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W.H. Plastics Inc.
Situation

Foreign exchange

Chinese competitors

Increasingly global marketplace

All eggs in one basket

  74% of sales from one customer
Average Monthly Exchange Rates 1998-2008
 1


0.9


0.8


0.7


0.6


0.5
      1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

                        1 $ Canadian = x $ US
WH Plastics

Decision process is controlled (Family business)

Centralized focus on R&D and operations

Extensive product line

Global presence in a variety of industries

Customized, high quality, and service oriented
Industry
Widespread use

Highly competitive

Production efficiency is one of few differentiators

Corporate social responsibility; Green, recycling

High density of production facilities

Technology costs and upkeep are expensive
Your Customer
   Appliance sector
     Speed
     Price
     Quality
   Aerospace and Military
     Durability
     Quality
   Automotive
     Timely
     Price
     Quality
     Volume
     Customer service

The mould gives the customer the upper hand
Problems
New customer and target market uncertainty

Exchange rate makes WH less attractive to US
customers

Downsizing

Lack of Chinese market know-how

Uncertain expansionary path
Target - 9% profit margin

 2006: 3%
 2007: 5.1%
 2008: 7.5% ???
 2009: 9% ???


 Stable costs ---> Drive new revenue
“The best marketing is education”

                     - Regis McKenna
Trade shows
Attend trade shows globally

Demonstrate physical superiority of WH
products

Build network in the community

Gain insight into future trends

Estimated annual cost = $100,000
Online Presence
Target the most likely customers

Cost Per Impression (CPM)

Cost Per Click (CPC)

Purchase Rate

Traffic weighted budget
Supplier Agreements


 Exclusivity contracts with discounts

 Referrals

 Sourcing low value-added parts from China
Month
    3        6        9       12       15     18        21   24

Develop list of keywords


Interview for trade show delegates


Look for agent in China


             Implement initial online ads

              Attend trade shows

                            Monitor and adjust budget

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Wh Plastics

  • 2. Situation Foreign exchange Chinese competitors Increasingly global marketplace All eggs in one basket 74% of sales from one customer
  • 3. Average Monthly Exchange Rates 1998-2008 1 0.9 0.8 0.7 0.6 0.5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1 $ Canadian = x $ US
  • 4. WH Plastics Decision process is controlled (Family business) Centralized focus on R&D and operations Extensive product line Global presence in a variety of industries Customized, high quality, and service oriented
  • 5. Industry Widespread use Highly competitive Production efficiency is one of few differentiators Corporate social responsibility; Green, recycling High density of production facilities Technology costs and upkeep are expensive
  • 6. Your Customer Appliance sector Speed Price Quality Aerospace and Military Durability Quality Automotive Timely Price Quality Volume Customer service The mould gives the customer the upper hand
  • 7. Problems New customer and target market uncertainty Exchange rate makes WH less attractive to US customers Downsizing Lack of Chinese market know-how Uncertain expansionary path
  • 8. Target - 9% profit margin 2006: 3% 2007: 5.1% 2008: 7.5% ??? 2009: 9% ??? Stable costs ---> Drive new revenue
  • 9. “The best marketing is education” - Regis McKenna
  • 10. Trade shows Attend trade shows globally Demonstrate physical superiority of WH products Build network in the community Gain insight into future trends Estimated annual cost = $100,000
  • 11. Online Presence Target the most likely customers Cost Per Impression (CPM) Cost Per Click (CPC) Purchase Rate Traffic weighted budget
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  • 14. Supplier Agreements Exclusivity contracts with discounts Referrals Sourcing low value-added parts from China
  • 15. Month 3 6 9 12 15 18 21 24 Develop list of keywords Interview for trade show delegates Look for agent in China Implement initial online ads Attend trade shows Monitor and adjust budget