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07.15.2013 captain earthmarketingplan


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07.15.2013 captain earthmarketingplan

  1. 1. Property of Captain Earth LLC Not to be reused or redistributed Marketing Plan
  2. 2. Current Market Conditions for 2012  Estimated $400,000 of product sales by Texas partners.  An estimated 10 total partners in Texas.  Average sales of product per partner in Texas is at $40,000  Based on research, the estimated $400,000 in product sales captures less than 1% of market share.
  3. 3. Current Distributors Strategy  ERTEC product’s is one of several products being offered = Divided Focus  Managed Partners overall success is not tied to ERTEC’s success  They are selling to individuals/ GC’s  Uphill battle due to higher initial cost product  New Product’s are generally harder to sell
  4. 4. The theory examines the process of capturing market concludes, start with the people that believe what you believe, the innovators and early adopters, people that want to protect the environment through sustainable and efficient products….this leads to product adoption….. Eco-friendly City Departments NCTCOG Cities/ Green Engineer Firms Large GC’s Small GC’s Law of Diffusion
  5. 5. Current Distributors Approach: Result….Too Much Trouble and Slow Growth… Eco-friendly City Departments NCTCOG Cities/ Green Engineer Firms Large GC’s Small GC’s
  6. 6. Our Understanding of The Current Conditions “Market share is LOW…” “SALES at $400,000 for 2012…” “So many MARKETS to develop…” “Hard to find the TIME…”
  7. 7. To increase market share dramatically what needs to happen?
  8. 8. Incentive… or lack thereof Why do existing Distributors focus here??? Eco-friendly City Departments NCTCOG Cities/ Green Engineer Firms Large GC’s Small GC’s
  9. 9. MUST Convince Eco-Friendly City Departments First….. Where Captain Earth is going….. Eco-friendly City Departments NCTCOG Cities/ Green Engineer Firms Large GC’s Small GC’s
  10. 10. ERTEC’s Stated Objectives Increase Market Share through increased Sales Volume…… 2012 2013 2014 2015 Texas Annual Sales Growth
  11. 11. Can the desired results be achieved by the current approach? Current Managed Partners Focus…. Current Structure…
  12. 12. Who we’re after…. And Why?
  13. 13. We believe in the product This Product has the potential to capture significant Market share if and only if we reach the left side of the Innovation Curve… This Product is aligned with a greater cause….the push for sustainability and zero waste, the efforts to clean up our lakes and streams We are looking to align with these people…. People who share the same beliefs At Captain Earth we believe in protecting LIFE…. The life of Texas lakes and streams, even human life through our giving efforts We are looking to double the current sales volume in Texas by June 2014….
  14. 14. Tip of the Iceberg
  15. 15. Focused Intensity on Eco Friendly Entities Focused Intensity + Time = Unparalleled Success
  16. 16. Arlington Ft. Worth Dallas TOTAL $3,500,000.00 $23,000,000.00 $33,000,000.00 $60,000,000.00
  17. 17. “These Departments are asking their Cities and Businesses to reduce their waste while they currently utilize wasteful BMP measures…..” The Greatest Impact…. When these Department’s catch on everyone else, including General Contractors, will have to follow suit…..
  18. 18. How we achieve this…….
  19. 19. The Solution Captain Earth focuses on developing the South West Region expanding out from the DFW area while remaining Non- Exclusive…….. performance terms in place to make sure we’re winning Zero Risk with no Additional Cost to ERTEC
  20. 20. How Captain Earth fits in…..
  21. 21. Implications  Greater Market Reach = Increased Market Share  Increased Sales Volume  Non-Exclusive = Commission tied to what we develop/Direct Sales to ERTEC  Eliminate double dipping  Our Success = ERTEC’s Success  Similar to the winning model that is already in place in HOUSTON  Various models in use to determine which model is most effective  Covering a greater area vs. Competing in the same area  One Company, Captain Earth, developing ERTEC vs. One Sales Rep.  A company offers greater product support
  22. 22. Development Partner Model New Development Partner Model with financial incentive based on increased volume of sales. Achieved by making ERTEC the product of choice for municipalities, government agencies, etc..
  23. 23. Network
  24. 24. Captain Earth’s Extended Management Team Jon Dickens  Civil Engineering Degree from Texas A&M University  Project Manager for Multi-million dollar projects  30+ years of experience in the Engineering world Trevor Kleine  Bachelors of Business Administration  Field Office Manager/Project Manager  Belfour Property Restoration – The worldwide leader in disaster recovery and property restoration  Employment: 2010-2013
  25. 25. Developmental Partners Business Model Phase 1: Direct Sales  City Storm Water Management Departments  Flood Districts  Oil and Gas Industry  City Agencies  TxDot
  26. 26. Developmental Partners Business Model Phase 2: Market Development  Work with NCTCOG  Create awareness with City Inspectors  Work with Environmental Council  Build relationships with the Texas Commission on Environmental Quality  Establish Specification for features of ERTEC(Recyclable, Sustainable, Greater Sediment Retention, Greater than Zero Waste)
  27. 27. Developmental Partners Business Model The two phases work hand in hand. Selling the product to city entities will give us leverage in implementing a specification that is in-line with ERTEC’s products.
  28. 28. Financial Implications….based on Economies of Scale Assumptions:  Texas Sales volume will Increase as ERTEC “spec” is established  Fixed cost remain relatively the same  Per-unit Variable Cost should decrease due to increased volume  ERTEC’s profit margin increases with the increased volume and reduced per-unit variable cost
  29. 29. 2013 2014 2015 2016 2017 Fixed Cost Variable Cost ERTEC Profit Developmental Partners %
  30. 30. Implications for ERTEC Worst Case  Current conditions remain the same  Nothings been lost but nothing has been gained  No added cost to you Best Case  Sales Volume in Texas Increases  Significant Increase in Market Share  Variable cost decrease per unit  Profit increase  No added cost to you
  31. 31. Implications for Distributors Worst Case Scenario  Current conditions remain the same  Sales continue to grow at their current rate  Pricing stays the same  Continue to push the product Best Case Scenario  Pricing stays the same  As a result of the NCTCOG specification, their sales increase  Cities search them out for the product they carry
  32. 32. Implementation  Captain Earth receives a % of new sales, resulting from ERTEC product specifications in Texas  The % we make is directly related to Captain Earth’s developmental work Sales from Product Specification Sales Developmental Partners Share
  33. 33. Why Now? For our business model to work, market development is absolutely necessary. Without it, we are extremely limited with no reason for such limitations. This model provides zero risk, resulting in a win-win for ERTEC and Captain Earth. It provides us with the incentive and protection we need to be as successful as possible.
  34. 34. Captain Earth’s Future Plans aligned with ERTEC’s goals Three Year Plan:  10 Franchises in the South West  Capture Significant Market Share  Captain Earth is the brand of choice in the erosion control industry Five Year Plan:  Gain a presence in Coastal Erosion  50 Franchise locations throughout the United States
  35. 35. How Captain Earth fits in…..
  36. 36. A Plan for the Future of ERTEC… 2013 2014 2015 2016 2017 Sales Growth 2013 2014 2015 2016 2017 Market Share
  37. 37. Recap…… Opening A New Market  Through specifying the product and creating awareness we open the market for everyone  Which will increase sales for everyone  We want to participate in every market we open up  Un-exclusive agreement  We’re looking for an incentive to open that door
  38. 38. Overall Implications  No Additional Cost to ERTEC  Zero Risk for ERTEC  Increased Sales Volume = Increased Profit %  Zero Negative Implications for Current Distributors  No change in pricing  Greater Sales Opportunity  Collaborate to create Market Share vs. Compete for Market Share
  40. 40. Our Concerns  We want to have protection for what we create…  Set ourselves up to be as successful as possible because we are exclusively carrying ERTEC  Give our company the stability to take off…  Our success = ERTEC’s Success