The document outlines a presentation agenda for a GOTeam China expansion plan. It discusses conducting market research in Shanghai, partnering with a logistics company, and launching a water softening and reverse osmosis system in Shanghai over 3 years before expanding to other Chinese cities. It estimates over $33 million in total profit over the 3 year period from sales of the water systems, filters, and salt in 4 major Chinese cities. The plan aims to eventually develop an affordable reverse osmosis system and donate funds to improve water quality in rural China areas.

1. GOTeam China

2. Presentation Agenda
 Market
 Product
 Marketing Strategies & Costs
 Partner
 Logistics
 Estimated Revenue
 Positive Impact
 Contribution to the GO
Market
Product
Marketing
Partner
Logistics
Revenue
Impact
Contribution

3.  Population: 1.3 billion
 Urban population: 43% of total population
 Rate of urbanization: 2.7% annual rate of
change (2005-10 est.)
 GDP global rank: #3
 Behind the European Union and the U.S.
 GDP, real growth rate: 10.3%
 GDP per capita: US$7,400
 Exchange Rate: 1 USD = 6.2452 YUAN
The Market: China

4. Market’s Problem
 Half of China’s tap water failed to meet national
standards in 2009
 Water treatment plants using traditional technology
cannot eliminate heavy metal pollutants
 Contamination from old water pipes
 Emissions from manufacturing, sewage, industrial spills
and extensive use of agricultural fertilizers are major
contributors to the lowered drinking quality across the
PRC

8. Market’s Demand

9. Product: Who are we?
 Currently owned by Warren
Buffet, apart of Berkshire
Hathaway’s Marmon group
 Manufacture 97% of their
products  High quality
control
 $1 Billion in US Sales (2011)

10. Our Target Market
 The Urban Commercial Sector
 Hotels, Apartments, Builders, Restaurants, Hospitals, Hea
lth clubs, and Office buildings
 Secondary Market: Residential home owners

11. Product Line
 Water Softening System
 Selling Price: $18,000
 Eliminate: Soap scum in the shower
and tub
 Damage due to scale in your pipes and
appliances
 Stains on your
sinks, tubs, showers, and clothing
 Increases the water safety of
Commercial Properties
 Salt Selling Price: $5/bag
 20 Bags/unit
 2x per year
 First fill free with installation

12. Product Line
 Reverse Osmosis System
 Selling Price: $1,500
 State-of-the-art filters will
improve the quality of water
from wells or municipal supplies
alike
 Eliminates tastes and odors in
drinking water
 Further eliminates
Arsenic, Lead, Nitrates, and
other contaminants
 Filter Costs: $100
 Once a year

13. Marketing Plan
 Price
 Commercial System: $18,000
 RO System: $1,500
 Filters: $100
 Salt: $5/bag
 Payment Terms: 60% down
 Place
 Shanghai
 Shandong
 Fujian
 Beijing
 Promotion
 Sales Reps (Networking)
 Expositions (Home Shows)
 Promotional Items
 Advertising: Subway Stations
Price
PromotionPlace

14. Marketing Budget
Item Budget
Travel Cost (Joy Travel) • $1,000 x 3 = $3,000 for round trip
Dallas, TX to Shanghai (PVG).
• $5,000 Total Travel Costs
Marketing Research $1,000,000
Legal Costs $500,000
Home Shows/Expositions 45 (15 a year) @ $65 each = $2,925
Promotional Items $100,000.00 x 3 years = $300,000
Subway Advertisements $2,000,000.00 over the span of 3 years
Total Cost $3,807,925.00

15. Partner

16. Hornet Import & Export Group
 Located in the Zhejiang and
Guangdong provinces.
Relatively close to Shanghai
and many other busy ports.
 Storage facilities are made for
large quantities of stock which
in return will lower our cost per
unit.
 Global distribution headquarters
are located in China. Very
Established and aware of the
procedures for importing and
exporting goods in China.
 All manufactured goods will be
shipped over seas to our
distribution warehouse. From
there, the products will be checked
for damages, then they will be
distributed and installed at the
proper destination.
 Hornet is the most up to date and
closest modern warehousing facility
in China. From storing to
transporting goods, they have
proven to be the most reliant and
efficient importer of goods in China.

17. Logistical Plan

18. Logistical Plan Cont.

19. Time Line
January -
March
• Marketing Research in Shanghai
• Move into Headquarters
• Meet with Hornet to finalize logistical planning
April - June
• Build competitive website
• Begin Advertising & Networking
• Order 1st shipment based on Marketing Research
• Employee training (Sales, Installation process, Customer service)
July -
December
• Sell!
• Place Possible Second Order
• Gear up to repeat in Shandong & Fujian
Repeat
• Year 2: Shandong & Fujian
• Year 3: Beijing

20. Time Line Cont.
Year 1:
Shanghai

21. Time Line Cont.
Year 1:
Shanghai
Year 2:
Shandong
& Fujian

22. Time Line Cont.
Year 1:
Shanghai
Year 2:
Shandong
& Fujian
Year 3:
Beijing

23. Estimated Revenue
 Factors to remember:
 Large urban population
 Continual building of new properties
 Prominent upper class market
 Bad water is no longer the norm
 Constant demand for filters and salt

24. Estimated Revenue Cont.
 Profit Margin: 35%
 Cost Breakdown:
 Cost of Product: 50%
 Shipping Costs: 20%
 Building & Employee Costs: 30%
Product Cost Selling Price Profit/System
Commercial Water
Softening System
($11,700) $18,000 $6,300
Reverse Osmosis
System
($975) $1,500 $525
Filter ($65) $100 $35
Bag of Salt ($1) $5 $4
Item Cost/Year
(per city)
Product $10,355,000
Shipping $1,742,000
Employees
& Building
$2,964,000

25. Estimated Revenue Cont.
Product
Profit/
Sale
Expected
Sales/Year
(per city)
Total
Profit/Year
(per city)
Total Profit for
4 Cities
(After 3 Years)
Commercial Water
Softening System
$6,300 300 $1,890,000 $15,120,000
RO system $525 5,000 $2,625,000 $21,000,000
Filters $35 5,000 $175,000 $1,400,000
Salt $4 6,000 $24,000 $192,000
(Total Marketing Costs) ($3,807,925)
Total $4,714,000 $33,904,075

26. Estimated Revenue Cont.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Year 1 Year 2 Year 3 Total

27. Positive Global Impact
 As our success improves we will:
 Donate funds to Non Profits who
specialize in Water Quality in
China’s Rural Areas
 Develop a cheaper alternative to
our RO system to market to
those in China’s Rural Areas

28. Contribution to the
Global Organization
 China has a high need for our product/service
 Opportunity for continual expansion
 High profit margins
 Total Contribution of $33,974,075 after 3 years
 Guaranteed to have a positive impact on rural China
 We can find a simple solution to their big problem
 Development of a more affordable RO will allow profit
margins to increase

29. Thank You!
Questions?