Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

Acoustic Treatment onDiesel Generator SetMarketing Plan 2010

ISTIQ Noise Control Sdn Bhd28-2, Jalan Sri Permaisuri 9, Bandar Sri Permaisuri,

Cheras,, Kuala Lumpur. 56000+603-9172 7205/6+603-9172 7204

[email protected]

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by_______________ in this marketing plan is confidential; therefore, reader agrees not todisclose it without the express written permission of _______________.

It is acknowledged by reader that information to be furnished in this marketing plan is inall respects confidential in nature, other than information which is in the public domainthrough other means and that any disclosure or use of same by reader, may cause seriousharm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a marketing plan. It does not imply an offering of securities.

Table of Contents

1. Executive Summary....................................................Error! Bookmark not defined.2. Situation Analysis.......................................................Error! Bookmark not defined.

2.1. Market Needs ......................................................Error! Bookmark not defined.2.2. The Market ..........................................................Error! Bookmark not defined.

2.2.1. Market Trends..............................................Error! Bookmark not defined.2.2.2. Market Growth.............................................Error! Bookmark not defined.

2.3. The Company ......................................................Error! Bookmark not defined.2.3.1. Mission.........................................................Error! Bookmark not defined.2.3.2. Product Offering ..........................................Error! Bookmark not defined.2.3.3. Positioning ...................................................Error! Bookmark not defined.2.3.4. SWOT Summary..........................................Error! Bookmark not defined.

2.3.4.1. Strengths ...............................................Error! Bookmark not defined.2.3.4.2. Weaknesses...........................................Error! Bookmark not defined.2.3.4.3. Opportunities ........................................Error! Bookmark not defined.2.3.4.4. Threats ..................................................Error! Bookmark not defined.

2.4. Competition.........................................................Error! Bookmark not defined.3. Marketing Strategy.....................................................Error! Bookmark not defined.

3.1. Value Proposition................................................Error! Bookmark not defined.3.2. Critical Issues ......................................................Error! Bookmark not defined.3.3. Financial Objectives............................................Error! Bookmark not defined.3.4. Marketing Objectives ..........................................Error! Bookmark not defined.3.5. Target Market Strategy........................................Error! Bookmark not defined.3.6. Messaging............................................................Error! Bookmark not defined.

3.6.1. Branding.......................................................Error! Bookmark not defined.3.7. Strategy Pyramids ...............................................Error! Bookmark not defined.

4. Marketing Mix ...........................................................Error! Bookmark not defined.4.1. Product Marketing...............................................Error! Bookmark not defined.4.2. Pricing .................................................................Error! Bookmark not defined.4.3. Promotion ............................................................Error! Bookmark not defined.

4.3.1. Advertising...................................................Error! Bookmark not defined.4.3.2. Public Relations ...........................................Error! Bookmark not defined.4.3.3. Direct Marketing..........................................Error! Bookmark not defined.

4.4. Service.................................................................Error! Bookmark not defined.4.5. Sales Plan ............................................................Error! Bookmark not defined.

4.5.1. Sales Strategy...............................................Error! Bookmark not defined.4.5.2. Sales Process................................................Error! Bookmark not defined.

4.6. Implementation Schedule....................................Error! Bookmark not defined.5. Financials ...................................................................Error! Bookmark not defined.

5.1. Break-even Analysis ...........................................Error! Bookmark not defined.5.2. Sales Forecast ......................................................Error! Bookmark not defined.5.3. Expense Forecast.................................................Error! Bookmark not defined.5.4. Contribution Margin............................................Error! Bookmark not defined.

6. Controls......................................................................Error! Bookmark not defined.6.1. Implementation....................................................Error! Bookmark not defined.

Table of Contents

6.2. Keys to Success...................................................Error! Bookmark not defined.6.3. Market Research..................................................Error! Bookmark not defined.6.4. Contingency Planning .........................................Error! Bookmark not defined.

Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

Page 1

1. Executive Summary

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2. Situation Analysis

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2.1. Market Needs

Whenever there is a power failure supplied by the Tenaga Nasional Berhad (TNB), DieselGenerators Set is normally will be used as an alternaltive back up. This requirement is usuallyrequired by factories and buildings in order to ensure continous supply of electrical power.However, Diesel Generator Sets is also known to be one of the source to emit toxic exhaust gasesand annoying noise.

In order to control the emmision, the Department of Environment (DOE) as set a guidelines underSection 36, Clean Air Act 1978 - which among others requires that Diesel Generator Sets to beinstalled together with acoustic treatment system. The system shall consist of DischargeSilencers, Intake Silencers, Exhaust Silencers and Acoustic Doors.

As an acoustic company which providing those products required by the Diesel Genset suppliers,we are in position to provide those needs. The market is expected to grow as the requirement ofthe backup power and environment awareness increases.

2.2. The Market

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Market Analysis2010 2011 2012 2013 2014

Potential Customers Growth CAGROEM Genset Suppliers 0% 0 0 0 0 0 0.00%Electrical Contractors 0% 0 0 0 0 0 0.00%End Users 0% 0 0 0 0 0 0.00%Total 0.00% 0 0 0 0 0 0.00%

Market Analysis (Pie)

2.2.1. Market Trends

Since the requirement to control the noise and exhaust emmission is impose by the DOE,therefore the needs is basically to comply to that requirement. As such, the trend willcontinue as it is before which are:-

OEM Genset Suppliers

Electrical Contractors

End Users


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Products & system that is acceptable to the DOE The lowest price Fast Delivery - within 2-5 days Customer Service - Many customers requires these equipment to be delivered

together with the Generators Set, so shipment must arrive when they arepromised, otherwise the project sechedule will be effected.

Market Analysis (Trends)

2.2.2. Market Growth

The requirement of the back up power has experienced an average annual participationgrowth rate of 6% for the past five years. This is indicative of the growing needs of themarket we serve. Based on power requirement projections, we expect to experienceincreased participation growth between 9% and 11% annually over the next threeyears. These trends are monitored, and to the degree possible, used to help predict futureprogram demands.

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Market Analysis (C.A.G.R)

2.3. The Company

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2.3.1. Mission

ISTIQ Noise Control Sdn Bhd is a full-service engineering company that specializes innoise abatement for building and industrial application. Since 1995, ISTIQ hascontributed to the success of over 200 projects nationwide with its acoustical expertise.From the noise survey of a site in Sabah, to the supply of acoustical enclosures in Penang,and the construction of an acoustical compressor building for a nitrogen manufacturingplant in Usan, Nigeria - ISTIQ delivers guaranteed noise control solutions - when youneed them, and at affordable prices.

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OEM Genset Suppliers Electrical Contractors End Users


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2.3.2. Product Offering

A typical design of Acoustic treatment for genset room normally will reduce the noiselevel down to 75 to 85 dB(A) measured at 1 meter away from the genset house. However,the noise can be designed to achieve better if the requirement call for it.

In Malaysia, the Department of Environment (DOE) guidelines on the AcousticTreatment is to control the noise level to 65 dB(A) during daytime and 55 dB(A) duringnighttime, measured at the boundary of premises.

Control At Source

The best way to treat noise is always to do it at the source and for Generator Sets, thereare three major noise sources produce by the gensets: -

Noise emitted by the Radiator Fan Noise emitted by the Exhaust System Noise emitted by mechanical engine itself

Acoustic Equipment for Noise Control treatment in the generator sets room mainlyconsists of the following: -

Fan Discharge Silencers Intake Silencers Exhaust Silencers Acoustic Doors

2.3.3. Positioning

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2.3.4. SWOT Summary

The SWOT analysis covers strengths, weaknesses, opportunities, and threats. Strengthsand weaknesses are generally internal attributes, which we can address by changing ourbusiness. Opportunities and threats are generally external.

Overall, the mix is exciting. We live in an age of growth, change, and businessrevolution. The Internet offers us opportunities and threats. We need to make our dealingwith it one of our biggest strengths, to minimize our weaknesses.

2.3.4.1. Strengths

1. True expertise. All of our staff know this area very well. Ourexperience and expertise is at par if not better than anybody we knowof in this particular niche area.


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2. ISO Certified Company. We are one of the two caompny that have theISO Certification.

3. Well Establish Execution System. We have a very well establishsystem to deliver products reqyuiremnt in a very short time.

4. Contacts. Years of industry experience means a lot of word-of-mouthmarketing, contacts, and networking.

2.3.4.2. Weaknesses

1. Price in not competitive. Our price as compare with the next marketleader is about 15% higher.

2. Weak in Comunication. The communication between production andsales, sometimes lead to waste of resourse i.e, manpower andtransportation.

3. Lock set problem - Acooustic Door. Unending problem on the lockset.Pull down our margin for replacement and repair

4. Lack of Marketing Staff. We only one dedicate sale force to look in thismarket. The market is big enough for at least one more sale staff.

2.3.4.3. Opportunities

1. Requirement of Fire Rate Door. Should our door can be fire ratedcertified, the growth rate can be at least 10% a year.

2. Awareness of the Environment. Malaysian goverment just committedto reduce the emission of CO2. We should look into add-on productthat not only reduce noise but the CO2 as well.

3. Oversea Market. Middle East and Africa market is growing. Thistechnology is still not widely use around this area.

4. Internet potential for selling products to other markets

2.3.4.4. Threats

1. Future/potential competition from within your own staff2. A slump in national and world economy3. Inforseen govermental regulatory actions.4. Difficulty in getting the skill workers

2.4. Competition

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3. Marketing Strategy

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3.1. Value Proposition

Providing quality service is critical. Our business and individual clients judge our competencebased on how we treat them and the given problem that need to be solved. This is their primary -and in many cases their only - measurement of our capabilities. Our Value Proposition to theclient is that we contribute to their design, engineering and project planning work. We will workclosely with our clients to make sure we know what their goals are, and where they want to be inthe future so that every service we provide is personal and custom-tailored for our clients.

3.2. Critical Issues

The most critical issue is repeat business. We can't build this company on a faulty foundation; wehave to have a core group of satisfied clients who come back to us on a regular basis. We can'tafford to spend the capital it would take to generate new clients constantly. The repeat businesscosts about a tenth as much in sales and marketing as the new client.

Repeat business is built on the correct strategic mix of excellence in delivery, clearcommunication of promise and scope, and follow through.

Most of our competitors build on a structure that has the partners selling the jobs and new hires,bright young people without a lot of experience, delivering. We can't afford to follow that lead.We can use a staff to leverage some of the footwork and analysis work, but ultimately our workmust be our own.

3.3. Financial Objectives

1. To grow our sales more than 5% over during a three-year period, from RM1.8 in 2010 to$2.3 million in 2012.

2. To significantly decrease our sales and marketing expenses as a percent of sales: from34.5% this year to 26% by 2012.

3. To increase contribution margin from 5% to 8% over three years.

3.4. Marketing Objectives

1. We need to establish ourselves as experts. This means being quoted in major trade press,speaking at industry events, and gaining recognition. Our measurable and specificobjective is to be introduced as an acoustic experts and a reliable engineering company.


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1. We need brand-name reference clients. By the end of this year, we need three majorbrand names we can cite as clients. We need to be able to reference by name and contactphone number.

1. We need at least one client in each of four main regions. Nothern, Central, Southern andEastern region.

3.5. Target Market Strategy

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3.6. Messaging

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3.6.1. Branding

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Target Market Messaging

Market Segments MessagingOEM Genset Suppliers -Electrical Contractors -End Users -

3.7. Strategy Pyramids

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4. Marketing Mix

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4.1. Product Marketing

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4.2. Pricing

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4.3. Promotion

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4.3.1. Advertising

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Milestones

Advertising Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Advertising Budget $0

4.3.2. Public Relations

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Milestones

PR Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal PR Budget $0

4.3.3. Direct Marketing

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Milestones

Direct Marketing Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Direct MarketingBudget

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4.4. Service

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4.5. Sales Plan

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4.5.1. Sales Strategy

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4.5.2. Sales Process

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Sales Account Plan

Target Accounts History Status AnnualSales

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Existing Key Accounts History Status AnnualSales

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4.6. Implementation Schedule

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Milestones

Advertising Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Advertising Budget $0PR Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal PR Budget $0Direct Marketing Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Direct MarketingBudget

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Web Development Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Web DevelopmentBudget

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Other Start Date End Date Budget Manager DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentName me 1/1/2006 15/1/2006 $0 ABC DepartmentOther 1/1/2006 15/1/2006 $0 ABC DepartmentTotal Other Budget $0Totals $0

5. Financials

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5.1. Break-even Analysis

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Fixed Costs

CostRent or Lease $0Professional Services $0Payroll $0Interest Payments $0Utilities & Telephone $0Non-discretionary Marketing Expenses $0Other $0Total Fixed Costs $0

Break-even Analysis

Monthly Revenue Break-even $0

Assumptions:Average Percent Variable Cost 0%Estimated Monthly Fixed Cost $0

Break-even Analysis


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5.2. Sales Forecast

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Sales Forecast2010 2011 2012

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Direct Cost of Sales 2010 2011 2012Row 1 $0 $0 $0Row 2 $0 $0 $0Row 3 $0 $0 $0Subtotal Direct Cost of Sales $0 $0 $0

Sales Monthly

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5.3. Expense Forecast

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Marketing Expense Budget2010 2011 2012

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5.4. Contribution Margin

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Contribution Margin2010 2011 2012

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------------ ------------ ------------Cost of Goods Sold $0 $0 $0

Gross Margin $0 $0 $0Gross Margin % 0.00% 0.00% 0.00%

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6. Controls

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6.1. Implementation

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6.2. Keys to Success

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6.3. Market Research

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6.4. Contingency Planning

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Appendix

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Sales ForecastJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SalesRow 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Row 2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Row 3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecRow 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Row 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Row 3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Appendix

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Marketing Expense BudgetJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Percent of Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Appendix

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Contribution MarginJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Direct Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Cost of Goods Sold $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecName me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Percent of Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Contribution Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Contribution Margin / Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

Documents

error bookmark

e bookmark

erro bookmark

marketing strategy

marketing objectives

product marketing

sales plan

marketing mix