Page 21 - ASCOT GROUP COMPLETE DOCUMENT (2)

Peer to peer marketing, direct sales and Multi-Level Marketing (MLM)

The more digitally connected and networked we all become, the more peer to peer marketing is the
future of distribution. The best and the quickest way to reach a new market is through people who can
influence their network. To achieve this, you need to mobilize your happiest consumers and convert
them to become your brand advocates who will become the voice of your brand.

Ascot Group’s segregated marketing company operates on a ‘Peer Referral Program’, which allows
happy customers to become the distributor and share in incentives usually reserved for traditional
distribution houses or 'professionals'.

Simply by introducing a 'friend' to the Ascot Groups’ online Robo Planner platform, existing Ascot
Group customers can share in the ‘introduction' commissions and fees.

This strategy is a particularly important in reaching Millennials who are highly influenced by peer
recommendations. Eighty-nine percent of Millennials trust recommendations from friends and family
- more than traditional advertising or claims by the brand, and nearly half (44%) of Millennials are
willing to promote products or services through social media in exchange for rewards. The rise of the
middle class in emerging markets has captured the enthusiasm of global businesses, especially in the
context of weak demand growth from developed economies.

Word of mouth plays a more central role in the decision journeys of emerging-market consumers than
for those in developed markets. Consumers in Africa and Asia reported higher trust in word of mouth,
sometimes more than 70 percent in China and 90 percent in Egypt, compared with less than 30 in
developed markets. The increasing wealth, large growing population of Millennials, their love and
access to technology - together with rapid growth in direct sales and peer to peer marketing on social
platforms makes the emerging market an ideal target market for both our products and our go-to
market strategy.