Benchmark research to discover and understand Distributor opinions, attitudes and purchasing of O-ring products and specifications. Findings include brand awareness and perceptions, competitive analysis, gap analysis, key buying criteria, media consumption habits of the target audience.

1. Distributor Survey
Findings & Recommendations
Presented to
Presented by

2. Distributor survey purpose and methodology
 Purpose
– Discover and understand Distributor
opinions, attitudes, and purchasing of O‐
ring products
– Understand Spec Seals’ brand awareness
and perceptions
– Identify “distributor” information sources
– Understand key competitor brand
awareness and perceptions
– Discover important product and brand
attributes
– Understand who’s involved in O‐ring
purchasing process and their role
– Ultimately, survey insights to be used for
future brand strategy, positioning, and key
messaging development
 Methodology
– Convenience sampling among Spec
Seals’ entire distributor database of
903 customers and prospects
– Final sample size: N = 863
– Delta:  = 40 (due to duplicates and
invalid records)
– Survey completes: 52 or 6% (within the
projected 3% to 10% range)
– Instrument was HTML web‐based
survey so anyone, on any device, with
an internet connection could
conveniently complete the survey
– Incentive was single entry sweepstakes
• 1 new iPad with retina display
• 5 iPod Shuffles
• 5 $25 iTunes gift cards
2

3. Executive summary
 Survey was fielded on September 24, 2013
 Sample size N=863; survey completes were 52 or 6%
 Respondents: Key decision makers for the purchase
of O‐rings
1. Owner/president (14%)
2. Purchasing agent (10%)
3. Customer service manager/specialist (10%)
 Among the most important factors in selecting an O‐
Ring supplier are
1. Consistently provides high‐quality O‐rings
2. Quick response to problems
3. Delivers on time
4. Meets quality standards
5. Quick turn‐around on orders
6. Technical competency
7. Sufficient inventory
8. Meets short lead times
 The most frequently sold O‐ring is Nitrile (Bauna‐N)
at 82%, followed by Viton (FKM – Fluoroelastomer) at
34%
 Top vertical markets are:
1. Pumps and valves
2. Hydraulic & pneumatic systems 3
 Parker Seal has greatest share of mind with 38%,
Spec Seals has 16% and Parco has 11%
 The one thing respondents like about Spec Seals is
“customer service”; Parker Seal, their website
content
 The one thing respondents like least about Parker
Seal is long lead times; Spec Seals’ “limited
offering” was the thing they liked least
 Respondents said Parker Seal
– Has insufficient inventory (67%)
– Doesn’t provide quick turn‐around on orders (50%)
 Spec Seals does have sufficient inventory and
quick turn‐around on O‐ring orders (100%)
 Respondents’ misunderstanding of Spec Seals
includes
– 67% don’t know Spec Seals can deliver custom
compounds or prototypes in weeks vs. months
– 33% said Spec Seals can not meet short lead times;
30% said they didn’t know (63% combined)
– 33% said they didn’t know if Spec Seals could
provide custom O‐rings to spec
– 33% said they didn’t know if Spec Seals could design
and manufacturer custom O‐rings; (33% said it was
unimportant)

4. Part 1
General Information

5. Q1. Please tell us your current job title
 Most frequently mentioned job
titles (combined 33%) are
– “Distributorship Owner/President”
– Purchasing agent
– Customer svc. mgr./specialist
 “Other” job titles
– Purchasing
– Corporate Quoting
– Account Manager
– VP Sales & Marketing
– CFO
– Technical Manager
– Quality Control/Traffic Manager
– Territory Manager
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
2
4
6
8
10
12
Responses
Respondent %
Responses
5
Respondent %

6. Q2. Please tell us your primary role in the selection
and/or purchase of O‐rings for your company
 Most respondents (74%) . . .
1. Purchase products based on
requirements
2. Collaborate with customer to
determine need
3. Make the decision
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
2
4
6
8
10
12
14
16
Responses
Respondent %
6
Respondent %
Responses

7. Q3. Please tell us the top THREE markets for the
O‐ring products your company sells
 Top vertical markets
1. Pumps & valves
2. Hydraulic & pneumatic systems
 Other leading vertical markets
1. Aerospace
2. Medical products
3. Material handling equipment
0 2 4 6 8 10
Agriculture equipment
Off‐highway equip.
Water products/filtration
Automotive
Electronics
Food products
Irrigation
Material handling equip.
Medical products
Pool equip.
Other
Aerospace
Hydraulic & pneumatic systems
Pumps & valves
No. 1 Choice
No. 2 Choice
No. 3 Choice
Responses
7

8. Q4. Please tell us the annual sales of your
company
 37% of respondents have
sales of $5MM to over
$100MM
 27% report sales of $1MM
to $5MM
 The largest percentage of
respondents don’t know
their company’s annual
sales
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
2
4
6
8
10
12
14
16
Responses
Respondent %
8
Respondent %
Responses

9. Q5. Within your company, who are the key
decision makers for selecting/purchasing O‐rings
 Most frequently mentioned
job titles
– Distributor owner/president
– Purchasing agent
– Customer service manager
 “Other” titles, include
– Inside Sales
– Account Manager
– CFO
– Marketing
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
1
2
3
4
5
6
7
8
Responses
Respondent %
9
Respondent %
Responses

10. Q6. Please tell us what information sources you use to
identify/select O‐ring products and suppliers
 Customer input (specifications) is
the primary information source
(83%)
 Distributor’s market knowledge is
second (54%)
 Supplier recommendations (45%)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0
5
10
15
20
25
30
35
40
45
50
Responses
Respondent %
10
Respondent %
Responses

11. Q7. Please tell us what publications and websites you
use to identify/select O‐ring products and suppliers
 Industrial Distribution (27%)
 Rubber Plastic News (17%)
 Hydraulics & Pneumatics (17%)
 Industrial Supply (15%)
 “Other/Internet sites”
– Google
– Manufacturer websites
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
5
10
15
20
25
30
Responses
Respondent %
11
Respondent %
Responses

12. Q8. Please tell us the annual purchase volume
of O‐rings for your company
 23% of respondents purchase
more than $300K annually
 Median is $149K per year
 $300K+ annual purchase email
list
– staverhyd@aol.com
– pseymour@herculescn.com
– drichardson@stateseal.com
– mpacker@rhfs.com
– bobby@pneu‐draulics.com
– tms@northcoastseal.com
– jhurley@websealinc.com
– tportesi@inscogroup.com
– sales@flexlineus.com
– steph@hitechseals.com
– chris.coons@motion‐ind.com
– dougminceydemco@aol.com
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
2
4
6
8
10
12
14
Responses
Respondent %
12
Respondent %
Responses

13. Part 2
Marketing & Brand Information

14. Q1. When you think of O‐ring companies and
brands, what ONE company comes to mind first
 Parker Seal has 38% share of mind and
out distances all other brands
 Spec Seals has less than half the mind
share of Parker at 16%
 Parco is third at 11%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
2
4
6
8
10
12
14
16
18
Responses
Respondent %
14
Respondent %
Responses

15. Q2. Please tell us the ONE thing you like MOST about
the company you selected (top three companies)
 Spec Seals excels at
customer service
 Parker Seal excels at
valuable website info
followed by
– Technical expertise
– High‐quality products
– Broad product selection
 Parco is not exceptional
in any particular service
or product offering
0
0.5
1
1.5
2
2.5
3
3.5
Parco
Parker Seal
Spec Seals
15
Spec Seals has a 3:1 “Customer Service”
advantage over Parker
Responses
Parker website content is
considered valuable

16. Q3. Please tell us the ONE thing you like LEAST about
the company you selected – top three companies
 Spec Seals is perceived as
having “limited offerings”
 Parker is perceived as having
– Long lead times
– Slow delivery
– And, being too large
 Parco is perceived as being
equally deficient with
– Lack of material developments
– Long lead times
– Selling to everyone, not just
distribution (no protection)
0
1
2
3
4
5
6
Parco
Parker Seal
Spec Seals
16
Responses

17. Response
s
Q4. Please tell us about your experiences with and/or
perceptions of the ONE company selected (top three companies)
0
2
4
6
8
10
12
14
16
18
20
Parco Yes
Parco No
Parker Seal Yes
Parker Seal No
Spec Seals Yes
Spec Seals No
Spec Seals Don't Know
Spec Seals Not Imp't.
17
OPPORTUNITY
• Parker does NOT provide quick
turn‐around on all orders (50%)
• Spec Seals DOES provide quick
turn‐around on all orders (100%
OPPORTUNITY
• Parker does NOT have
sufficient inventory (67%)
• Spec Seals DOES have
sufficient inventory (100%)
OPPORTUNITY
• Parker does NOT meet
short lead times
• Spec Seals CAN meet
short lead times (17%)
• Spec Seals can NOT meet
short lead times (33%)
• Don’t know (30%)

18. Q4a. (Spec Seals’ respondents) Please tell us about your
experiences with and/or perception of the ONE company selected
 Spec Seals performs well in several
key selection criteria
– Consistently provides high‐quality O‐rings
– Delivers on time
– Has excellent brand reputation
– Has sufficient inventory
– Is technically competent
– Priced competitively
– Quick turn‐around on all orders
– Quick response to problems
– Technically astute in all
compounds and applications
 67% did not know Spec Seals could
deliver prototypes in weeks vs.
months
 67% did not know, or felt it was
unimportant, that Spec Seals can
design and manufacturer custom
O‐rings
 50% did not know Spec Seals can
develop custom compounds and
almost 20% felt it’s unimportant
0
1
2
3
4
5
6
7
Yes
No
Don't Know
Not Important
18
Responses

19. Q5. Is your company seeking to introduce new O‐ring products
to your customers and prospects within the next 12 months
 Respondents said they will
– Present new O‐ring products (33%)
– May present new O‐ring products (30%)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0
2
4
6
8
10
12
14
16
No Don't
Know
Maybe Yes
Responses
Respondent %
19
Responses
Respondent %

20. Q6. If yes, what type of O‐ring products does your company expect to
introduce to your customers and prospects within the next 12 months
 There was no clear
consensus/preference on the
type of products to be
introduced to customers and
prospects
 All offerings received the
same number of responses
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
0
0
1
1
1
1
Responses
Respondent %
20
Respondent %
Responses

21. Q7. What type of O‐rings does your company
sell most
 Nitrile (Bauna‐N) was the most
frequently mentioned (82%)
 Viton (FKM – Fluoroelastomer)
was the second most frequently
mentioned (34%)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0
5
10
15
20
25
30
35
40
Responses
Respondent %
21
Respondent %
Responses

22. Q8. When thinking about the companies that serve
the O‐ring marketplace, how familiar are you with
 Respondents are equally familiar with
Spec Seals and Parker Seal (74% and
73% respectively)
 26% are “somewhat” or “not” familiar
with Spec Seals
 Least familiar with Hutchinson Seals
(71%)
22
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0
5
10
15
20
25
30
35
Very Familiar
Somewhat Familiar
Not Familiar
Not Familiar %
Responses
Respondent %

23. Q9. When selecting O‐ring products, how important are
these factors in the decision making process
 Top 10 factors in the decision
making process
1. Consistently provides high‐quality O‐
rings
2. Provides quick response when
problems arise
3. Delivers O‐rings on time
4. Meets all of our O‐ring quality
standards
5. Provides quick turn‐around on all O‐
ring orders
6. Is technically competent
7. Is technically astute in all compounds
and applications
8. Has sufficient inventory to meet
needs
9. Products/services are priced
competitively
10. Can meet short lead times on non‐
stock O‐rings
 Not custom compounds
 Not design/mftr. custom O‐rings
 Not prototypes in weeks vs.
months
0
5
10
15
20
25
30
35
40
45
Very Important
Somewhat Important
Not Important
23
Responses
Top 10 selection criteria

24. Top 10 selection criteria
Spec Seals’ performance against top 10 selection
criteria
 Respondents rank
Spec Seals high in 8 of
the top 10 selection
criteria
 Lowest ranking is
“Can meet short lead
times”
– 17% say “Yes”
– 33% say “No”
– 30% “Don’t know”
– 17% “Not important”
 50% don’t know the
Company develops
custom compounds
 67% don’t know the
Company can deliver
prototypes in weeks
vs. months
0%
20%
40%
60%
80%
100%
120%
Yes
No
Don't Know
Not Important
24
Selection Criteria – Least Important to Most Important
Respondent %

25. Q10. What lead times do you expect from
suppliers for non‐stock O‐rings (weeks)
 49%) of respondents expect lead
times of 4‐6 weeks for non‐stock O‐
rings
 Another 30% expect lead times of 1‐3
weeks
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
5
10
15
20
25
˂1
Week
˃12
Weeks
10‐12
Weeks
7‐9
Weeks
1‐3
Weeks
4‐6
Weeks
Responses
Respondent %
25
Respondent %
Responses

26. Q11. When thinking of the companies you are VERY FAMILIAR
with, what’s the ONE thing that comes to mind (top 3 brands)
26
0
0.5
1
1.5
2
2.5
3
3.5
Parco
Parker Seals
Spec Seals
Responses

27. Q12. How familiar are you with the company,
Spec Seals
 About 50% of respondents
reported being “very familiar”
with Spec Seals
– This is concerning since this is the
core target and mostly Spec Seals’
list
 30% reported being
“somewhat” familiar
 15% said they were “not
familiar”
 47% are only “somewhat” or
“not” familiar with Spec Seals
– This is concerning since this is the
core target and Spec Seals’ list
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
5
10
15
20
25
30
Responses
Respondent %
27
Respondent %
Responses

28. Q13. Please tell us about your experiences with
and/or perceptions of Spec Seals
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0
5
10
15
20
25
30
35
Yes
No
Not Important
Don't Know
Don't Know %
Responses
Respondent %

29. Q14. If there were one thing you could change
about Spec Seals, what would it be
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
2
4
6
8
10
12
Responses
Respondent %
Responses
Respondent %
29

30. Recommendations
 Prioritize and communicate Spec
Seals’ performance in top 10
selection criteria
 Emphasize performance compared to
Parker
– Able to meet short lead times
– Always have full inventory
– Quick turn‐around on all orders
– Customer service
 Consider developing a marketing
communication program to tell the
story
– Consider distributor co‐branded direct
marketing and collateral program using
distributor lists
– Consider advertising
 Target top vertical markets:
– Pumps & valves
– Hydraulic & pneumatic systems
– Medical and Material handling
equipment
 Target key audiences:
– Owners/presidents
– Purchasing agents
– Customer service managers/specialists

31. Brand strategy & positioning
 Raise visibility of the brand
– Too many distributors either have incorrect POV
(33%) or simply don’t know (30%)
 Continue using current positioning line
– It’s valid and addresses two of the top supplier
selection criteria
– Until a better message is developed, we see no
reason to change
 Consider positioning Spec Seals as the
alternative to Parker Seals. Messages:
1. Consistently high quality
2. Delivers on time
3. Quick turn on all orders
4. Has sufficient inventory
5. Can meet short lead times
6. Technical competency
31

32. Key messaging
 The right Seal. Right now.
– Slogan is valid . . . but, can Spec Seals
deliver on the promise
• Only 20% say you can’t meet short lead times
 Supplier selection is based on their
ability to do the following:
1. Consistently provides high‐quality products
2. Responds quickly to problems
3. Delivers products on time
4. Meets quality standards
5. Provides quick turn‐around on orders
6. Technically competent
7. Technically astute in compounds and
applications
8. Has sufficient inventory
9. Can meet short lead times
 These are the messages to be
communicated
32

33. 33
NEXT STEPS
 Discuss survey implications
 Determine marketing communications budget
– Develop marketing communication plan
– Execute, measure, refine

34. Q&A