • In-store promotion • BBB SEM: NOV/EARLY DEC • Total program impressions: • Number of styles featured: • Number of stores: 118 • Total shopping carts with program signage: ALL carts in all stores • Total in-store program bag stuffers: 500K • Total e-com box stuffers: • Revenue generated: 500K • YOY comparison (views): • YOY comparison (orders): • YOY comparison (revenue): Strategic Alliances: • Retail Trade Outreach Campaign • Create a new and unique approach for • LinkedIn stats: Strategic & Retail Partnerships • Timing: retail partnership opportunity outreach (metrics to come mid-Dec) cont’d. Q4 via digital and physical marketing materials • Create a marketing campaign to promote via LinkedIn 12. Strategic Alliances: Consumer • Create awareness for cotton • Educate with expanded cotton-centric DENIM COLLECTION & Sustainability Initiative (Blue sustainability and opportunities sustainability messaging PROMOTION Jeans Go Green™ denim for engagement and action • Amplify program message recycling program) through the denim recycling • Leverage live & digital activities to BJGG.org Analytics program generate positive PR on a local and • Sessions: increased by 500% (2019: $680,000) national level (127,047) • Increase event-based, digital and social • Users: increased by 503% opportunities to engage with consumers (100,829) • Distribute insulation to strategic • PageViews: increased by 429% organizations including disaster relief (377,375)

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• Impact our community on behalf of our • Number of PageViews/Session: industry 2.97 Strategic Alliances: Consumer • Bounce Rate: 6.97% Sustainability Initiative (Blue • Avg Vist Duration: 1:21 Jeans Go Green™ denim • Traffic from Organic Search: recycling program) cont’d. increased by 485% (35,331) • Traffic from Social: increased by 988% (8,402) • Traffic from Direct: increased by 428% (23,346) • Traffic from Paid Search: increased by 328% (13,085) • Traffic from Referral: increased by 272% (8,612) • Traffic from Email: increased by 1,184% (796) Most Visited Page: Recycle Denim Paid Search:

• Impressions: 203,888

• Clicks to BJGG: 13,308

Paid Social:

• Impressions/Reach to deliver on

Awareness: 94.8MM

• Clicks to BJGG.org: 29,250

Retail Promotion throughout ‘19:

• Activation in all 50 States • +2,200 brick & mortar locations • 29 Consumer-facing Promotions - AEO - Ariat - Beija Flor - Bloomingdales – NY - Boot Barn - Denim Habit - Frame - Garage - In-Jean-Ius - J.Crew - J. Crew Factory Consumer Marketing Committee | Page 11

Strategic Alliances: Consumer - Kimes Ranch Sustainability Initiative (Blue - Levi’s Jeans Go Green™ denim - Level 99 recycling program) cont’d. - Luxe Leisure - Madewell - Mom’s Oganic Market - ONS - Opening Ceremony - rag & bone (U.S. & Taiwan) - Shopbop (NY Popup) - South Moon Under - Theisen’s - Themis & Thread - Throwback Junction - Universal Standard - Velvet - Dallas - Wilco - Zappos College Program (spring & fall) • (4) Paricipating Schools o Azusa Pacific University o Florida State University o University of Cincinatti o University of Minnesota • Total Student Population for Exposure: approx. 138,030 • Social Engagement o Posts: 37+ o Points of Engagement (likes & comments): 1000+ • Earned Press Coverage (digital, print, & broadcast): 5+ Corporate Social Responsibility Contributions • A variety of business and organizations contribute significant quantities, notables include: - Abercrombie & Fitch - AMO Denim Consumer Marketing Committee | Page 12

Strategic Alliances: Consumer - Cone Sustainability Initiative (Blue - Gap Jeans Go Green™ denim - Good 360 recycling program) cont’d. - Harley Davidson - JCP - Old Navy - Oregon Dept. of Corrections - Phytogen - Stitch Fix - Unifirst - VF - Wrangler • Mail-in contributions o Continue to receive over 1,000 pieces mailed by consumer/month (self- paid) • Denim Days Event o Attendees: 4,500 o Denim Collected: (estimated) 3,500 o (2) Influencers Audience: 210,000+ ▪ Social Posts: 12 o Program Press Impressions: 31MM o PR Placements: 6 • America Recycles Day - #DenimStackChallenge o # Posts o Program Impressions: o Social: o Influencers: o PR: o Event Attendance: COLLECTION IMPACT • Total Denim Collected (to-date): 800,000+ lbs (formula: 1 lb = 1 pair) Consumer Marketing Committee | Page 13

Strategic Alliances: Consumer • Total Waste Diverted From Sustainability Initiative (Blue Landfills (to-date): 400 tons Jeans Go Green™ denim INSULATION recycling program) cont’d. (from ’18 collections) • Approximately 500,000 sf have been distributed to various grant recipients and Habitat for Humanity afffiliates across the country as well as Grant Recipients including the Fuller Center for Housing NY and a Cary, NC, Firestation 13. CSPM: Market Intelligence • Retail Monitor™ Metrics • Execute the Retail Monitor™ survey in • Conducted quarterly Retail Assessment the U.S. market to obtain reliable market Monitor™ assessments on (2019: $465,000) • Lifestyle Monitor™ Survey metrics and assess competitive threats 100,000 products in the U.S. • Conduct a continuous evaluation of U.S. • Economic Analysis market to obtain reliable consumers to assess key trends, market market metrics for adult opportunities and threats for cotton products through the Lifestyle Monitor™ apparel categories; while survey cotton’s share is down in a few • Conduct analysis to influence product key categories for women’s & development efforts men’s apparel. There was an • Analyze economic fundamentals that increase in men’s & women’s impact global cotton production and athletic apparel and women’s consumption knit shirts and pants compared to last year. The fourth quarter research is currently fielding. • Conducted evaluations of 6,000 U.S. consumers to understand key trends & market opportunities for cotton products in areas including performance features, denim, voice-assisted shopping patterns, Gen Z, back-to-school, and holiday shopping.

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• Analyzed economic fundamentals & communicated results to market participants. • Fielded 256 information requests: 70 requests about cotton prices & economics; 186 requests for retail & consumer research. 14. CSPM: Corporate • Produce and disseminate analysis • Produce and disseminate key Produced & disseminated: Dissemination of market information to assist publications • Economic Publications and influence current and future o Cotton Incorporated’s Economic o Monthly (12) (2019: $110,000) cotton users in the global supply Letter ▪ Monthly Economic Letter chain o The Executive Cotton Update ▪ Executive Cotton Update • Assist Cotton Council o Supply Chain Insights International with global • Execute fiber economics and market o Weekly (52) intelligence collection, analysis, research presentations and seminars in ▪ RFD-TV television and dissemination strategic markets with key companies interviews • Leverage data for content creation to be ▪ Pass-through updates used in digital consumer and trade ▪ Market share updates efforts ▪ Export reports • Assist CCI in research development, • Publications management, analysis, and production of publications and presentations based o Video on Holiday shopping on joint research efforts o 4 internal cotton trend reports o 3 video insights on Denim, Global Online Shopping Trends, and the Extended Size Market o 3 Supply Chain Insights on Childrenswear, Intimates, and Baby Care Diapers & Wipes o 2 Ten Facts on Back-to- School Shopping and Organic Cotton • Presented research on the importance of comfort,

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versitiliy, and performance features among global consumers when buying clothes as well as concerns about the environment including microplastics and fiber safety in clothing, and product-focused research on denim and activewear as well as economic outlook and cotton fundamentals at CCI events and meetings. 15. CSPM: Strategic Research and • Conduct strategic research to • Strategic research may include: • CSPM staff conducted global Program Metrics further corporate efforts environment research to assess cotton’s research on the childrenswear • Evaluate Cotton Incorporated durability based on consumer usage, an market in Brazil, China, France, (2019: $300,000) program activities evaluation of cottonseed awareness, Germany, India, Mexico, U.K, and/or research to substantiate cotton claims versus competitive fibers and the U.S. among 8,000 • Partner with CCI to conduct market parents ages 25-50. The research specifically in China, India, research was conducted to Mexico, and other countries as assess attitudes of parents and appropriate children toward cotton and • Metrics to assess Cotton Incorporated’s competitive materials when program activities may include surveys shopping for childrenswear among current industry contacts to products and to identify assess usage and efficacy of services as well as management of consumer opportunities and challenges research to assess communication for cotton in this market. outreach • Staff conducted a Transparency Study in the U.S., China, Germany, Mexico, and the U.K. among 2,500 respondents. Slightly more than a third (36%) of consumers say they want to know everything about where their clothing came from and how it was made, but most want an easy summary (56%)

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conveniently located on a website (55%) or hangtag (53%). • Managed & conducted two brand tracking surveys with Harris Insights & Analytics to measure impressions of the advertising campaign & other brand marketing efforts as well as two surveys to assess consumers’ awareness and attitudes toward cotton to be used in a marketing attribution model for communication placement. • Collected, analyzed & presented Chinese, Indian, Japanese, Mexican, Thai consumer data in China, the U.S., Mexico, Japan, Thailand, Hong Kong, Seoul, and India. Combined, the global research included over 35,000 products audited & almost 24,000 interviews.

16. Information Technology • Information technology support • Information technology support • Continuing to receive Support adequate support

(2019: $57,000)

Total Consumer Marketing Committee Program Budget 2019: $32,886,000

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