W.H. Plastics faces challenges including a highly competitive industry, reliance on one major customer for 74% of sales, and uncertainty from foreign exchange rates. The company is considering strategies like attending global trade shows to build relationships and gain industry insights, developing an online presence to target likely customers, and sourcing low value-added parts from China to control costs. A staged 24 month plan is outlined to implement these strategies and monitor their impact on reaching the company's profit margin target.

1. W.H. Plastics Inc.

2. Situation
Foreign exchange
Chinese competitors
Increasingly global marketplace
All eggs in one basket
74% of sales from one customer

3. Average Monthly Exchange Rates 1998-2008
1
0.9
0.8
0.7
0.6
0.5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1 $ Canadian = x $ US

4. WH Plastics
Decision process is controlled (Family business)
Centralized focus on R&D and operations
Extensive product line
Global presence in a variety of industries
Customized, high quality, and service oriented

5. Industry
Widespread use
Highly competitive
Production efficiency is one of few differentiators
Corporate social responsibility; Green, recycling
High density of production facilities
Technology costs and upkeep are expensive

6. Your Customer
Appliance sector
Speed
Price
Quality
Aerospace and Military
Durability
Quality
Automotive
Timely
Price
Quality
Volume
Customer service
The mould gives the customer the upper hand

7. Problems
New customer and target market uncertainty
Exchange rate makes WH less attractive to US
customers
Downsizing
Lack of Chinese market know-how
Uncertain expansionary path

8. Target - 9% profit margin
2006: 3%
2007: 5.1%
2008: 7.5% ???
2009: 9% ???
Stable costs ---> Drive new revenue

9. “The best marketing is education”
- Regis McKenna

10. Trade shows
Attend trade shows globally
Demonstrate physical superiority of WH
products
Build network in the community
Gain insight into future trends
Estimated annual cost = $100,000

11. Online Presence
Target the most likely customers
Cost Per Impression (CPM)
Cost Per Click (CPC)
Purchase Rate
Traffic weighted budget

14. Supplier Agreements
Exclusivity contracts with discounts
Referrals
Sourcing low value-added parts from China

15. Month
3 6 9 12 15 18 21 24
Develop list of keywords
Interview for trade show delegates
Look for agent in China
Implement initial online ads
Attend trade shows
Monitor and adjust budget