The document discusses the current marketing plan and conditions for ERTEC product sales in 2012. It notes that estimated sales captured less than 1% of the Texas market. It also discusses the challenges with the current distributors strategy of offering ERTEC as one of several products, which divides their focus. The document proposes that Captain Earth LLC focuses on developing the Southwest region starting with eco-friendly city departments. It believes this approach targeting early adopters will lead to increased market share and sales volume over taking the current distributors approach. The proposal is for Captain Earth to become a development partner to increase sales through direct sales and market development efforts, receiving a percentage of new sales resulting from their work.

1. Property of Captain Earth LLC
Not to be reused or redistributed
Marketing Plan

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. 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. The theory examines the process of capturing market share....it
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. 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. 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. To increase market share dramatically
what needs to happen?

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. 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. ERTEC’s Stated Objectives
Increase Market Share through increased Sales Volume……
2012 2013 2014 2015
Texas Annual Sales Growth

11. Can the desired results be achieved by the current
approach?
Current Managed Partners Focus…. Current Structure…

12. Who we’re after….
And Why?

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. Tip of the Iceberg

15. Focused Intensity on Eco Friendly
Entities
Focused Intensity + Time = Unparalleled Success

16. Arlington Ft. Worth Dallas TOTAL
$3,500,000.00
$23,000,000.00
$33,000,000.00
$60,000,000.00

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. How we achieve this…….

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. How Captain Earth fits in…..

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. 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. Network

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. Developmental Partners
Business Model
Phase 1: Direct Sales
 City Storm Water Management Departments
 Flood Districts
 Oil and Gas Industry
 City Agencies
 TxDot

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. 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. 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. 2013 2014 2015 2016 2017
Fixed Cost Variable Cost ERTEC Profit Developmental Partners %

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. 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. 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. 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. 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. How Captain Earth fits in…..

36. A Plan for the Future of ERTEC…
2013 2014 2015 2016 2017
Sales Growth
2013 2014 2015 2016 2017
Market Share

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. 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

39. ERTEC
ENVIRONMENTAL
ENGINEERS
ECO Friendly
City
Departments
NCTCOG
ERTEC
Vs.

41. 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