Sample Marketing Plan Presentation

1. SAFEX® Product Line
Marketing Perspective and Plans

2. GOALS
! Establish a SAFEX® product line - Met
! Set a framework for a SAFEX® design that
can form the basis of a product line – on-
going
! Establish a continuing marketing approach
to increase sales - Continuing

3. POTENTIAL SAFEX®
CUSTOMERS
! Utility Locators
quot; Smaller businesses; need a cheaper price, less
features, Excavation depths 1 ft x 1 ft. x 3 to
20 ft. deep
quot; Regulations Permitting, can put dry materials
back into hole
! Directional Boring Companies
quot; Uses include utility locating but also have a
need to vacuum up and dispose of spoils

4. POTENTIAL SAFEX®
CUSTOMERS con’t.
! Utilities
quot; Utility locating for purposes of repair and new installation
quot; Must go into tight spaces such as backyards, substations
quot; Unit needs to operate a distance from truck
! Municipalities
as locators and
quot; Can and will do some of the same jobs
utilities, like wet and dry capability

5. POTENTIAL SAFEX®
CUSTOMERS con’t.
! Others
Oil Companies
quot;
Cable Companies
quot;
Pipeline Companies
quot;
Construction Companies
quot;
Water and Sewage Companies
quot;
! Uses can include locating, trenching,
vacuuming spoils

6. Air Excavation Competitors
Vacmasters
!
Excavac
!
Vactron
!
Pacific Tek
!
Servac
!
Utilivac
!

7. COMPETITION for AIR
Excavation
! Vacmasters
quot; Wet or Dry truck
quot; 80 to 200 gal storage
quot; Recently introduced System 1000 to compete with SAFEX® 60
! Excavac
quot; Dry Excavation
quot; 200 gal to 1000 gal
! Vactron
quot; Wet Primarily but uses Viper for air
quot; 100 gal+

8. COMPETITION con’t.
! Pacific-Tek
quot; Primarily water but will add air with under
the hood compressor
quot; 100 gal to 500 gal storage
! SERVAC (Filtration Engineering)
quot; Air excavation and has a patented handtool
with air and water
quot; Has a product line of excavation equipment
and tools

9. COMPETITION con’t.
! Utilivac
quot; Vacuum Unit driven off compressor
quot; Cheap price for a unit that works
quot; Attractive with a rental compressor
! OTHERS – Entries growing in air business as
more competitors recognize that air is being
recognized as a preferred method
! Low entry barriers to either air or water markets

10. CONCLUSIONS
! There is no one size fits all approach
! Design needs to be expandable and have
different size storage for trenching and wet
work
! One model should accommodate 150 scfm
nozzle for hard dirt and larger excavations
! Should have a light and heavy duty version I.e.
3 inch and 4 inch vacuum hose
! Should have a water assist for harder soils or
customer preference

11. Product Line Framework
! SAFEX® 30
! Small machine suitable for UXO and
Demining, simple jobs where speed is not
important
! SAFEX® 60
! Primary usage utility locator and potholes
! SAFEX® 150
! Larger excavator, used in heavier soils, dry or
wet storage capability, application such as
horizontal boring and other jobs that require
large storage

12. Market
! SAFEX® 30 – US Army and other foreign
military, NGO’s
! SAFEX® 60 – Utility locators and smaller
contractors, Utilities
! SAFEX® 150 – Larger contractors and
Utilities

13. Marketing Approaches
! SAFEX® 30
quot; Finish Army contract
quot; Extend contract for additional $; more additional units (I.e. 150)
and to fund international demonstration programs
quot; Gain further participation in Army programs that allow SAFEX®
Jr. and AIR-SPADE® system to be stocked in the US Army’s
arsenal.
quot; No competition exists
quot; Look for a way to pursue foreign customers and NGOs I.e. State
Dept.

14. Marketing Approaches Con’t.
! SAFEX® 60
quot; #1 commercial target unit
quot; Significant market for this size unit as
regulations are requiring more potholing
quot; Targets
quot; Utility Locating Companies
quot; Smaller Contractors
quot; Some specialized utility work

15. Marketing Approaches Con’t.
! SAFEX® 150
quot; Targets large customers such as contractors
who do horizontal boring
quot; Medium size market…..Existing competitors in
this air market
quot; Most competitors target this market I.e. large
units with significant storage for wet
applications

16. Marketing Strategy
! Strategy
quot; Emphasize advantages of dry excavation – Continue
quot; Emphasize advantage of the superior digging power of AIR-
SPADE® to increase productivity
quot; Discounts for a few 1st customers - Continue
quot; Offer a service locally to gain experience and credibility with
competitive pricing service, brings in income from a
demonstrator unit - Continue
quot; Teaming or strategic partners - Continue
# Someone in the business – bring our air excavation
advantage while partner brings in marketing and distribution
channels

17. Marketing Strategy Con’t.
! For better focus segment SAFEX® as a
entity
quot; Separate sales person
quot; Better advertising
! Financing or Leasing alternatives –
Implemented
! Increase margins

18. Marketing Plan – 2000 -2001
! Action Plan
quot; Demo SAFEX® 60 by 1st Qtr 2001 – Completed 3rd Qtr. 2001
quot; Start offering service with a SAFEX® 60 locally
quot; Product Line Announcement at DPC Show in Dec. 2000 -
Completed
quot; Establish a pricing Oct. – Nov. 2000 - Completed
quot; Ads starting in 1st Qtr 2001 - Completed
# Trenchless Technology Magazine
# Underground Focus
# Utility Contractor

19. Marketing Plan – 2000 -2001
Con’t.
! Action Plan Con’t.
quot; Mailing to existing potential customer list and
follow up starting in 4th Qtr 2000 - Completed
quot; New Commercial video required by 1st or 2nd Qtr
2001
quot; Hire a product line/marketing manager (?)
quot; SAFEX® split 3rd – 4th Qtr 2001
quot; Get a SAFEX® in the Army ACT Test

20. Marketing Plan – 2002+
Demonstration unit is needed
!
Start offering service with a SAFEX® 60 locally in 2002
!
New Commercial video in 2002
!
Hire a sales person for demo unit
!
Follow up mailings to ~200 mailing list (from ICUEE, DPC, Mailing
!
Lists)
! Follow-up phone calls to ICUEE and DPC list
! Continue advertising in UGF, Utility Contractor, Trenchless etc.
! Exhibit at DPC as a minimum

21. Demonstrator Issues
! Lack of Demonstrator is hampering SAFEX®
sales
! Can use demo unit to debug product, take to
shows, perform service and provide a lease
product
! Demo unit will require the services of another
sales person
! Demo unit will require additional marketing $ for
exhibit space etc.

22. 2002 Marketing Budget
(without demo unit)
Mailings - $500
!
Exhibit - $5,000
!
Advertising – $6,000
!
Video - $2,500 (if a unit is sold)
!
! 2002 Sales Potential - $60,000 - $100,000

23. Demonstrator Budget
Item Cost
SAFEX 60 Skid (Water $25,000
Assist)
Truck $35,000
Annual Lease Cost of Truck $6,000
Annual Operating Cost of $5,000
Truck
Annual Operating $1,000
Maintenance Cost of Unit
Additional Sales Person $30,000
Increase in Marketing $ $25,000

24. 2002 Marketing Budget
(with demo unit)
Mailings - $1,000
!
Exhibit - $5,000
!
Advertising – $6,000
!
Video - $2,500 (if a unit is sold)
!
Demo Unit Budget - ~$100,000
!
Contingency - $10,000
!
! ~Sales Potential - $600,000